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HF 1366

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 05/08/2017 10:12am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

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Introduction Posted on 02/16/2017
1st Engrossment Posted on 02/23/2017 compared with SF1293 4th Engrossment

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A bill for an act
relating to workers' compensation; adopting recommendations of the Workers'
Compensation Advisory Council; adopting department proposals; modifying
payments for inpatient services; allowing a forbearance of amounts owed to the
special compensation fund; modifying intervention procedures; authorizing
rulemaking; amending Minnesota Statutes 2016, sections 176.1362, subdivisions
1, 2; 176.275, subdivision 1; 176.285; 176.361, subdivisions 2, 3; 176.521, by
adding a subdivision; 176.541, subdivisions 1, 8, by adding a subdivision; 176.611,
subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 176;
repealing Minnesota Statutes 2016, section 176.541, subdivision 7.

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

ARTICLE 1

DEPARTMENT PROPOSALS

Section 1.

Minnesota Statutes 2016, section 176.1362, subdivision 1, is amended to read:


Subdivision 1.

Payment based on Medicare MS-DRG system.

(a) Except as provided
in subdivisions 2 and 3, the maximum reimbursement for inpatient hospital services, articles,
and supplies is 200 percent of the amount calculated for each hospital under the federal
Inpatient Prospective Payment System developed for Medicare, using the inpatient Medicare
PC-Pricer program for the applicable MS-DRG as provided in deleted text beginparagraph (b)deleted text endnew text begin this subdivisionnew text end.
All adjustments included in the PC-Pricer program are included in the amount calculated,
including but not limited to any outlier payments.

(b) Payment under this section is effective for services, articles, and supplies provided
to patients discharged from the hospital on or after January 1, 2016. Payment for services,
articles, and supplies provided to patients discharged on January 1, 2016, through December
31, 2016, must be based on the Medicare PC-Pricer program in effect on January 1, 2016.

new text begin (c) For patients discharged on or after the effective date of this section, new text endpayment for
inpatient services, articles, and supplies deleted text beginfor patients discharged in each calendar year
thereafter
deleted text end must be deleted text beginbased ondeleted text endnew text begin calculated according tonew text end the PC-Pricer program deleted text beginin effect on
January 1 of the year of discharge
deleted text endnew text begin identified on Medicare's Web site as FY 2016.1, updated
on January 19, 2016
new text end.

new text begin (d) For patients discharged on or after October 1, 2017, payment for inpatient services,
articles, and supplies must be calculated according to the PC-Pricer program posted on the
Department of Labor and Industry's Web site as follows:
new text end

new text begin (1) No later than October 1, 2017, and October 1 of each subsequent year, the
commissioner must post on the department's Web site the version of the PC-Pricer program
that is most recently available on Medicare's Web site as of the preceding July 1. If no
PC-Pricer program is available on the Medicare Web site on any July 1, the PC-Pricer
program most recently posted on the department's Web site remains in effect.
new text end

new text begin (2) The commissioner must publish notice of the applicable PC-Pricer program in the
State Register no later than October 1 of each year.
new text end

new text begin (e) The MS-DRG grouper software or program that corresponds to the applicable version
of the PC-Pricer program must be used to determine payment under this subdivision.
new text end

deleted text begin (c)deleted text endnew text begin (f)new text end Hospitals must bill workers' compensation insurers using the same codes, formats,
and details that are required for billing for hospital inpatient services by the Medicare
program. The bill must be submitted to the insurer within the time period required by section
62Q.75, subdivision 3. For purposes of this section, "insurer" includes both workers'
compensation insurers and self-insured employers.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2016, section 176.1362, subdivision 2, is amended to read:


Subd. 2.

Payment for catastrophic, high-cost injuries.

