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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                        CHAPTER 290--H.F.No. 274
           An act relating to workers' compensation; providing 
          for comprehensive reform of all aspects of workers' 
          compensation; providing penalties; appropriating 
          money; amending Minnesota Statutes 1982, sections 
          43A.23, by adding a subdivision; 79.071, subdivisions 
          1 and 1a; 79.211, subdivision 2; 79.251; 79.34, 
          subdivisions 1, 2, and by adding a subdivision; 79.35; 
          79.37; 79.51, subdivision 3; 79.52, by adding a 
          subdivision; 79.53; 147.02, by adding a subdivision; 
          175.006, subdivision 1; 175.007, subdivision 1; 
          175.08; 175.10; 175.101, subdivisions 1 and 2; 
          176.001; 176.011, subdivision 9, and by adding 
          subdivisions; 176.012; 176.021, subdivisions 1a and 3; 
          176.041, subdivision 1; 176.061; 176.081, subdivisions 
          1, 2, 5, 6, 7, and by adding a subdivision; 176.101, 
          subdivisions 1, 2, 6, and by adding subdivisions; 
          176.102, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 
          11, and by adding subdivisions; 176.105, by adding a 
          subdivision; 176.111, subdivisions 6, 7, 8, and 18, 
          and by adding a subdivision; 176.121; 176.131, 
          subdivisions 1, 1a, 2, 3, 4, 5, 6, 7, and 8; 176.132, 
          subdivision 1, and by adding a subdivision; 176.134, 
          subdivision 4; 176.135, subdivisions 1 and 3; 176.136; 
          176.155, subdivisions 3 and 5; 176.179; 176.181, by 
          adding a subdivision; 176.182; 176.183, subdivisions 
          1, 1a, and by adding subdivisions; 176.185, 
          subdivision 1, and by adding a subdivision; 176.191, 
          by adding subdivisions; 176.195, subdivision 2, and by 
          adding subdivisions; 176.221; 176.225, subdivisions 1, 
          2, and 3; 176.231, subdivisions 3, 4, 5, 9, and 10; 
          176.241, subdivisions 2 and 4; 176.281; 176.285; 
          176.321, subdivision 1; 176.331; 176.341; 176.361; 
          176.371; 176.421, subdivisions 3, 4, 6, and 7; 
          176.442; 176.461; 176.521, subdivisions 2, 2a, and 3; 
          176.561; 176.571, subdivision 6; 176.66, by adding 
          subdivisions; 268.08, subdivision 3; and 471.982, 
          subdivision 2, and by adding a subdivision; Laws 1981, 
          chapter 346, sections 145 and 146; proposing new law 
          coded in Minnesota Statutes, chapters 79; 148; and 
          176; proposing new law coded as Minnesota Statutes, 
          chapter 176A; repealing Minnesota Statutes 1982, 
          sections 8.31, subdivision 4; 79.51, subdivision 2; 
          79.63; 175.07; 175.101, subdivision 3; 175.36; 
          176.101, subdivision 3; 176.102, subdivision 12; 
          176.131, subdivisions 9, 10, 11, and 12; 176.152; and 
          176.262. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 43A.23, is 
amended by adding a subdivision to read:  
    Subd. 3.  [CONTRACT WITH INSURANCE CARRIERS.] The 
commissioner of labor and industry may contract with carriers 
authorized to provide coverage under the state employees group 
insurance plan to extend coverage to eligible employees who 
incur medical expenses due to a personal injury which results 
from their state employment which is compensable under chapter 
176.  
    Sec. 2.  Minnesota Statutes 1982, section 79.071, 
subdivision 1, is amended to read: 
    Subdivision 1.  The commissioner shall adopt a schedule of 
workers' compensation insurance rates for use in this state for 
each classification under which business is written until 
January 1, 1986 1984.  The schedule of rates shall not be 
excessive, inadequate, or unfairly discriminatory.  In adopting 
a schedule of rates, the commissioner may act on the written 
petition of the association or any other interested party 
requesting that a hearing be held for modification of the 
schedule of rates.  The commissioner may include the expense of 
a reasonable charge for the services of an agent of record, for 
the service of rejected risks as set forth in sections 79.24 to 
79.27. 
     Sec. 3.  Minnesota Statutes 1982, section 79.071, 
subdivision 1a, is amended to read:  
    Subd. 1a.  If the legislature enacts amendments to the 
workers' compensation laws of this state which indicate a 
reduction in the schedule of rates, or the commissioner 
determines that the loss experience of Minnesota workers' 
compensation insurers indicates a change in the existing 
schedule of rates, the commissioner may, in his discretion, 
order a change in the schedule of rates or order a hearing to 
determine whether and by what percentage the schedule of rates 
should be changed.  A hearing held pursuant to this subdivision 
is not subject to the contested case proceeding requirements of 
sections 79.071 and 79.072, notwithstanding section 79.076.  The 
commissioner is prohibited from granting approval of any 
proposed increase in rates after May 1, 1983.  
    Sec. 4.  Minnesota Statutes 1982, section 79.211, 
subdivision 2, is amended to read: 
    Subd. 2.  [DIVISION OF PAYROLL.] An insurer shall permit an 
employer to divide his payroll among the rating classifications 
most closely fitting the work actually performed by each 
employee in a four-hour block or more for purposes of premium 
calculation when the employer's records provide adequate support 
for a division. 
    Sec. 5.  Minnesota Statutes 1982, section 79.251, is 
amended to read: 
    79.251 [ADMINISTRATION OF ASSIGNED RISK PLAN.] 
    Subdivision 1.  [ASSIGNED RISK PLAN REVIEW BOARD.] (1) An 
assigned risk plan review board is created for the purposes of 
review of the operation of sections 79.24 to 79.27 6 and 79.251. 
The board shall have all the usual powers and authorities 
necessary for the discharge of its duties under this section and 
may contract with individuals in discharge of those duties.  
    (2) The board shall consist of five six members to be 
appointed by the commissioner of insurance.  Two Three members 
shall be insureds holding policies or contracts of coverage 
issued pursuant to section 79.25 subdivision 4.  Two members 
shall be members of the association insurers licensed pursuant 
to section 60A.06, subdivision 1, clause (5), paragraph (b).  
The commissioner shall be the fifth sixth member and shall vote. 
    Initial appointments shall be made by September 1, 1981, 
and terms shall be for three years duration.  Removal, the 
filling of vacancies and compensation of the members other than 
the commissioner shall be as provided in section 15.059.  
    (3) The assigned risk plan review board shall audit the 
reserves established by insurers (a) for individual cases 
arising under policies and contracts of coverage issued under 
section 79.25 subdivision 4 and (b) for the total book of 
business issued under section 79.25 subdivision 4.  
    (4) The assigned risk plan review board shall monitor the 
operations of sections 79.24 to 79.27 6 and 79.251 and shall 
periodically make recommendations to the commissioner, and to 
the governor and legislature when appropriate, for improvement 
in the operation of those sections.  
    (5) All members of the association insurers and 
self-insurance administrators issuing policies or contracts 
under section 79.25 subdivision 4 shall pay and the commissioner 
shall receive and disburse, on behalf of the board, a .25 
percent assessment on premiums for policies and contracts of 
coverage issued under section 79.25 subdivision 4 for the 
purpose of defraying the costs of the assigned risk plan review 
board.  
    (6) The assigned risk plan and the assigned risk plan 
review board shall not be deemed a state agency.  
    Subd. 2.  [APPROPRIATE MERIT RATING PLAN.] The commissioner 
shall develop an appropriate merit rating plan which shall be 
applicable to all insureds holding policies or contracts of 
coverage issued pursuant to section 79.25 whose premium is less 
than the amount necessary to qualify for experience rating 
subdivision 4 and to the insurers or self-insurance 
administrators issuing those policies or contracts.  The plan 
shall provide a maximum merit payment adjustment equal to ten 
percent of earned premium.  The actual payment adjustment may 
vary with insured's loss experience.  
    Subd. 3.  [RATES.] Insureds served by the assigned risk 
plan shall be charged premiums based upon a rating plan, 
including a merit rating plan adopted by the commissioner by 
rule.  The commissioner shall annually, not later than January 1 
of each year, establish the schedule of rates applicable to 
assigned risk plan business.  Assigned risk premiums shall not 
be lower than rates generally charged by insurers for the 
business.  The commissioner shall fix the compensation received 
by the agent of record.  The establishment of the assigned risk 
plan rates and agent fees are not subject to chapter 14.  
    Subd. 4.  [ADMINISTRATION.] The commissioner shall enter 
into service contracts as necessary or beneficial for 
accomplishing the purposes of the assigned risk plan.  Services 
related to the administration of policies or contracts of 
coverage shall be performed by one or more qualified insurance 
companies licensed pursuant to section 60A.06, subdivision 1, 
clause (5), paragraph (b), or self-insurance administrators 
licensed pursuant to section 176.181, subdivision 2, clause (2), 
paragraph (a).  A qualified insurer or self-insurance 
administrator shall possess sufficient financial, professional, 
administrative, and personnel resources to provide the services 
contemplated in the contract.  Services related to assignments, 
data management, assessment collection, and other services shall 
be performed by a licensed data service organization.  The cost 
of those services is an obligation of the assigned risk plan.  
    Subd. 5.  [ASSESSMENTS.] The commissioner shall assess all 
insurers licensed pursuant to section 60A.06, subdivision 1, 
clause (5), paragraph (b) an amount sufficient to fully fund the 
obligations of the assigned risk plan, if the commissioner 
determines that the assets of the assigned risk plan are 
insufficient to meet its obligations.  The assessment of each 
insurer shall be in a proportion equal to the proportion which 
the amount of compensation insurance written in this state 
during the preceding calendar year by that insurer bears to the 
total compensation insurance written in this state during the 
preceding calendar year by all licensed insurers.  
    Sec. 6.  [79.252] [ASSIGNED RISK PLAN.] 
    Subdivision 1.  [PURPOSE.] The purpose of the assigned risk 
plan is to provide workers' compensation coverage to employers 
rejected by a licensed insurance company, pursuant to 
subdivision 2.  