(a) If the hospital's total usual
and customary charges for services, articles, and supplies for a patient's hospitalization
exceed a threshold of $175,000, annually adjusted as provided in paragraph (b),
reimbursement must not be based on the MS-DRG system, but must instead be paid at 75
percent of the hospital's usual and customary charges.new text begin The threshold amount in effect on
the date of discharge determines the applicability of this paragraph.
new text end

(b) deleted text beginBeginningdeleted text endnew text begin Onnew text end January 1, 2017, deleted text beginand each January 1 thereafter,deleted text end the commissioner
must adjust the previous year's threshold by the percent change in average total charges per
inpatient case, using data available as of October 1 for non-Critical Access Hospitals from
the Health Care Cost Information System maintained by the Department of Health pursuant
to chapter 144. new text beginBeginning October 1, 2017, and each October 1 thereafter, the commissioner
must adjust the previous threshold using the data available as of the preceding July 1.
new text endThe
commissioner must deleted text beginannuallydeleted text end publish notice of the updated threshold in the State Register.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2016, section 176.275, subdivision 1, is amended to read:


Subdivision 1.

Filing.

If a document is required to be filed by this chapter or any rules
adopted pursuant to authority granted by this chapter, the filing shall be completed by the
receipt of the document at the division, department, office, or the court of appeals. The
division, department, office, and the court of appeals shall accept any document which has
been delivered to it for legal filing, but may refuse to accept any form or document that
lacks deleted text beginthe name of the injured employee, employer, or insurer, the date of injury, or the
injured employee's Social Security number
deleted text endnew text begin information required by statute or rulenew text end.new text begin The
division, department, office, and the court of appeals are not required to maintain, and may
destroy, a duplicate of a form or document that has already been filed.
new text end If a workers'
compensation identification number has been assigned by the department, it may be
substituted for the Social Security number on a form or document. If the injured employee
has fewer than three days of lost time from work, the party submitting the required document
must attach to it, at the time of filing, a copy of the first report of injury.

A notice or other document required to be served or filed at either the department, the
office, or the court of appeals which is inadvertently served or filed at the wrong one of
these agencies shall be deemed to have been served or filed with the proper agency. The
receiving agency shall note the date of receipt of a document and shall forward the documents
to the proper agency no later than two working days following receipt.

Sec. 4.

Minnesota Statutes 2016, section 176.285, is amended to read:


176.285 SERVICE OF PAPERS AND NOTICES; ELECTRONIC FILING.

new text begin Subdivision 1. new text end

new text begin Service by mail. new text end

Service of papers and notices shall be by mail or
otherwise as the commissioner or the chief administrative law judge may by rule direct.
Where service is by mail, service is effected at the time mailed if properly addressed and
stamped. If it is so mailed, it is presumed the paper or notice reached the party to be served.
However, a party may show by competent evidence that that party did not receive it or that
it had been delayed in transit for an unusual or unreasonable period of time. In case of
nonreceipt or delay, an allowance shall be made for the party's failure to assert a right within
the prescribed time.

new text begin Subd. 2. new text end

new text begin Electronic service and filing. new text end

new text begin(a) new text endWhere a statute or rule authorizes or requires
a document to be filed with or served on an agency, the document may be filed electronically
if electronic filing is authorized by the agency and if the document is transmitted in the
manner and in the format specified by the agency. new text beginIf electronic filing of a document is
authorized by the agency and a statute or rule requires a copy of the document to be provided
or served on another person or party, the document filed electronically with the agency and
provided or served on the other person or party must contain the same information in the
format required by the commissioner.
new text end

new text begin (b) new text endWhere a statute or rule authorizes or requires a person's signature on a document to
be filed with or served on an agency, the signature may be new text beginan electronic signature, as defined
by section 325L.02, or
new text endtransmitted electronically, if authorized by the agency and if the
signature is transmitted in the manner and format specified by the agency. The commissioner
may require that a document authorized or required to be filed with the commissioner,
department, or division be filed electronically in the manner and format specified by the
commissioner, except that an employee must not be required to file a document electronically
unless the document is filed by an attorney on behalf of an employee. deleted text beginAn agency may serve
a document electronically if the recipient agrees to receive it in an electronic format.
deleted text end The
department or court may adopt rules for the certification of signatures.

new text begin (c) An agency may serve a document electronically on a payer, rehabilitation provider,
or attorney. An agency may serve a document on any other party if the recipient agrees to
receive it in an electronic format. The date of electronic service of a document is the date
the recipient is sent a document electronically, or the date the recipient is notified that the
document is available on a Web site, whichever occurs first.
new text end

new text begin (d) new text endWhen the electronic filing of a legal document with the department marks the
beginning of a prescribed time for another party to assert a right, the prescribed time for
another party to assert a right shall be lengthened by two calendar days when it can be shown
that service to the other party was by mail.

new text begin Subd. 3. new text end

new text begin Proof of service. new text end

The commissioner and the chief administrative law judge
shall ensure that proof of service of all papers and notices served by their respective agencies
is placed in the official file of the case.

new text begin Subd. 4. new text end

new text begin Definitions; applicability. new text end

new text begin(a) new text endFor purposes of this section, "agency" means
the workers' compensation division, the Department of Labor and Industry, the commissioner
of the Department of Labor and Industry, the Office of Administrative Hearings, the chief
administrative law judge, or the Workers' Compensation Court of Appeals. "Document"
includes documents, reports, notices, orders, papers, forms, information, and data elements
that are authorized or required to be filed with an agency or the commissioner or that are
authorized or required to be served on or by an agency or the commissioner.new text begin "Payer" means
a workers' compensation insurer, self-insurer employer, or third-party administrator.
new text end

new text begin (b) new text endExcept as otherwise modified by this section, the provisions of chapter 325L apply
to electronic signatures and the electronic transmission of documents under this section.

Sec. 5.

Minnesota Statutes 2016, section 176.541, subdivision 1, is amended to read:


Subdivision 1.

Application of chapter to state employees.

This chapter applies to the
employees of any department of this statenew text begin as defined in section 3.732, subdivision 1, clause
(1)
new text end.

Sec. 6.

Minnesota Statutes 2016, section 176.541, is amended by adding a subdivision to
read:


new text begin Subd. 7a. new text end

new text begin Exceptions. new text end

new text begin This section does not apply to the University of Minnesota.
new text end

Sec. 7.

Minnesota Statutes 2016, section 176.541, subdivision 8, is amended to read:


Subd. 8.

State may insure.

The state of Minnesota may elect to insure its liability under
the workers' compensation law for persons employed under the federal deleted text beginEmergency
Employment Act of 1971, as amended, and the Comprehensive Employment and Training
Act of 1973, as amended
deleted text endnew text begin Workforce Innovation and Opportunity Act, and similar programsnew text end,
with an insurer properly licensed in Minnesota.

Sec. 8.

Minnesota Statutes 2016, section 176.611, subdivision 2, is amended to read:


Subd. 2.

State departments.

Every department of the statedeleted text begin, including the University of
Minnesota,
deleted text end shall reimburse the fund for money paid for its claims and the costs of
administering the revolving fund at such times and in such amounts as the commissioner
of administration shall certify has been paid out of the fund on its behalf. The heads of the
departments shall anticipate these payments by including them in their budgets. In addition,
the commissioner of administration, with the approval of the commissioner of management
and budget, may require an agency to make advance payments to the fund sufficient to
cover the agency's estimated obligation for a period of at least 60 days. Reimbursements
and other money received by the commissioner of administration under this subdivision
must be credited to the state compensation revolving fund.