    Subd. 2.  [REJECTED RISKS.] An insurer that refuses to 
write insurance for an employer shall furnish the employer a 
written notice of refusal.  The employer shall file a copy of 
the notice of refusal with the data service organization under 
contract with the commissioner pursuant to section 79.251, 
subdivision 4.  
    Subd. 3.  [COVERAGE.] Policies and contracts of coverage 
issued pursuant to section 79.251, subdivision 4, shall contain 
the usual and customary provisions of workers' compensation 
insurance policies, and shall be deemed to meet the mandatory 
workers' compensation insurance requirements of section 176.181, 
subdivision 2.  
    Subd. 4.  [RESPONSIBILITIES.] Assigned risk policies and 
contracts of coverage shall be subject to premium tax pursuant 
to section 60A.15, and special compensation fund assessments 
pursuant to section 176.131, subdivision 10.  The assigned risk 
plan shall be a member of the reinsurance association for the 
purposes of sections 79.34 to 79.40 and shall be deemed to have 
selected the higher retention limit provided in section 79.34, 
subdivision 2.  
    Subd. 5.  [RULES.] The commissioner may adopt rules, 
including temporary rules, as may be necessary to implement 
sections 6 and 79.251.  
    Sec. 7.  Minnesota Statutes 1982, section 79.34, 
subdivision 1, is amended to read: 
    Subdivision 1.  A nonprofit association known as the 
workers' compensation reinsurance association is created, which 
may be incorporated under chapter 317 with all the powers of a 
corporation formed under that chapter, except that if the 
provisions of that chapter are inconsistent with sections 79.34 
to 79.40 or any amendments thereto, sections 79.34 to 79.40 
shall govern.  Each insurer as defined by section 79.01, 
subdivision 2, shall as a condition of its authority to transact 
workers' compensation insurance in this state, be a member of 
the reinsurance association and shall be bound by the plan of 
operation of the reinsurance association; provided, that all 
affiliated insurers within a holding company system as defined 
in sections 60D.01 to 60D.13 shall be considered a single entity 
for purposes of the exercise of all rights and duties of 
membership in the reinsurance association.  Each self-insurer 
approved pursuant to section 176.181 and each political 
subdivision which self-insures shall, as a condition of its 
authority to self-insure workers' compensation liability in this 
state, be a member of the reinsurance association and shall be 
bound by its plan of operation; provided, that (a) all 
affiliated companies within a holding company system, as 
determined by the commissioner in a manner consistent with the 
standards and definitions in sections 60D.01 to 60D.13, shall be 
considered a single entity for purposes of the exercise of all 
rights and duties of membership in the reinsurance association, 
and (b) all group self-insurers granted authority to self-insure 
pursuant to section 176.181 shall be considered a single entity 
for purposes of the exercise of all the rights and duties of 
membership in the reinsurance association.  As a condition of 
its authority to self-insure workers' compensation liability, 
and for losses incurred on or after January 1, 1984, the state 
shall be a member of the reinsurance association and is bound by 
its plan of operation.  The commissioner of labor and industry 
represents the state in the exercise of all the rights and 
duties of membership in the reinsurance association.  The state 
treasurer shall pay the premium to the reinsurance association 
from the state compensation revolving fund upon warrants of the 
commissioner of labor and industry.  For the purposes of this 
section "state" means the administrative branch of state 
government, the legislative branch, the judicial branch, the 
University of Minnesota, and any other entity whose workers' 
compensation liability is paid from the state revolving fund. 
The commissioner may calculate, prorate, and charge a department 
or agency the portion of premiums paid to the reinsurance 
association for employees who are paid wholly or in part by 
federal funds, dedicated funds, or special revenue funds.  The 
reinsurance association shall is not be deemed a state agency.  
Actions of the reinsurance association and its board of 
directors and actions of the commissioner of insurance with 
respect to the reinsurance association shall are not be subject 
to chapter chapters 13, 14, and 15.  The reinsurance association 
shall be is exempt from taxation under the laws of this state 
and all property owned by the association shall be is exempt 
from taxation.  The reinsurance association shall is not be 
obligated to make any payments or pay any assessments to any 
funds or pools established pursuant to this chapter or chapter 
176 or any other law. 
    Sec. 8.  Minnesota Statutes 1982, section 79.34, 
subdivision 2, is amended to read:  
    Subd. 2.  The reinsurance association shall provide and 
each member shall accept indemnification for 100 percent of the 
amount of ultimate loss sustained in each loss occurrence 
relating to one or more claims arising out of a single 
compensable event, including aggregate losses related to a 
single event or occurrence which constitutes a single loss 
occurrence, under chapter 176 on and after October 1, 1979, in 
excess of $300,000 or $100,000 retention limit, at the option of 
the member.  In case of occupational disease causing disablement 
on and after October 1, 1979, each person suffering such 
disablement shall be due to occupational disease is considered 
to be involved in a separate loss occurrence.  The lesser lower 
retention limit shall be increased to the nearest $10,000, on 
January 1, 1982 and on each January 1 thereafter by the 
percentage increase in the statewide average weekly wage, as 
determined in accordance with section 176.011, subdivision 20.  
On January 1, 1982 and on each January 1 thereafter, the greater 
higher retention limit shall be increased by the amount 
necessary to retain a $200,000 difference between the two 
retention limits.  Ultimate loss as used in this section means 
the actual loss amount which a member is obligated to pay and 
which is paid by the member for workers' compensation benefits 
payable under chapter 176 and shall not include claim expenses, 
assessments, damages or penalties.  For losses incurred on or 
after January 1, 1979, any amounts paid by a member pursuant to 
sections 176.183, 176.221, 176.225, and 176.82 shall not be 
included in ultimate loss and shall not be indemnified by the 
reinsurance association.  A loss is incurred by the reinsurance 
association on the date on which the accident or other 
compensable event giving rise to the loss occurs, and a member 
is liable for a loss up to its retention limit in effect at the 
time that the loss was incurred, except that members which are 
determined by the reinsurance association to be controlled by or 
under common control with another member, and which are liable 
for claims from one or more employees entitled to compensation 
for a single compensable event, including aggregate losses 
relating to a single loss occurrence, may aggregate their losses 
and obtain indemnification from the reinsurance association for 
the aggregate losses in excess of the higher retention limit in 
effect at the time the loss was incurred.  Each member is liable 
for payment of its ultimate loss and shall be entitled to 
indemnification from the reinsurance association for the 
ultimate loss in excess of the member's retention limit in 
effect at the time of the loss occurrence. 
     A member that chooses the higher retention limit shall 
retain the liability for all losses below the higher retention 
limit itself and shall not transfer the liability to any other 
entity or reinsure or otherwise contract for reimbursement or 
indemnification for losses below its retention limit, except in 
the following cases:  (a) when the reinsurance or contract is 
with another member which, directly or indirectly, through one 
or more intermediaries, control or are controlled by or are 
under common control with the member; (b) when the reinsurance 
or contract provides for reimbursement or indemnification of a 
member if and only if the total of all claims which the member 
pays or incurs, but which are not reimbursable or subject to 
indemnification by the reinsurance association for a given 
period of time, exceeds a dollar value or percentage of premium 
written or earned and stated in the reinsurance agreement or 
contract; (c) when the reinsurance or contract is a pooling 
arrangement with other insurers where liability of the member to 
pay claims pursuant to chapter 176 is incidental to 
participation in the pool and not as a result of providing 
workers' compensation insurance to employers on a direct basis 
under chapter 176; (d) when the reinsurance or contract is 
limited to all the claims of a specific insured of a member 
which are reimbursed or indemnified by a reinsurer which, 
directly or indirectly, through one or more intermediaries, 
controls or is controlled by or is under common control with the 
insured of the member so long as any subsequent contract or 
reinsurance of the reinsurer relating to the claims of the 
insured of a member is not inconsistent with the bases of 
exception provided under clauses (a), (b) and (c) above; or (e) 
when the reinsurance or contract is limited to all claims of a 
specific self-insurer member which are reimbursed or indemnified 
by a reinsurer which, directly or indirectly, through one or 
more intermediaries, controls or is controlled by or is under 
common control with the self-insurer member so long as any 
subsequent contract or reinsurance of the reinsurer relating to 
the claims of the self-insurer member are not inconsistent with 
the bases for exception provided under clauses (a), (b) and (c) 
above.  
     Whenever it appears to the commissioner that any member 
that chooses the higher retention limit has participated in the 
transfer of liability to any other entity or reinsured or 
otherwise contracted for reimbursement or indemnification of 
losses below its retention limit in a manner inconsistent with 
the bases for exception provided under clauses (a), (b), (c), 
(d), and (e), the commissioner may, after giving notice and an 
opportunity to be heard, order the member to pay to the state of 
Minnesota an amount not to exceed twice the difference between 
the reinsurance premium for the higher and lower retention limit 
applicable to the member for each year in which the prohibited 
reinsurance or contract was in effect.  Any member subject to 
this penalty provision shall continue to be bound by its 
selection of the higher retention limit for purposes of 
membership in the reinsurance association.  
    Sec. 9.  Minnesota Statutes 1982, section 79.34, is amended 
by adding a subdivision to read:  
    Subd. 7.  For losses incurred on or after January 1, 1984, 
the reinsurance association shall indemnify the member for the 
ultimate loss, in excess of the retention limit in effect at the 
time of the loss occurrence, sustained in each loss occurrence 
relating to one or more claims arising out of a single 
compensable event in another state provided that:  
    (a) the injured worker is eligible for benefits under 
section 176.041, subdivision 2 or 3, but elects to receive 
benefits under the workers' compensation statute of another 
state in lieu of benefits under chapter 176; and 
    (b) the ultimate loss indemnified by the reinsurance 
association shall be determined as provided in this chapter, 
except that the benefits shall be equal to those required to be 
paid under the workers' compensation statute of the state 
elected.  
    Sec. 10.  Minnesota Statutes 1982, section 79.35, is 
amended to read:  
     79.35 [DUTIES; RESPONSIBILITIES; POWERS.] 
     The reinsurance association shall do the following on 
behalf of its members: 
     (a) Assume 100 percent of the liability as provided in 
section 79.34; 
     (b) Establish procedures by which members shall promptly 
report to the reinsurance association each claim which, on the 
basis of the injury sustained, may reasonably be anticipated to 
involve liability to the reinsurance association if the member 
is held liable under chapter 176.  Solely for the purpose of 
reporting claims, the member shall in all instances consider 
itself legally liable for the injury.  The member shall advise 
the reinsurance association of subsequent developments likely to 
materially affect the interest of the reinsurance association in 
the claim; 
     (c) Maintain relevant loss and expense data relative to all 
liabilities of the reinsurance association and require each 
member to furnish statistics in connection with liabilities of 
the reinsurance association at the times and in the form and 
detail as may be required by the plan of operation; 
     (d) Calculate and charge to members a total premium 
sufficient to cover the expected liability which the reinsurance 
association will incur in excess of the higher retention limit 
but less than the prefunded limit, together with incurred or 
estimated to be incurred operating and administrative expenses 
for the period to which this premium applies and actual claim 
payments to be made by members, during the period to which this 
premium applies, for claims in excess of the prefunded limit in 
effect at the time the loss was incurred.  The prefunded limit 
shall be $2,500,000 on and after October 1, 1979, provided that 
the prefunded limit shall be increased on January 1, 1983 and on 
each January 1 thereafter by the percentage increase in the 
statewide average weekly wage, to the nearest $100,000, as 
determined in accordance with section 176.011, subdivision 20.  
Each member shall be charged a proportion of the total premium 
in an amount equal to its proportion of the total standard 
earned premium exposure base of all members during the period to 
which the reinsurance association premium will apply, as 
determined by the commissioner.  The exposure base shall be 
determined by the board and is subject to the approval of the 
commissioner.  In determining the exposure base, the board shall 
consider, among other things, equity, administrative 
convenience, records maintained by members, amenability to 
audit, and degree of risk refinement.  Each member exercising 
the lower retention option shall also be charged a premium 
established by the board as sufficient to cover incurred or 
estimated to be incurred claims for the liability the 
reinsurance association is likely to incur between the lower and 
higher retention limits for the period to which the premium 
applies.  Each member shall also be charged a premium determined 
by the board to equitably distribute excess or deficient 
premiums from previous periods including any excess or deficient 
premiums resulting from a retroactive change in the prefunded 
limit.  An equitable basis for determining standard earned 
premium for self-insurers shall be established by the 
commissioner.  The premiums charged to members shall not be 
unfairly discriminatory as defined in section 79.074.  All 
premiums shall be approved by the commissioner; 
    (e) Require and accept the payment of premiums from members 
of the reinsurance association; 
    (f) Receive and distribute all sums required by the 
operation of the reinsurance association; 
    (g) Establish procedures for reviewing claims procedures 
and practices of members of the reinsurance association.  If the 
claims procedures or practices of a member are considered 
inadequate to properly service the liabilities of the 
reinsurance association, the reinsurance association may 
undertake, or may contract with another person, including 
another member, to adjust or assist in the adjustment of claims 
which create a potential liability to the association and.  The 
reinsurance association may charge the cost of the adjustment 
under this paragraph to the member, except that any penalties or 
interest incurred under sections 176.183, 176.221, 176.225, and 
176.82 as a result of actions by the reinsurance association 
after it has undertaken adjustment of the claim shall not be 
charged to the member but shall be included in the ultimate loss 
and listed as a separate item; and 
    (h) Provide each member of the reinsurance association with 
an annual report of the operations of the reinsurance 
association in a form the board of directors may specify. 
    Sec. 11.  Minnesota Statutes 1982, section 79.37, is 
amended to read: 
    79.37 [BOARD OF DIRECTORS.] 
    A board of directors of the reinsurance association is 
created and shall be is responsible for the operation of the 
reinsurance association consistent with the plan of operation 
and sections 79.34 to 79.42.  The board shall consist consists 
of nine 13 directors and the commissioner commissioners of 
insurance and labor and industry who shall be an ex officio 
member members.  Four members of the board shall represent 
insurers, three six members of the board shall represent 
employers, at least one, but not more than two three, of whom 
shall represent self-insurers, and two three members of the 
board shall represent employees.  Members shall elect the 
insurer directors, and the commissioner of insurance shall 
appoint the employer and employee directors from a list 
presented to the commissioner by the workers' compensation 
advisory council established in chapter 175, for the terms 
authorized in the plan of operation.  Each board member shall be 
is entitled to one vote.  Terms of the directors shall be 
staggered so that the terms of all the directors do not expire 
at the same time and so that a director does not serve a term of 
more than four years.  The board shall select a chairman and 
other officers it deems appropriate. 
    A majority of the board shall constitute constitutes a 
quorum, notwithstanding any vacancies.  Action may be taken by a 
majority vote of the directors present. 
    Sec. 12.  Minnesota Statutes 1982, section 79.51, 
subdivision 3, is amended to read: 
    Subd. 3.  [RULES; SUBJECT MATTER.] (a) The commissioner in 
issuing rules shall consider:  
    (1) data reporting requirements, including types of data 
reported, such as loss and expense data;  
    (2) experience rating plans;  
    (3) retrospective rating plans;  
    (4) general expenses and related expense provisions;  
    (5) minimum premiums;  
    (6) classification systems and assignment of risks to 
classifications;  
    (7) loss development and trend factors;  
    (8) the workers' compensation reinsurance association;  
    (9) restrictions, prohibitions, and requirements with 
respect to the activities of the workers' compensation insurers 
rating association of Minnesota during the period from July 1, 
1983 to January 1, 1986;  
    (10) requiring substantial compliance with the rules 
mandated by this section as a condition of workers' compensation 
carrier licensure;  
    (11) (10) imposing limitations on the functions of workers' 
compensation data service organizations consistent with the 
introduction of competition;  
    (12) (11) the rules contained in the workers' compensation 
rating manual adopted by the workers' compensation insurers 
rating association; and 
    (13) (12) any other factors that the commissioner deems 
relevant to achieve the purposes of chapter 79.  
    (b) The rules shall provide for the following:  
    (1) competition in workers' compensation insurance rates in 
such a way that the advantages of competition are introduced 
with a minimum of employer hardship during the transition period;
    (2) adequate safeguards against excessive or discriminatory 
rates in workers' compensation during the transition period;  
    (3) encouragement of workers' compensation insurance rates 
which are as low as reasonably necessary, but shall make 
provision against inadequate rates, insolvencies and unpaid 
benefits;  
    (4) assurances that employers are not unfairly relegated to 
the assigned risk pool;  
    (5) requiring all appropriate data and other information 
from insurers for the purpose of issuing rules and, making 
legislative recommendations pursuant to this section and 
monitoring the effectiveness of competition; and 
    (6) preserving a framework for risk classification, data 
collection, and other appropriate joint insurer services where 
these will not impede the introduction of competition in premium 
rates.  
    (c) The rules shall expire on January 1, 1986.  
    Sec. 13.  Minnesota Statutes 1982, section 79.52, is 
amended by adding a subdivision to read:  
    Subd. 16.  [ATTORNEY'S FEES.] No loss adjustment expense 
used to pay attorney fees or other costs in defense of a 
workers' compensation claim shall be charged to an insured in a 
merit rating plan or to a plan under section 79.251, subdivision 
2.  
    Sec. 14.  Minnesota Statutes 1982, section 79.53, is 
amended to read: 
    79.53 [PREMIUM CALCULATION.] 
    Subdivision 1.  [METHOD OF CALCULATION.] Each insurer shall 
establish premiums to be paid by an employer according to its 
filed rates and rating plan as follows: 
    Rates shall be applied to an exposure base to yield a base 
premium which may be further modified by merit rating, premium 
discounts, and other appropriate factors contained in the rating 
plan of an insurer to produce premium.  Nothing in this chapter 
shall be deemed to prohibit the use of any premium, provided the 
premium is not excessive, inadequate or unfairly discriminatory. 
    Subd. 2.  [STUDY; REPORT.] The commissioner of insurance 
shall conduct a comparative actuarial study of the exposure 
bases of employers located within and outside of the seven 
county metropolitan area.  In addition to the factors required 
to be considered by a data service organization under section 
79.61, subdivision 1, the study shall include the activity 
permitted under section 79.61, subdivision 2, and specifically, 
shall include a comparative study of the incidence of litigation 
in relationship to first reports of injuries as between 
employers within and outside the metropolitan area.  
    For the purposes of this section, "metropolitan area" has 
the meaning as defined in section 473.121, subdivision 2.  
    A report on the study shall be made by the commissioner to 
the legislature by January 15, 1984.  
    Sec. 15.  Laws 1981, chapter 346, section 145, is amended 
to read: 
    Sec. 145.  [REPEALER.] 
    Minnesota Statutes 1980, Sections 79.071, Subdivision 1; 
79.074, Subdivision 1; 79.075; 79.076; 79.08; 79.09; 79.11; 
79.12; 79.13; 79.14; 79.15; 79.16; 79.17; 79.171; 79.18; 79.19; 
79.20; 79.21; 79.22, Subdivision 1; 79.221; 79.23; 79.24; 79.25; 
and 79.26; 79.27; 79.28; 79.29; 79.30; 79.31; 79.32; and 79.33 
are repealed effective July 1, 1983.  Minnesota Statutes 1980, 
Sections 79.071, Subdivisions 2, 3, 4, 5, 6, and 7; 79.072; and 
79.073; 79.074, Subdivision 1; 79.075; 79.076; 79.08; 79.09; 
79.11; 79.12; 79.13; 79.14; 79.15; 79.16; 79.17; 79.171; 79.18; 
79.19; 79.20; 79.21; 79.22, Subdivision 1; 79.221; 79.23; 79.27; 
79.28; 79.29; 79.30; 79.31; 79.32; and 79.33 are repealed 
effective January 1, 1986 1984.  Minnesota Statutes 1980, 
Sections 175.006, Subdivisions 1a and 2; 175.0061; 175.09; 
176.111, Subdivision 11; and 176.441, Subdivision 2, are 
repealed.  
    Sec. 16.  Laws 1981, chapter 346, section 146, is amended 
to read:  
    Sec. 146.  [EFFECTIVE DATE.] 