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 176.541, subdivision 7, new text end new text begin is repealed.
new text end

Sec. 10. new text beginEFFECTIVE DATE.
new text end

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

ARTICLE 2

SPECIAL COMPENSATION FUND

Section 1.

new text begin [176.1292] FORBEARANCE OF AMOUNTS OWED TO THE SPECIAL
COMPENSATION FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following definitions apply.
new text end

new text begin (a) "Payer" means a workers' compensation insurer, or an employer or group of employers
that are self-insured for workers' compensation.
new text end

new text begin (b) "Retirement benefits" means retirement benefits paid by any government retirement
benefit program and received by employees, other than old age and survivor insurance
benefits received under the federal Social Security Act, United States Code, title 42, sections
401 to 434. Retirement benefits include retirement annuities, optional annuities received in
lieu of retirement benefits, and any other benefit or annuity paid by a government benefit
program that is not clearly identified as a disability benefit or disability annuity in the
applicable governing statute.
new text end

new text begin Subd. 2. new text end

new text begin Payment of permanent total disability benefits to employees, dependents,
and legal heirs.
new text end

new text begin (a) A payer is entitled to the relief described in subdivisions 3 and 4 only
if the payer complies with all of the conditions in paragraphs (b) to (d) for all of the payer's
permanently totally disabled employees and documents compliance according to the
procedures and forms established by the commissioner under subdivision 7.
new text end

new text begin (b) Except as provided in paragraph (e), the payer must:
new text end

new text begin (1) recharacterize supplementary benefits paid to all employees as permanent total
disability benefits if the supplementary benefits were paid because the permanent total
disability benefits were reduced by retirement benefits received by the employee;
new text end

new text begin (2) pay all permanently totally disabled employees, regardless of the date of injury, past
and future permanent total disability benefits calculated without any reduction for retirement
benefits received by the employees, from the date the employees' benefits were first reduced;
and
new text end

new text begin (3) for all deceased employees, pay the employees' dependents or, if none, the employees'
legal heirs, the permanent total disability benefits the deceased employees would have
received if the benefits had been calculated without any reduction for retirement benefits
received by the employees.
new text end

new text begin (c) A payer may take a credit against its obligations under paragraph (b), clauses (2) and
(3), for:
new text end

new text begin (1) supplementary benefits previously paid to an employee that have been recharacterized
as permanent total disability benefits under paragraph (b), clause (1); and
new text end

new text begin (2) permanent total disability benefits previously paid to an employee.
new text end

new text begin (d) The payer must pay the permanent total disability benefits as provided in paragraphs
(b) and (c) within the time frames described in clauses (1) to (4). More than one time frame
may apply to a claim.
new text end

new text begin (1) No later than 150 days following final enactment, the payer must begin paying the
recalculated permanent total disability benefit amounts to employees who are entitled to
ongoing permanent total disability benefits.
new text end

new text begin (2) No later than 210 days following final enactment, the payer must pay employees the
amounts that past permanent total disability benefits were underpaid.
new text end

new text begin (3) No later than 270 days following final enactment, the payer must pay the employees'
dependents or legal heirs the amounts that permanent total disability benefits were underpaid.
new text end

new text begin (4) The commissioner may waive payment under paragraphs (b) and (c) or extend these
time frames if the payer, after making a good-faith effort, is unable to: locate an employee;
identify or locate the dependents or legal heirs of a deceased employee; or locate
documentation to determine the amount of an underpayment.
new text end

new text begin (e) Paragraphs (a) to (d) do not apply if:
new text end

new text begin (1) the employee died before January 1, 2008;
new text end

new text begin (2) the employee's last permanent total disability benefit was paid before January 1,
2000;
new text end

new text begin (3) the employee's last permanent total disability benefit would have been paid before
January 1, 2000, if it had not been reduced by his or her retirement benefits;
new text end

new text begin (4) a stipulation for settlement, signed by the employee and approved by a compensation
judge, provided for a full, final, and complete settlement of permanent total disability benefits
under this chapter in exchange for a lump sum payment amount or a lump sum converted
to a structured annuity;
new text end