    Sections 11, 21, 22, 23, 35, 36, 37, 38, 53, 54, 141, and 
142 are effective the day following enactment.  Sections 1 to 8, 
12, 39 to 52, 55 to 95, 99 to 138, 140, and 143 to 145 are 
effective July 1, 1981.  Sections 96 to 98 are effective October 
1, 1981.  Sections 9, 10, and 13 to 20 are effective January 1, 
1982.  Sections 24 30 to 34 are effective July 1, 1983.  
Sections 24 to 29 are effective January 1, 1984.  Section 139 is 
effective retroactively to April 12, 1980. 
    Sec. 17.  Minnesota Statutes 1982, section 147.02, is 
amended by adding a subdivision to read:  
    Subd. 4.  [CONTINUING EDUCATION.] The board shall adopt 
rules requiring continuing education for physicians, surgeons, 
and osteopaths licensed under this chapter who regularly 
practice in the area of workers' compensation.  These rules 
shall include rules relating to continuing education designed to 
assure the coordination of treatment, rehabilitation, and other 
medical services provided to injured employees under chapter 
176.  Rules relative to education regarding treatment under 
chapter 176 shall be adopted jointly with the commissioner of 
labor and industry.  These rules shall be consistent with 
section 214.12.  
    Sec. 18.  [148.031] [CONTINUING EDUCATION.] 
    The board shall adopt rules requiring continuing education 
for chiropractors licensed under this chapter who regularly 
practice in the area of workers' compensation.  These rules 
shall include rules relating to continuing education designed to 
assure the coordination of treatment, rehabilitation, and other 
chiropractic services provided to injured employees under 
chapter 176.  Rules relative to education under chapter 176 
shall be adopted jointly with the commissioner of labor and 
industry.  These rules shall be consistent with section 214.12.  
    Sec. 19.  Minnesota Statutes 1982, section 175.006, 
subdivision 1, is amended to read:  
    Subdivision 1.  [CREATION AND ORGANIZATION.] The division 
of workers' compensation, generally administering the workers' 
compensation law, is created within the department of labor and 
industry.  There is created as a separate appellate tribunal for 
workers' compensation, the workers' compensation court of 
appeals.  
    The workers' compensation court of appeals shall be 
composed of five judges each serving in the unclassified service 
of the state civil service.  Of the five judges, at least three 
shall be learned in the law.  Each judge of the workers' 
compensation court of appeals shall be appointed by the 
governor, by and with the advice and consent of the senate, for 
a term of six years.  The judges of the workers' compensation 
court of appeals as now created shall be the judges of the 
workers' compensation court of appeals until the expiration of 
the terms for which they have been appointed and qualified.  
    Sec. 20.  Minnesota Statutes 1982, section 175.007, 
subdivision 1, is amended to read:  
    Subdivision 1.  The commissioner shall appoint an advisory 
council on workers' compensation, which shall consist consists 
of five representatives of employers and five representatives of 
employees and three five nonvoting members representing the 
general public.  The council may consult with the judges of the 
workers' compensation court of appeals any party it desires.  
The council shall expire and the terms, compensation and removal 
of members shall be as provided in section 15.059.  The council 
is not subject to section 15.059, subdivision 5.  
    Sec. 21.  Minnesota Statutes 1982, section 175.08, is 
amended to read: 
    175.08 [OFFICE.] 
    The workers' compensation court of appeals and the 
department of labor and industry shall maintain their its main 
offices office within the Minneapolis-Saint Paul metropolitan 
area and be provided by the commissioner of administration with 
suitable rooms and necessary furniture.  The offices of the 
workers' compensation court of appeals and the department of 
labor and industry shall be in separate buildings.  They It may 
hold sessions at any other place in the state when their 
convenience and that of the parties interested so requires it is 
convenient. 
    Sec. 22.  Minnesota Statutes 1982, section 175.10, is 
amended to read: 
    175.10 [SESSIONS TO BE PUBLIC.] 
    The department of labor and industry shall be open for the 
transaction of business during all business hours of each and 
every day, excepting Saturdays, Sundays and legal holidays.  The 
hearings of the workers' compensation court of appeals and the 
workers' compensation division shall be are open to the public 
and may be adjourned from time to time.  All the proceedings of 
the workers' compensation court of appeals and the division 
shall be shown on their its records, which shall be are public 
records. 
    Sec. 23.  Minnesota Statutes 1982, section 175.101, 
subdivision 1, is amended to read: 
    Subdivision 1.  It is the legislative purpose in creating a 
division of workers' compensation, and in assigning to the 
commissioner of the department of labor and industry specific 
duties and responsibilities, to: 
    (a) provide for a unified department of labor and industry 
for the limited purposes of organization and administration of 
common administrative functions; and 
    (b) assure the autonomy and maximum independence of the 
necessary adjudicative functions and quasi-legislative 
administrative duties of the division, and;  
    (c) separate and limit the functions and responsibilities 
of the existing workers' compensation court of appeals to those 
appropriate to an independent appellate reviewing body.  
    The commissioner of the department of labor and industry as 
head of the workers' compensation division is the administrator 
of the workers' compensation division.  He The commissioner 
shall possess only such the powers and shall perform only such 
the duties as are specifically prescribed by law. 
    Sec. 24.  Minnesota Statutes 1982, section 175.101, 
subdivision 2, is amended to read: 
    Subd. 2.  The commissioner of the department of labor and 
industry shall keep a full and true record of all proceedings of 
the workers' compensation division and the workers' compensation 
court of appeals, issue all necessary processes, writs, 
warrants, and notices which the division or workers' 
compensation court of appeals are is required or authorized to 
issue and generally act as the administrator of the division of 
workers' compensation in the department of labor and industry.  
Notices and other documents required to be served or filed on 
the division of workers' compensation or the workers' 
compensation court of appeals shall be served on the 
commissioner of the department of labor and industry. 
    Sec. 25.  Minnesota Statutes 1982, section 176.001, is 
amended to read: 
    176.001 [INTENT OF THE LEGISLATURE.] 
    It is the intent of the legislature that chapter 176 be 
interpreted so as to assure the quick and efficient delivery of 
indemnity and medical benefits to injured workers at a 
reasonable cost to the employers who are subject to the 
provisions of chapter 176.  It is the specific intent of the 
legislature that workers' compensation cases shall be decided on 
their merits and that the common law rule of "liberal 
construction" based on the supposed "remedial" basis of workers' 
compensation legislation shall not apply in such cases.  The 
workers' compensation system in Minnesota is based on a mutual 
renunciation of common law rights and defenses by employers and 
employees alike.  Employees' rights to sue for damages over and 
above medical and health care benefits and wage loss benefits 
are to a certain degree limited by the provisions of this 
chapter, and employers' rights to raise common law defenses such 
as lack of negligence, contributory negligence on the part of 
the employee, and others, are curtailed as well.  Accordingly, 
the legislature hereby declares that the workers' compensation 
laws are not remedial in any sense and are not to be given a 
broad liberal construction in favor of the claimant or employee 
on the one hand, nor are the rights and interests of the 
employer to be favored over those of the employee on the other 
hand.  
    Sec. 26.  Minnesota Statutes 1982, section 176.011, 
subdivision 9, is amended to read: 
    Subd. 9.  [EMPLOYEE.] "Employee" means any person who 
performs services for another for hire; and includes the 
following: 
    (1) an alien; 
    (2) a minor; 
    (3) a sheriff, deputy sheriff, constable, marshal, 
policeman, firefighter, a county highway engineer, and a peace 
officer while engaged in the enforcement of peace or in and 
about the pursuit or capture of any person charged with or 
suspected of crime and any person requested or commanded to aid 
an officer in arresting any person, or in retaking any person 
who has escaped from lawful custody, or in executing any legal 
process in which case, for purposes of calculating compensation 
payable under this chapter, the daily wage of the person 
requested or commanded to assist an officer or to execute a 
legal process shall be the prevailing wage for similar services 
where the services are performed by paid employees; 
     (4) a county assessor; 
     (5) an elected or appointed official of the state, or of 
any county, city, town, school district or governmental 
subdivision therein but an officer of a political subdivision 
elected or appointed for a regular term of office or to complete 
the unexpired portion of any such regular term, shall be 
included only after the governing body of the political 
subdivision has adopted an ordinance or resolution to that 
effect; 
     (6) an executive officer of a corporation except an officer 
of a family farm corporation as defined in section 500.24, 
subdivision 1, clause (c), nor shall it include an executive 
officer of a closely held corporation who is referred to in 
section 176.012; 
     (7) a voluntary uncompensated worker, other than an inmate, 
rendering services in state institutions under the commissioner 
of public welfare and state institutions under the commissioner 
of corrections similar to those of officers and employees of 
these institutions, and whose services have been accepted or 
contracted for by the commissioner of public welfare or the 
commissioner of corrections as authorized by law, shall be 
employees within the meaning of this subdivision.  In the event 
of injury or death of the voluntary uncompensated worker, the 
daily wage of the worker, for the purpose of calculating 
compensation payable under this chapter, shall be the usual 
going wage paid at the time of the injury or death for similar 
services in institutions where the services are performed by 
paid employees; 
     (8) a voluntary uncompensated worker engaged in peace time 
in the civil defense program when ordered to training or other 
duty by the state or any political subdivision thereof, shall be 
an employee.  The daily wage of the worker for the purpose of 
calculating compensation payable under this chapter, shall be 
the usual going wage paid at the time of the injury or death for 
similar services where the services are performed by paid 
employees; 
     (9) a voluntary uncompensated worker participating in a 
program established by a county welfare board shall be an 
employee within the meaning of this subdivision.  In the event 
of injury or death of the voluntary uncompensated worker, the 
wage of the worker, for the purpose of calculating compensation 
payable under this chapter, shall be the usual going wage paid 
in the county at the time of the injury or death for similar 
services where the services are performed by paid employees 
working a normal day and week; 
     (10) a voluntary uncompensated worker accepted by the 
commissioner of natural resources who is rendering services as a 
volunteer pursuant to section 84.089 shall be an employee.  The 
daily wage of the worker for the purpose of calculating 
compensation payable under this chapter, shall be the usual 
going wage paid at the time of injury or death for similar 
services where the services are performed by paid employees; 
     (11) a member of the military forces, as defined in section 
190.05, while in "active service" or "on duty" as defined in 
section 190.05, when the service or duty is ordered by state 
authority.  The daily wage of the member for the purpose of 
calculating compensation payable under this chapter shall be 
based on the member's usual earnings in civil life.  If there is 
no evidence of previous occupation or earning, the trier of fact 
shall consider the member's earnings as a member of the military 
forces; 
     (12) a voluntary uncompensated worker, accepted by the 
director of the Minnesota historical society, rendering services 
as a volunteer, pursuant to chapter 138, shall be an employee.  
The daily wage of the worker, for the purposes of calculating 
compensation payable under this chapter, shall be the usual 
going wage paid at the time of injury or death for similar 
services where the services are performed by paid employees; 
     (13) a voluntary uncompensated worker, other than a 
student, who renders services at the Minnesota School for the 
Deaf or the Minnesota Braille and Sight-Saving School, and whose 
services have been accepted or contracted for by the state board 
of education, as authorized by law, shall be an employee within 
the meaning of this subdivision.  In the event of injury or 
death of the voluntary uncompensated worker, the daily wage of 
the worker, for the purpose of calculating compensation payable 
under this chapter, shall be the usual going wage paid at the 
time of the injury or death for similar services in institutions 
where the services are performed by paid employees; 
     (14) a voluntary uncompensated worker, other than a 
resident of the veterans home, who renders services at a 
Minnesota veterans home, and whose services have been accepted 
or contracted for by the commissioner of veterans affairs, as 
authorized by law, is an employee within the meaning of this 
subdivision.  In the event of injury or death of the voluntary 
uncompensated worker, the daily wage of the worker, for the 
purpose of calculating compensation payable under this chapter, 
shall be the usual going wage paid at the time of the injury or 
death for similar services in institutions where the services 
are performed by paid employees;  
     (15) a worker who renders in-home attendant care services 
to a physically handicapped person, and who is paid directly by 
the commissioner of public welfare for these services, shall be 
an employee of the state within the meaning of this subdivision, 
but for no other purpose; and 
    (16) those students enrolled in and regularly attending the 
medical school of the University of Minnesota, whether in the 
graduate school program or the post-graduate program, as 
provided in section 147.20, notwithstanding that the students 
shall not be considered employees for any other purpose.  In the 
event of the student's injury or death, the weekly wage of the 
student for the purpose of calculating compensation payable 
under chapter 176, shall be the annualized educational stipend 
awarded to the student, divided by 52 weeks.  The institution in 
which the student is enrolled shall be considered the "employer" 
for the limited purpose of determining responsibility for paying 
benefits payable under chapter 176.  
    In the event it is difficult to determine the daily wage as 
provided in this subdivision, then the trier of fact may 
determine the wage upon which the compensation is payable. 
    Sec. 27.  Minnesota Statutes 1982, section 176.011, is 
amended by adding a subdivision to read: 
    Subd. 23.  [RETRAINING.] "Retraining" means a formal course 
of study in a school setting which is designed to train an 
employee to return to suitable gainful employment.  
    Sec. 28.  Minnesota Statutes 1982, section 176.011, is 
amended by adding a subdivision to read: 
    Subd. 24.  [HEALTH CARE PROVIDER.] "Health care provider" 
means a physician, podiatrist, chiropractor, dentist, 
optometrist, osteopath, psychologist, psychiatric social worker, 
or any other person who furnishes a medical or health service to 
an employee under this chapter but does not include a qualified 
rehabilitation consultant or approved vendor.  
    Sec. 29.  Minnesota Statutes 1982, section 176.011, is 
amended by adding a subdivision to read:  
    Subd. 25.  [MAXIMUM MEDICAL IMPROVEMENT.] "Maximum medical 
improvement" means the date after which no further significant 
recovery from or significant lasting improvement to a personal 
injury can reasonably be anticipated, based upon reasonable 
medical probability.  
    Sec. 30.  Minnesota Statutes 1982, section 176.011, is 
amended by adding a subdivision to read:  
    Subd. 26.  [MONITORING PERIOD.] "Monitoring period" means 
the number of weeks during which economic recovery compensation 
pursuant to section 176.101, subdivision 3a, would have been 
paid if that compensation were payable.  
    Sec. 31.  Minnesota Statutes 1982, section 176.012, is 
amended to read:  
    176.012 [ELECTION OF COVERAGE.] 
    The persons, partnerships and corporations described in 
this section may elect to provide the insurance coverage 
required by this chapter.  
    (a) An owner or owners of a business or farm may elect 
coverage for themselves.  
    (b) A partnership owning a business or farm may elect 
coverage for any partner.  
    (c) A family farm corporation as defined in section 500.24, 
subdivision 2, clause (c) may elect coverage for any executive 
officer.  
    (d) A closely held corporation which had less than 22,880 
hours of payroll in the previous calendar year may elect 
coverage for any executive officer if that executive officer is 
also an owner of at least 25 percent of the stock of the 
corporation.  
    (e) A person, partnership, or corporation hiring an 
independent contractor, as defined by rules adopted by the 
commissioner, may elect to provide coverage for that independent 
contractor.  
     The persons, partnerships and corporations described in 
this section may also elect coverage for an employee who is a 
spouse, parent or child, regardless of age, of an owner, 
partner, or executive officer, who is eligible for coverage 
under this section.  Coverage may be elected for a spouse, 
parent or child whether or not coverage is elected for the 
related owner, partner or executive director and whether or not 
the person, partnership or corporation employs any other person 
to perform a service for hire.  Any person for whom coverage is 
elected pursuant to this section shall be included within the 
meaning of the term employee for the purposes of this chapter. 
     Notice of election of coverage or of termination of 
election under this section shall be provided in writing to the 
insurer.  Coverage or termination of coverage is effective the 
day following receipt of notice by the insurer or at a 
subsequent date if so indicated in the notice.  The insurance 
policy shall be endorsed to indicate the names of those persons 
for whom coverage has been elected or terminated under this 
section.  An election of coverage under this section shall 
continue in effect as long as a policy or renewal policy of the 
same insurer is in effect.  
    Nothing in this section shall be construed to limit the 
responsibilities of owners, partnerships or corporations to 
provide coverage for their employees, if any, as required under 
this chapter. 
    Sec. 32.  Minnesota Statutes 1982, section 176.021, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [BURDEN OF PROOF.] All disputed issues of fact 
arising under chapter 176 shall be determined by a preponderance 
of the evidence, and in accordance with the principles laid down 
in section 176.001.  Preponderance of the evidence means 
evidence produced in substantiation of a fact which, when 
weighed against the evidence opposing the fact, has more 
convincing force and greater probability of truth.  
    Questions of law arising under chapter 176 shall be 
determined in accordance with the rules of construction 
generally applied to all other civil matters on an even-handed 
basis in accordance with the principles laid down in section 
176.001. 
    Sec. 33.  Minnesota Statutes 1982, section 176.021, 
subdivision 3, is amended to read: 
    Subd. 3.  [COMPENSATION, COMMENCEMENT OF PAYMENT.] All 
employers shall commence payment of compensation at the time and 
in the manner prescribed by this chapter without the necessity 
of any agreement or any order of the division.  Except for 
medical, burial, and other nonperiodic benefits, payments shall 
be made as nearly as possible at the intervals when the wage was 
payable, provided, however, that payments for permanent partial 
disability shall be governed by subdivision 3a section 176.101.  
If doubt exists as to the eventual permanent partial disability, 
payment for the economic recovery compensation or impairment 
compensation, whichever is due, pursuant to subdivision 3a 
section 176.101, shall be then made when due for the minimum 
permanent partial disability ascertainable, and further payment 
shall be made upon any later ascertainment of greater permanent 
partial disability.  Prior to or at the time of any tender 
commencement of the lump sum payment of economic recovery 
compensation or lump sum or periodic payment of impairment 
compensation, the employee and employer shall be furnished with 
a copy of the medical report upon which the payment is based and 
all other medical reports which the insurer has that indicate a 
permanent partial disability rating, together with a statement 
by the insurer as to whether the tendered payment is for minimum 
permanent partial disability or final and eventual disability.  
Compensation for permanent partial disability After receipt of 
all reports available to the insurer that indicate a permanent 
partial disability rating, the employee shall make available or 
permit the insurer to obtain any medical report that the 
employee has or has knowledge of that contains a permanent 
partial disability rating which the insurer does not already 
have.  Economic recovery compensation or impairment compensation 
pursuant to section 176.101 is payable in addition to but not 
concurrently with compensation for temporary total disability 
and but is payable temporary partial disability pursuant to 
section 176.101, subdivisions 1 and 2, as provided in 
subdivision 3a.  Compensation for permanent partial disability 
Impairment compensation is payable concurrently and in addition 
to compensation for permanent total disability pursuant to 
section 176.101, subdivision 5, as provided in subdivision 3a.  
Compensation for permanent partial disability Economic recovery 
compensation or impairment compensation pursuant to section 
176.101 shall be withheld pending completion of payment for 
temporary total and temporary partial disability but shall not 
be withheld pending payment of compensation for permanent total 
disability, and no credit shall be taken for payment of 
permanent partial disability economic recovery compensation or 
impairment compensation against liability for temporary total or 
future permanent total disability.  Liability on the part of an 
employer or his the insurer for disability of a temporary total, 
temporary partial, and permanent total nature shall be 
considered as a continuing product and part of the employee's 
inability to earn or reduction in earning capacity due to injury 
or occupational disease and shall be compensation is payable 
accordingly, subject to subdivision 3a section 176.101.  
Permanent partial disability Economic recovery compensation or 
impairment compensation is payable for functional loss of use or 
impairment of function, permanent in nature, and payment 
therefore shall be separate, distinct, and in addition to 
payment for any other compensation, subject to subdivision 3a 
section 176.101.  The right to receive temporary total, 
temporary partial, permanent partial or permanent total 
disability payments shall vest vests in the injured employee or 
his the employee's dependents under this chapter or, if none, in 
his the employee's legal heirs at the time the disability can be 
ascertained and the right shall is not be abrogated by the 
employee's death prior to the making of the payment. 
    The right to receive economic recovery compensation or 
impairment compensation vests in an injured employee at the time 
the disability can be ascertained provided that the employee 
lives for at least 30 days beyond the date of the injury.  Upon 
the death of an employee who is receiving economic recovery 
compensation or impairment compensation, further compensation is 
payable pursuant to section 176.101.  Impairment compensation is 
payable under this paragraph if vesting has occurred, the 
employee dies prior to reaching maximum medical improvement, and 
the requirements and conditions under section 176.101, 
subdivision 3e, are not met.  