new text begin (5) a final court order, or a stipulation for settlement signed by the employee and approved
by a compensation judge, explicitly states the employee's permanent total disability benefits
may be reduced by specified retirement benefits. Paragraphs (a) to (d) apply if a court order
or stipulation for settlement is ambiguous about whether the employee's permanent total
disability benefits could be reduced by retirement benefits; or
new text end

new text begin (6) a final court order or a stipulation for settlement described in clause (4) or (5) was
vacated after the effective date of this section.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement of supplementary benefits. new text end

new text begin (a) Except as provided in
subdivision 9, paragraph (a), clause (2), a payer that has complied with the requirements of
subdivision 2, paragraphs (a) to (d):
new text end

new text begin (1) is not required to repay supplementary benefits for any claim that the special
compensation fund over reimbursed due to the payer's reduction of any employee's permanent
total disability benefits by retirement benefits received by the employee;
new text end

new text begin (2) is entitled to reimbursement of supplementary benefits paid or payable before August
13, 2014, to the extent the special compensation fund denied reimbursement due to the
payer's reduction of any employee's permanent total disability benefits by the employee's
retirement benefits; and
new text end

new text begin (3) is entitled to reimbursement of supplementary benefits the special compensation
fund withheld under section 176.129, subdivision 13, paragraph (a), to offset supplementary
benefits that were over reimbursed due to the payer's reduction of any employee's permanent
total disability benefits by the employee's retirement benefits.
new text end

new text begin (b) Paragraph (a) does not preclude the special compensation fund from denying
reimbursement of supplementary benefits, or adjusting the reimbursement amount, for any
reason other than reduction of permanent total disability benefits by the employee's retirement
benefits.
new text end

new text begin Subd. 4. new text end

new text begin Assessments. new text end

new text begin (a) Except as provided in subdivision 6, paragraph (b), clause
(2), and subdivision 9, paragraph (a), clause (2), a payer that has complied with the
requirements of subdivision 2, paragraphs (a) to (d), is not required to pay past or future
assessments under section 176.129 on the amount of increased or additional permanent total
disability benefits paid, or on supplementary benefits that are appropriately characterized
as permanent total disability benefits, due to the elimination of the retirement benefit
reduction.
new text end

new text begin (b) The special compensation fund shall not recalculate assessments previously paid by
any payer because of the assessment adjustments in paragraph (a).
new text end

new text begin (c) The assessment adjustments described in paragraph (a) do not apply to permanent
total disability benefits paid to employees with dates of injury on or after August 13, 2014.
Payers must pay full assessments according to section 176.129 on permanent total disability
benefits calculated without a reduction for retirement benefits for these employees.
new text end

new text begin Subd. 5. new text end

new text begin Refunds. new text end

new text begin (a) A payer is entitled to a refund from the special compensation fund
if:
new text end

new text begin (1) the payer complies with the requirements of subdivision 2, paragraphs (a) to (d); and
new text end

new text begin (2) due to the elimination of the retirement benefit reduction, the payer repaid the special
compensation fund for over reimbursement of supplementary benefits, or paid assessments
on the increased permanent total disability benefits for employees with dates of injury before
August 13, 2014.
new text end

new text begin (b) The special compensation fund must issue a refund within 30 days after receiving
the payer's documentation of compliance with subdivision 2, paragraphs (a) to (d), and an
itemization by claim of the amount repaid or paid to the special compensation fund as
described in paragraph (a), clause (2).
new text end

new text begin (c) The special compensation fund must pay interest on any refunded amount under this
section to the payer at an annual rate of four percent, calculated from the date the payer
repaid or paid the special compensation fund as described in paragraph (a), clause (2).
new text end