    Disability ratings for permanent partial disability shall 
be based on objective medical evidence.  
    Sec. 34.  Minnesota Statutes 1982, section 176.041, 
subdivision 1, is amended to read: 
    Subdivision 1.  [EMPLOYMENTS EXCLUDED.] This chapter does 
not apply to persons employed by any common carrier by railroad 
engaged in interstate or foreign commerce, which persons who are 
covered by the Federal Employers' Liability Act (45 U.S.C. 
51-60) or other comparable federal law; persons employed by 
family farms as defined by section 176.011, subdivision 11a, the 
spouse, parent and child, regardless of age, of a farmer 
employer working for him the farmer employer; partners engaged 
in any farm operation or partners engaged in a business and the 
spouse, parent, and child, regardless of age, of any of the 
partners of the farm operation or business; an executive officer 
of a family farm corporation; an executive officer of a closely 
held corporation referred to in section 176.012; any spouse, 
parent, or child, regardless of age, of an executive officer of 
a family farm corporation as defined in section 500.24, 
subdivision 2, employed by that family farm corporation; any 
spouse, parent, or child, regardless of age, of an executive 
officer of a closely held corporation referred to in section 
176.012; or other farmers or members of their families 
exchanging work with the farmer employer or family farm 
corporation operator in the same community, or persons whose 
employment at the time of the injury is casual, and not in the 
usual course of the trade, business, profession, or occupation 
of his the employer; persons who are independent contractors as 
defined by rules adopted by the commissioner pursuant to section 
176.83 except that this exclusion does not apply to an employee 
of an independent contractor; nor does it apply to officers or 
members of veteran's organizations whose employment relationship 
arises solely by virtue of attending meetings or conventions of 
their organization, unless the veteran's organizations elect by 
resolution to provide coverage under this chapter for the 
officers or members.  Neither shall The chapter also does not 
apply to any person employed as a household worker in, for, or 
about, a private home or household who earns less than $500 in 
cash in any three month period from a single private home or 
household provided that any household worker who has earned $500 
or more from his the household worker's present employer in any 
three month period within the previous year shall be is covered 
by this chapter regardless of whether or not he the household 
worker has earned $500 in the present quarter earned $500.  This 
chapter does not apply to those persons employed by a 
corporation where those persons are related by blood or 
marriage, within the third degree of kindred according to the 
rules of civil law, to all of the officers of the corporation, 
and if the corporation files a written election with the 
commissioner of labor and industry to have those persons 
excluded from this chapter except that a written election is not 
required for a person who is otherwise excluded from this 
chapter by this section.  This chapter does not apply to a 
nonprofit association which does not pay more than $500 in 
salary or wages in a year. 
    Sec. 35.  Minnesota Statutes 1982, section 176.061, is 
amended to read: 
    176.061 [THIRD PARTY LIABILITY.] 
    Subdivision 1.  [ELECTION OF REMEDIES.] Where If an injury 
or death for which benefits are payable occurs under 
circumstances which create a legal liability for damages on the 
part of a party other than the employer and at the time of such 
the injury or death that party was insured or self-insured in 
accordance with this chapter, the employee, in case of injury, 
or his the employee's dependents, in case of death, may proceed 
either at law against that party to recover damages or against 
the employer for benefits, but not against both. 
    Subd. 2.  [ACTION FOR RECOVERY OF DAMAGES.] If the 
employee, in case of injury, or his the employee's dependents, 
in case of death, brings an action for the recovery of damages, 
the amount thereof of the damages, the manner in which they are 
paid, and the persons to whom the same they are payable, shall 
be are as provided in this chapter.  In no case shall such the 
party be liable to any person other than the employee or his the 
employee's dependents for any damages resulting from such the 
injury or death.  
    Subd. 3.  [ELECTION TO RECEIVE BENEFITS FROM EMPLOYER; 
SUBROGATION.] If the employee or his the employee's dependents 
elect to receive benefits from the employer, or the special 
compensation fund, the employer, or the special compensation 
fund, has a right of indemnity or is subrogated to the right of 
the employee or his the employee's dependents to recover damages 
against the other party.  The employer, or the attorney general 
on behalf of the special compensation fund, may bring legal 
proceedings against such the party and recover the aggregate 
amount of benefits payable to or on behalf of the employee or 
his the employee's dependents, together with costs, 
disbursements, and reasonable attorney's fees of the action. 
    If an action as provided in this chapter is prosecuted by 
the employee, the employer, or the attorney general on behalf of 
the special compensation fund, against the third person, and 
results in judgment against the third person, or settlement by 
the third person, the employer shall have has no liability to 
reimburse or hold the third person harmless on the judgment or 
settlement in absence of a written agreement to do so executed 
prior to the injury. 
    Subd. 4.  [APPLICATION OF SUBDIVISIONS 1, 2, AND 3.] The 
provisions of subdivisions 1, 2, and 3 apply only where if the 
employer liable for benefits and the other party legally liable 
for damages are insured or self-insured and engaged, in the due 
course of business in, (a) furtherance of a common enterprise, 
or (b) in the accomplishment of the same or related purposes in 
operations on the premises where the injury was received at the 
time thereof of the injury. 
    Subd. 5.  [CUMULATIVE REMEDIES.] Where If an injury or 
death for which benefits are payable is caused under 
circumstances which created a legal liability for damages on the 
part of a party other than the employer, that party being then 
insured or self-insured in accordance with this chapter, and the 
provisions of subdivisions 1, 2, 3, and 4 do not apply, or the 
party other than the employer is not then insured or 
self-insured as provided by this chapter, legal proceedings may 
be taken by the employee or his the employee's dependents in 
accordance with clause (a), or by his employer, or by the 
attorney general on behalf of the special compensation fund, in 
accordance with clause (b), against the other party to recover 
damages, notwithstanding the payment of benefits by the employer 
, or the special compensation fund or their liability to pay 
benefits. 
    (a) If an action against the other party is brought by the 
injured employee or his the employee's dependents and a judgment 
is obtained and paid or settlement is made with the other party, 
the employer or the special compensation fund may deduct from 
the benefits payable the amount actually received by the 
employee or dependents or paid on their behalf in accordance 
with subdivision 6.  If the action is not diligently prosecuted 
or if the court deems it advisable in order to protect the 
interests of the employer, or the special compensation fund, 
upon application the court may grant the employer, or the 
special compensation fund, the right to intervene in any such 
the action for the prosecution thereof of the action.  If the 
injured employee or his the employee's dependents or any party 
on their behalf receives benefits from the employer, or the 
special compensation fund, or institute institutes proceedings 
to recover the same benefits or accept accepts from the employer 
, or the special compensation fund, any payment on account of 
the benefits, the employer, or the special compensation fund, is 
subrogated to the rights of the employee or his the employee's 
dependents or has a right of indemnity against a third party.  
This The employer, or the attorney general on behalf of the 
special compensation fund, may maintain an a separate action or 
continue an action already instituted.  This action may be 
maintained in the name of the employee or the names of the 
employee's dependents, or in the name of the employer, or in the 
name of the attorney general on behalf of the special 
compensation fund, against such the other party for the recovery 
of damages.  If the action is not diligently prosecuted by the 
employer, or the attorney general on behalf of the special 
compensation fund, or if the court deems it advisable in order 
to protect the interest of the employee, the court, upon 
application, may grant to the employee or his the employee's 
dependents the right to intervene in the action for the 
prosecution thereof of the action.  The proceeds of such the 
action or settlement thereof of the action shall be paid in 
accordance with subdivision 6. 
    (b) If an employer, being then insured, sustains damages 
due to a change in workers' compensation insurance premiums, 
whether by a failure to achieve a decrease or by a retroactive 
or prospective increase, as a result of the injury or death of 
his an employee which was caused under circumstances which 
created a legal liability for damages on the part of a party 
other than the employer, the employer, notwithstanding other 
remedies provided, may maintain an action against the other 
party for recovery of such the premiums.  This cause of action 
may be brought either by joining in an action described in 
clause (a) or by a separate action.  Damages recovered under 
this clause shall be are for the benefit of the employer and the 
provisions of subdivision 6 shall are not be applicable to such 
the damages. 
    (c) The third party is not liable to any person other than 
the employee or his the employee's dependents, or his the 
employer, or the special compensation fund, for any damages 
resulting from the injury or death. 
    A co-employee working for the same employer is not liable 
for a personal injury incurred by another employee unless the 
injury resulted from the gross negligence of the co-employee or 
was intentionally inflicted by the co-employee. 
    Subd. 6.  [COSTS, ATTORNEY FEES, EXPENSES.] The proceeds of 
all actions for damages or of a settlement thereof of an action 
under this section, except for damages received under 
subdivision 5, clause (b) received by the injured employee or 
his the employee's dependents or by the employer, or the special 
compensation fund, as provided by subdivision 5, shall be 
divided as follows: 
    (a) After deducting the reasonable cost of collection, 
including but not limited to attorneys fees and burial expense 
in excess of the statutory liability, then 
    (b) One-third of the remainder shall in any event be paid 
to the injured employee or his the employee's dependents, 
without being subject to any right of subrogation. 
    (c) Out of the balance remaining, the employer, or the 
special compensation fund, shall be reimbursed in an amount 
equal to all benefits paid under this chapter to or on behalf of 
the employee or his the employee's dependents by the employer, 
or special compensation fund, less the product of the costs 
deducted under clause (a) divided by the total proceeds received 
by the employee or his dependents from the other party 
multiplied by all benefits paid by the employer, or the special 
compensation fund, to the employee or his the employee's 
dependents. 
    (d) Any balance remaining shall be paid to the employee or 
his the employee's dependents, and shall be a credit to the 
employer, and or the special compensation fund, for any benefits 
which the employer or the special compensation fund is obligated 
to pay, but has not paid, and for any benefits that such the 
employer shall be or the special compensation fund is obligated 
to make in the future. 
    There shall be no reimbursement or credit to the employer, 
or to the special compensation fund, for interest or penalties. 