new text begin Subd. 6. new text end

new text begin Applicability. new text end

new text begin (a) This section does not preclude any employee, dependent, or
legal heir from pursuing additional benefits beyond those paid under subdivision 2,
paragraphs (b) to (d); however, the payments under subdivision 2, paragraphs (b) to (d), are
not to be construed as an admission of liability by the payer in any proceeding. The payments
cannot be used to justify additional claims; they represent a compromise between the payer
and the special compensation fund on supplementary benefits and assessments. Payers
reserve any and all defenses to claims to which this section does not apply.
new text end

new text begin (b) If an employee, dependent, or legal heir pursues additional benefits, claims, or
penalties related to the benefits paid or payable under subdivision 2, paragraphs (b) to (d),
payers may assert any and all defenses including, but not limited to, those specified in
subdivision 2, paragraph (e), clauses (4) and (5), with respect to the additional benefits,
claims, and penalties, and any future permanent total disability benefits payable, subject to
the following conditions:
new text end

new text begin (1) if it is determined by a compensation judge, the Workers' Compensation Court of
Appeals, or the Minnesota Supreme Court that the payer is entitled to reduce the employee's
permanent total disability benefits by retirement benefits received by the employee, the
payer shall not recover any overpayment that results from benefits the employee, dependent,
or legal heir has already received under subdivision 2, paragraphs (b) to (d). Notwithstanding
section 176.129, the payer shall not take a credit against an employee's future benefits for
any such overpayment; and
new text end

new text begin (2) if it is determined by a compensation judge, the Workers' Compensation Court of
Appeals, or the Minnesota Supreme Court that the payer is not entitled to reduce the
employee's permanent total disability benefits by retirement benefits received by the
employee, the payer is not entitled to the relief provided in subdivision 4 as applied to the
claim of the specific employee, dependent, or legal heir.
new text end

new text begin (c) A payer shall not assert defenses related to the offset of retirement benefits against
an employee's future permanent total disability benefits if the only additional claims asserted
by the employee under paragraph (b) are for attorney fees, costs and disbursements, and an
additional award pursuant to section 176.081, subdivision 7.
new text end

new text begin Subd. 7. new text end

new text begin Procedure. new text end

new text begin No later than 60 days after final enactment, in consultation with
affected payers, the commissioner must establish a procedure, which may include forms,
to implement this section.
new text end

new text begin Subd. 8. new text end

new text begin Reporting. new text end

new text begin This section does not affect a payer's obligation to report the full
amount of permanent total disability benefits paid to the extent required by this chapter or
other law. A payer must report supplementary benefits as permanent total disability benefits
if the supplementary benefits were paid because the permanent total disability benefits were
reduced by retirement benefits received by the employee.
new text end

new text begin Subd. 9. new text end

new text begin Failure to comply. new text end

new text begin (a) If a payer reports to the department that it has complied
with the requirements of subdivision 2, paragraphs (a) to (d), but the payer has not paid an
employee, dependent, or legal heir, as required by subdivision 2, the payer is subject to the
following:
new text end

new text begin (1) the payer must issue payment to the employee, dependent, or legal heir within 14
days of the date the payer discovers the noncompliance or the date the department notifies
the payer of the noncompliance;
new text end

new text begin (2) the payer is not entitled to the relief provided in subdivisions 3 and 4 as applied to
the claim of the specific employee, dependent, or legal heir who was not paid as required
by subdivision 2;
new text end

new text begin (3) the special compensation fund may immediately begin collection of any assessments
or over-reimbursement owed for the claim;
new text end

new text begin (4) if the commissioner determines that a payer's failure to comply under this subdivision
was not in good faith, the commissioner may assess a penalty, payable to the employee,
dependent, or legal heir, of up to 25 percent of the total permanent total disability benefits
underpaid; and
new text end

new text begin (5) if the payer is found after a hearing to be liable for increased or additional permanent
total disability benefits because the employee's permanent total disability benefits were
improperly reduced by his or her retirement benefits, the compensation judge shall assess
a penalty against the payer, payable to the employee or dependent, up to the total amount
of the permanent total disability benefits that were not paid pursuant to subdivision 2. The
compensation judge may issue a penalty against the payer, up to the total amount of the
permanent total disability benefits underpaid, payable to a legal heir.
new text end

new text begin (b) The penalties assessed under this subdivision are in addition to any other penalty
that may be, or is required to be, assessed under this chapter; however, the commissioner
shall not assess a penalty against a payer for late payment of permanent total disability
benefits if the employee's benefits have been paid and documented in accordance with
subdivision 2.
new text end

new text begin (c) If a payer and the special compensation fund have agreed to a list of employees
required to be paid under subdivision 2, this subdivision does not apply to any claim with
a date of injury before October 1, 1995, that is not on the agreed-upon list.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

WORKERS' COMPENSATION INTERVENTION

Section 1.

Minnesota Statutes 2016, section 176.361, subdivision 2, is amended to read:


Subd. 2.

Written motion.

A person desiring to intervene in a workers' compensation
case as a party, including but not limited to a health care provider who has rendered services
to an employee or an insurer who has paid benefits under section 176.191, shall submit a
timely written motion to intervene to the commissioner, the office, or to the court of appeals,
whichever is applicable.

(a) The motion must be served on all parties, except for other intervenors, either
personally, by first class mail, or by registered mail, return receipt requested. A motion to
intervene must be served and filed within 60 days after a potential intervenor has been
served with notice of a right to intervene or within 30 days of notice of an administrative
conferencenew text begin or expedited hearingnew text end. Upon the filing of a timely motion to intervene, the potential
intervenor shall be granted intervenor status without the need for an order. Objections to
the intervention may be subsequently addressed by a compensation judge. Where a motion
to intervene is not timely filed under this section, the potential intervenor interest shall be
extinguished and the potential intervenor may not collect, or attempt to collect, the
extinguished interest from the employee, employer, insurer, or any government program.

(b) The motion must show how the applicant's legal rights, duties, or privileges may be
determined or affected by the case; state the grounds and purposes for which intervention
is sought; and indicate the statutory right to intervene. The motion must be accompanied
by the following:

(1) an itemization of disability payments showing the period during which the payments
were or are being made; the weekly or monthly rate of the payments; and the amount of
reimbursement claimed;

(2) a summary of the medical or treatment payments, or rehabilitation services provided
by the Vocational Rehabilitation Unit, broken down by creditor, showing the total bill
submitted, the period of treatment or rehabilitation covered by that bill, the amount of
payment on that bill, and to whom the payment was made;

(3) copies of all medical or treatment bills for which payment is sought;

(4) copies of the work sheets or other information stating how the payments on medical
or treatment bills were calculated;

(5) a copy of the relevant policy or contract provisions upon which the claim for
reimbursement is based;

(6) the name and telephone number of the person representing the intervenor who has
authority to represent the intervenor, including but not limited to the authority to reach a
settlement of the issues in dispute;

(7) proof of service or copy of the registered mail receipt evidencing service on all parties
except for other intervenors;

(8) at the option of the intervenor, a proposed stipulation which states that all of the
payments for which reimbursement is claimed are related to the injury or condition in dispute
in the case and that, if the petitioner is successful in proving the compensability of the claim,
it is agreed that the sum be reimbursed to the intervenor; and

(9) if represented by an attorney, the name, address, telephone number, and Minnesota
Supreme Court license number of the attorney.

Sec. 2.

Minnesota Statutes 2016, section 176.361, subdivision 3, is amended to read:


Subd. 3.

Stipulation.