    Subd. 7.  [MEDICAL TREATMENT.] The liability of an employer 
, or the special compensation fund, for medical treatment or 
payment of any other compensation under this chapter shall is 
not be affected by the fact that his the employee was injured 
through the fault or negligence of a third party, against whom 
the employee may have a cause of action which may be sued under 
this chapter, but the employer, or the attorney general on 
behalf of the special compensation fund, shall have has a 
separate additional cause of action against such the third party 
to recover any amounts paid for medical treatment or for other 
compensation payable under this section resulting from the 
negligence of such the third party.  This separate cause of 
action of the employer, or the attorney general on behalf of the 
special compensation fund, may be asserted in a separate action 
brought by the employer, or the attorney general on behalf of 
the special compensation fund, against such the third party, or 
in the action commenced by the employee or the employer, or the 
attorney general on behalf of the special compensation fund, 
under this chapter, but in the latter case the cause of action 
shall be separately stated, the amount awarded thereon in the 
action shall be separately set out in the verdict, and the 
amount recovered by suit or otherwise as reimbursement for 
medical expenses or other compensation shall be for the benefit 
of the employer, or the special compensation fund, to the extent 
that the employer, or the special compensation fund, has paid or 
will be required to pay compensation or pay for medical 
treatment of the injured employee and shall does not affect the 
amount of periodic compensation to be paid. 
    Subd. 8.  [STATE AS EMPLOYER.] In every case arising under 
subdivision 5 when the state is the employer and a settlement 
between the third party and the employee is made it is not valid 
unless prior notice thereof is given to the state within a 
reasonable time.  If the state pays compensation to the employee 
under the provisions of this chapter and becomes subrogated to 
the rights of the employee or his dependents any settlement 
between the employee or his dependents and the third party is 
void as against the state's right of subrogation.  When an 
action at law is instituted by an employee or his dependents 
against a third party for recovery of damages a copy of the 
complaint and notice of trial or note of issue in such action 
shall be served on the state.  Any judgment rendered therein is 
subject to a lien of the state for the amount to which it is 
entitled to be subrogated under the provisions of subdivision 5. 
    Subd. 8a.  [NOTICE TO EMPLOYER.] In every case arising 
under subdivision 5, a settlement between the third party and 
the employee is not valid unless prior notice of the intention 
to settle is given to the employer within a reasonable time.  If 
the employer or insurer pays compensation to the employee under 
the provisions of this chapter and becomes subrogated to the 
right of the employee or the employee's dependents or has a 
right of indemnity, any settlement between the employee or the 
employee's dependents and the third party is void as against the 
employer's right of subrogation or indemnity.  When an action at 
law is instituted by an employee or the employee's dependents 
against a third party for recovery of damages, a copy of the 
complaint and notice of trial or note of issue in the action 
shall be served on the employer or insurer.  Any judgment 
rendered in the action is subject to a lien of the employer for 
the amount to which it is entitled to be subrogated or 
indemnified under the provisions of subdivision 5.  
    Subd. 9.  [SERVICE OF NOTICE ON ATTORNEY GENERAL.] In every 
case in which the state is liable to pay compensation or is 
subrogated to the rights of the employee or his the employee's 
dependents or has a right of indemnity, all notices required to 
be given the state shall be served on the attorney general and 
the commissioner of the department of labor and industry. 
    Subd. 10.  [INDEMNITY.] Notwithstanding the provisions of 
chapter 65B or any other law to the contrary, an employer has a 
right of indemnity for any compensation paid or payable pursuant 
to this chapter, including temporary total compensation, 
temporary partial compensation, permanent partial disability, 
economic recovery compensation, impairment compensation, medical 
compensation, rehabilitation, death, and permanent total 
compensation.  
    Sec. 36.  Minnesota Statutes 1982, section 176.081, 
subdivision 1, is amended to read: 
    Subdivision 1.  No claim for legal services or 
disbursements pertaining to any demand made or suit or 
proceeding brought under the provisions of this chapter is an 
enforceable lien against the compensation or is valid or binding 
in any other respect unless approved in writing by the division, 
a compensation judge, a judge of the district court, or the 
workers' compensation court of appeals, if the claim arises out 
of a proceeding for compensation under this chapter, or by the 
judge presiding at the trial in an action for damages, or by a 
judge of the district court in a settlement of a claim for 
damages without trial.  The division, a compensation judge, a 
judge of the district court or the workers' compensation court 
of appeals shall in matters before them, including settlement 
proceedings, have authority to approve (a) A fee for legal 
services of up to 25 percent of the first $4,000 of compensation 
awarded to the employee and up to 20 percent of the next $27,500 
of compensation awarded to the employee is permissible and does 
not require approval by the commissioner, compensation judge, or 
any other party except as provided in clause (b).  If the 
employer or his the insurer or the defendant is given written 
notice of such claims for legal services or disbursements, the 
same claim shall be a lien against the amount paid or payable as 
compensation, subject to determination of the amount and 
approval provided by this chapter.  Provided, however, that In 
no case shall fees be calculated on the basis of any undisputed 
portion of compensation awards.  Allowable fees under this 
chapter shall be based solely upon genuinely disputed portions 
of claims, including disputes related to the payment of 
rehabilitation benefits or to other aspects of a rehabilitation 
plan.  
    (b) An attorney who is claiming legal fees under this 
section shall file a statement of attorney's fees with the 
commissioner, compensation judge before whom the matter was 
heard, or workers' compensation court of appeals on cases before 
the court.  A copy of the signed retainer agreement shall also 
be filed.  The employee and insurer shall receive a copy of the 
statement.  The statement shall be on a form prescribed by the 
commissioner and shall clearly and conspicuously state that the 
employee or insurer has ten calendar days to object to the 
attorney fees requested.  If no objection is timely made by the 
employee or insurer, the amount requested shall be conclusively 
presumed reasonable providing the amount does not exceed the 
limitation in subdivision 1.  The commissioner, compensation 
judge, or court of appeals shall issue an order granting the 
fees and the amount requested shall be awarded to the party 
requesting the fee.  
     If a timely objection is filed, the commissioner, 
compensation judge, or court of appeals shall review the matter 
and make a determination based on the criteria in subdivision 5. 
    If no timely objection is made by an employer or insurer, 
reimbursement under subdivision 7 shall be made if the statement 
of fees requested this reimbursement.  
    Sec. 37.  Minnesota Statutes 1982, section 176.081, 
subdivision 2, is amended to read: 
    Subd. 2.  Any An application for attorney fees in excess of 
the amount authorized in subdivision 1 shall be made to the 
workers' compensation court of appeals division, compensation 
judge, or district judge, before whom the matter was heard.  An 
appeal of a decision by a compensation judge or district court 
judge on additional fees may be made to the workers' 
compensation court of appeals.  The application shall set forth 
the fee requested and the basis for such the request and whether 
or not a hearing is requested.  The application, with affidavit 
of service upon the employee, shall be filed by the attorney 
requesting the fee.  If a hearing is requested by an interested 
party, a hearing shall be set with notice of such the hearing 
served upon known interested parties.  In all cases the employee 
shall be served with notice of hearing.  
    Sec. 38.  Minnesota Statutes 1982, section 176.081, 
subdivision 5, is amended to read: 
    Subd. 5.  In the determination of the reasonable value of 
attorney fees arising out of a claim or proceeding under this 
chapter an award of fees in excess of the amount authorized 
under subdivision 1, or if an objection is filed under 
subdivision 1, clause (b), the following principles are to be 
applied: 
    (a) The fee in each individual case must be a reasonable 
one. 
    (b) There is no set standard fee to be awarded in any 
workers' compensation matter. 
    (c) No attorney-client fee contract or arrangement is 
binding in any workers' compensation matter. 
    (d) In determining a reasonable attorney fee, important 
factors to be taken into account are:  the amount involved, the 
time and expense necessary to prepare for trial, the 
responsibility assumed by counsel, the expertise of counsel in 
the workers' compensation field, the difficulties of the issues 
involved, the nature of proof needed to be adduced and the 
results obtained.  The amount of money involved shall not be the 
controlling factor. 
    (e) The determination of the fee in each specific workers' 
compensation matter must be done with the same care as the 
determination of any other fact question in the matter. 
    (f) The determiner of the attorney fee in each matter must 
ascertain whether or not a retainer fee has been paid to the 
attorney and if so, the amount of the retainer fee. 
    (g) The determiner of attorney fees in each case must 
personally see that the workers' compensation file contains 
fully adequate information to justify the fee that is determined.
    Sec. 39.  Minnesota Statutes 1982, section 176.081, 
subdivision 6, is amended to read: 
    Subd. 6.  The commissioner, office of administrative 
hearings, and the workers' compensation court of appeals may 
adopt reasonable and proper joint rules to effect its each of 
their obligations under this section.  
    Sec. 40.  Minnesota Statutes 1982, section 176.081, 
subdivision 7, is amended to read: 
    Subd. 7.  If the employer or insurer shall file files a 
denial of liability, notice of discontinuance, or shall fail 
fails to make payment of compensation or medical expenses within 
the statutory period after notice of injury or occupational 
disease, or shall otherwise resist unsuccessfully resists the 
payment of compensation or medical expenses, or unsuccessfully 
disputes the payment of rehabilitation benefits or other aspects 
of a rehabilitation plan, and the injured person shall have has 
employed an attorney at law, who successfully procures payment 
on behalf of the employee or who enables the resolution of a 
dispute with respect to a rehabilitation plan, the compensation 
judge, commissioner of the department of labor and industry, or 
the workers' compensation court of appeals upon appeal, upon 
application, shall award to the employee against the insurer or 
self-insured employer or uninsured employer, in addition to the 
compensation benefits paid or awarded to the employee, an amount 
equal to 25 percent of that portion of the attorney's fee which 
has been awarded pursuant to this section that is in excess of 
$250.  
    Sec. 41.  Minnesota Statutes 1982, section 176.081, is 
amended by adding a subdivision to read:  
    Subd. 11.  [WHEN FEES DUE.] Attorney fees and other 
disbursements for a proceeding under this chapter shall not be 
due or paid until the issue for which the fee or disbursement 
was incurred has been resolved.  