If the person deleted text beginsubmitting thedeleted text endnew text begin filing a timelynew text end motion to intervene
has included a proposed stipulation, all parties shall either execute and return the signed
stipulation to the intervenor who must file it with the division or judge or serve upon the
intervenor and all other parties and file with the division specific and detailed objections to
any new text beginservices rendered or new text endpayments made by the intervenor which are not conceded to be
correct and related to the injury or condition the petitioner has asserted is compensable. If
a party has not returned the signed stipulation or filed specific and detailed objections within
30 days of service of the motion to intervene, the intervenor's right to reimbursement for
the amount sought is deemed established provided that the petitioner's claim is determined
to be compensable. The office may establish procedures for filing objections if a timely
motion to intervene is filed less than 30 days before a scheduled hearing.

Sec. 3.

Minnesota Statutes 2016, section 176.521, is amended by adding a subdivision to
read:


new text begin Subd. 2b. new text end

new text begin Partial settlement. new text end

new text begin (a) The parties may file a partial stipulation for settlement
which resolves the claims of the employee and reserves the claims of one or more intervenors.
If the partial stipulation, or a letter of agreement attached to the partial stipulation, is not
signed by an intervenor, the partial stipulation must include a statement that the parties were
unable to:
new text end

new text begin (1) obtain a response from the nonsigning intervenor regarding clarification or
confirmation of its interest or an offer of settlement within a reasonable time despite
good-faith efforts to obtain a response;
new text end

new text begin (2) reach agreement with the nonsigning intervenor despite the belief that the parties
negotiated with the intervenor in good faith and made a reasonable offer to settle the
intervention claim; or
new text end

new text begin (3) obtain the nonsigning intervenor's signature within a reasonable time after an
agreement was reached with the intervenor.
new text end

new text begin The partial stipulation must include detailed and case-specific support for the parties'
statements. In addition, the partial stipulation must reserve the nonsigning intervenor's
interests to pursue its claim at a hearing on the merits, and must contain a statement that
the employee will cooperate at the hearing.
new text end

new text begin (b) Prior to filing the partial stipulation for approval, a copy of the partial stipulation
must be served on all parties, including the nonsigning intervenor, together with a written
notification that the settling parties intend to file the partial stipulation for approval by a
compensation judge and of the nonsigning intervenor's right to request a hearing on the
merits of the intervenor's claim.
new text end

new text begin (c) Within ten days after service of a partial stipulation for settlement and notice of an
intent to file for approval by a compensation judge, a nonsigning intervenor may serve and
file a written objection to approval of the partial stipulation, which filing must provide a
detailed and case-specific factual basis establishing that approval of the partial stipulation
will adversely impact the rights of the intervenor.
new text end

new text begin (d) After expiration of the ten-day period within which a nonsigning intervenor may
serve and file its written objection, any party may file for approval a partial stipulation for
settlement which conforms with this section. An affidavit of service must accompany the
partial stipulation when it is filed for approval.
new text end

new text begin (e) Unless the compensation judge has a reasonable belief that approval of the partial
stipulation will adversely impact the rights of the nonsigning intervenor, the compensation
judge shall immediately issue the award and file it with the commissioner. The issuance of
the award shall be accompanied by notice to the intervenors and other parties of their right
to request amended findings within a period of 30 days following the date of issuance in
conformity with applicable law.
new text end

new text begin (f) If the compensation judge has a reasonable belief that approval of the partial stipulation
will adversely impact the rights of the intervenor, the compensation judge shall disapprove
the stipulation by written order detailing a factual basis for the determination of adverse
impact.
new text end

Sec. 4. new text beginRULEMAKING.
new text end

new text begin The Office of Administrative Hearings is directed to use the expedited rulemaking
provisions of Minnesota Statutes, section 14.389, to amend Minnesota Rules, part 1420.1850,
to conform to the amendments of Minnesota Statutes, section 176.361, subdivision 3.
new text end

APPENDIX

Repealed Minnesota Statutes: H1366-1

176.541 STATE DEPARTMENTS.

Subd. 7.

Historical Society as state department.

For the purposes of workers' compensation as provided by this chapter, the Minnesota Historical Society is a state department and such chapter applies to its employees the same as it applies to employees of any department of the state government.