    Sec. 42.  Minnesota Statutes 1982, section 176.101, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TEMPORARY TOTAL DISABILITY.] For injury 
producing temporary total disability, the compensation is 66-2/3 
percent of the daily weekly wage at the time of injury 
    (1) provided that during the year commencing on October 1, 
1979, and each year thereafter, commencing on October 1, the 
maximum weekly benefits compensation payable shall be is the 
statewide average weekly wage for the period ending December 31, 
of the preceding year. 
    (2) The minimum weekly compensation benefits for temporary 
total disability shall be not less than 50 percent of the 
statewide average weekly wage or the injured employee's actual 
weekly wage, whichever is less.  In no case shall a weekly 
benefit be less than 20 percent of the statewide average weekly 
wage.  
    Subject to subdivisions 3a to 3u this compensation shall be 
paid during the period of disability, payment to be made at the 
intervals when the wage was payable, as nearly as may be. 
    Sec. 43.  Minnesota Statutes 1982, section 176.101, 
subdivision 2, is amended to read: 
    Subd. 2.  [TEMPORARY PARTIAL DISABILITY.] In all cases of 
temporary partial disability the compensation shall be 66-2/3 
percent of the difference between the daily weekly wage of the 
worker employee at the time of injury and the wage he the 
employee is able to earn in his the employee's partially 
disabled condition.  This compensation shall be paid during the 
period of disability except as provided in section 176.101, 
payment to be made at the intervals when the wage was payable, 
as nearly as may be, and subject to a maximum compensation equal 
to the statewide average weekly wage.  If the employer does not 
furnish the worker with work which he can do in his temporary 
partially disabled condition and he is unable to procure such 
work with another employer, after reasonably diligent effort, 
the employee shall be paid at the full compensation rate for his 
or her temporary total disability. 
    Sec. 44.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [ECONOMIC RECOVERY COMPENSATION.] If an employee 
is not eligible for an impairment award pursuant to subdivision 
3b, then the employee shall receive economic recovery 
compensation for a permanent partial disability pursuant to this 
subdivision.  The compensation shall be 66-2/3 percent of the 
weekly wage at the time of injury subject to a maximum equal to 
the statewide average weekly wage.  For permanent partial 
disability up to the percent of the whole body in the following 
schedule the compensation shall be paid for the proportion that 
the loss of function of the disabled part bears to the whole 
body multiplied by the number of weeks aligned with that percent.
       Percent of disability          Weeks of compensation 
                0-25                            600 
               26-30                            640 
               31-35                            680 
               36-40                            720 
               41-45                            760 
               46-50                            800 
               51-55                            880 
               56-60                            960 
               61-65                           1040 
               66-70                           1120 
               71-100                          1200 
   The percentage loss in all cases under this subdivision is 
determined according to the rules adopted by the commissioner 
pursuant to section 176.105, subdivision 4.  This subdivision 
shall apply to a permanent partial disability incurred on or 
after the adoption of those rules.  
    Sec. 45.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3b.  [IMPAIRMENT COMPENSATION.] An employee who 
suffers a permanent partial disability due to a personal injury 
and receives impairment compensation under this section shall 
receive compensation in an amount as provided by this 
subdivision.  For permanent partial disability up to the percent 
of the whole body shown in the following schedule the amount 
shall be equal to the proportion that the loss of function of 
the disabled part bears to the whole body multiplied by the 
amount aligned with that percent in the following schedule:  
        Percent of disability             Amount
                 0-25                    $ 75,000
                26-30                      80,000
                31-35                      85,000
                36-40                      90,000
                41-45                      95,000
                46-50                     100,000
                51-55                     120,000
                56-60                     140,000
                61-65                     160,000
                66-70                     180,000
                71-75                     200,000
                76-80                     240,000
                81-85                     280,000
                86-90                     320,000
                91-95                     360,000
               96-100                     400,000
    For all cases under this subdivision the percentage loss of 
function of a part of the body is determined according to the 
rules adopted by the commissioner pursuant to section 176.105, 
subdivision 4.  This subdivision shall apply to a permanent 
partial disability incurred on or after the adoption of those 
rules.  
    Sec. 46.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read:  
    Subd. 3c.  [MAXIMUM PAYABLE.] The maximum amount payable 
under subdivisions 3a and 3b is the maximum compensation payable 
to an employee who has a 100 percent disability to the body as a 
whole and under no conditions shall an employee receive more 
than those amounts even if the employee sustains a disability to 
two or more body parts.  
    Sec. 47.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3d.  [GENERAL.] An employee who has incurred a 
personal injury shall receive temporary total compensation until 
these benefits are no longer payable pursuant to this section. 
If the injury results in a permanent partial disability the 
employee shall receive compensation as provided in this section. 
    Sec. 48.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3e.  [END OF TEMPORARY TOTAL COMPENSATION.] (a) 90 
days after an employee has reached maximum medical improvement 
or 90 days after the end of an approved retraining program, 
whichever is later, the employee's temporary total compensation 
shall cease.  This cessation shall occur at an earlier date if 
otherwise provided by this chapter.  
    (b) If during the 90-day period described in clause (a) the 
employee retires or the employer furnishes work to the employee 
that is consistent with an approved plan of rehabilitation or, 
if no plan has been approved, that the employee can do in his or 
her physical condition and that job produces an economic status 
as close as possible to that the employee would have enjoyed 
without the disability, or the employer procures this employment 
with another employer or the employee accepts this job with 
another employer, temporary total compensation shall cease and 
the employee shall, if appropriate, receive impairment 
compensation pursuant to subdivision 3b.  This impairment 
compensation is in lieu of economic recovery compensation under 
subdivision 3a, and the employee shall not receive both economic 
recovery compensation and impairment compensation.  Temporary 
total compensation and impairment compensation shall not be paid 
concurrently.  Once temporary total compensation ceases no 
further temporary total compensation is payable except as 
specifically provided by this section.  
    Upon receipt of a written medical report indicating that 
the employee has reached maximum medical improvement, the 
employer or insurer shall serve a copy of the report upon the 
employee and shall file a copy with the division.  The beginning 
of the 90-day period shall commence on the day this report is 
served on the employee for the purpose of determining whether a 
job offer consistent with the requirements of this subdivision 
is made.  
    (c) The job which is offered or procured by the employer or 
accepted by the employee under clause (b) does not necessarily 
have to commence immediately but shall commence within a 
reasonable period after the end of the 90-day period described 
in clause (a).  Temporary total compensation shall not cease 
under this subdivision until the job commences.  
    (d) If the job offered under clause (a) is not the job the 
employee had at the time of injury it shall be offered in 
writing and shall state the nature of the job, the rate of pay, 
the physical requirements of the job, and any other information 
necessary to fully and completely inform the employee of the job 
duties and responsibilities.  
    The employee has 14 calendar days to accept or reject the 
job offer.  If the employee does not respond within this period 
it is deemed a refusal of the offer.  
    (e) Self-employment may be an appropriate job under this 
subdivision.  
    The commissioner shall monitor application of this 
subdivision and may adopt rules to assure its proper application.
    Sec. 49.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read:  
    Subd. 3f.  [JOB PRIOR TO MAXIMUM MEDICAL IMPROVEMENT.] If 
the employer offers a job prior to the employee reaching maximum 
medical improvement and the job is consistent with an approved 
plan of rehabilitation or if no rehabilitation plan has been 
approved and the job is within the employee's physical 
limitations; or the employer procures a job for the employee 
with another employer which meets the requirements of this 
subdivision; or the employee accepts a job with another employer 
which meets the requirements of this subdivision, the employee's 
temporary total compensation shall cease.  In this case the 
employee shall receive impairment compensation for the permanent 
partial disability which is ascertainable at that time.  This 
impairment compensation shall be paid at the same rate that 
temporary total compensation was last paid.  Upon reaching 
maximum medical improvement the provisions of subdivisions 3e or 
3p apply, whichever is appropriate, and economic recovery 
compensation or impairment compensation is payable accordingly 
except that the compensation shall be offset by impairment 
compensation received under this subdivision.  
    Sec. 50.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3g.  [ACCEPTANCE OF JOB OFFER.] If the employee 
accepts a job offer described in subdivision 3e and the employee 
begins work at that job, although not necessarily within the 
90-day period specified in that subdivision, the impairment 
compensation shall be paid in a lump sum 30 calendar days after 
the employee actually commences work.  
    Sec. 51.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3h.  [TEMPORARY PARTIAL COMPENSATION.] An employee 
who accepts a job under subdivision 3e or subdivision 3f and 
begins that job shall receive temporary partial compensation 
pursuant to subdivision 2, if appropriate.  
    Sec. 52.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3i.  [LAY OFF BECAUSE OF LACK OF WORK OR RELEASED FOR 
OTHER THAN SEASONAL CONDITIONS.] (a) If an employee accepts a 
job under subdivision 3e and begins work at that job and is 
subsequently unemployed because of economic conditions, other 
than seasonal conditions, the employee shall receive monitoring 
period compensation pursuant to clause (b).  In addition, the 
employer who was the employer at the time of the injury shall 
provide rehabilitation consultation by a qualified 
rehabilitation consultant if the employee remains unemployed for 
45 calendar days.  The commissioner may waive this 
rehabilitation consultation if the commissioner deems it 
appropriate.  Further rehabilitation, if deemed appropriate, is 
governed by section 176.102.  
    (b) Upon the employee's initial return to work the 
monitoring period begins to run.  If the employee is unemployed 
for the reason in clause (a), prior to the end of the monitoring 
period the employee shall receive monitoring period 
compensation.  This compensation shall be paid for the lesser of 
(1) the weeks remaining in the monitoring period, or (2) the 
weeks equal to the monitoring period minus the impairment 
compensation paid to the employee.  For purposes of this clause 
the impairment compensation shall be converted to weeks by 
dividing the impairment compensation received by the employee by 
the employee's compensation rate for temporary total disability 
at the time of the injury.  No monitoring period compensation is 
payable if the unemployment occurs after the expiration of the 
monitoring period.  Monitoring period compensation is payable at 
the same intervals and in the same amount as when temporary 
total compensation ceased.  
    (c) If the employee returns to work and is still receiving 
monitoring period compensation, this compensation shall cease. 
Any period remaining in the monitoring period upon this return 
to work shall be used to determine further benefits if the 
employee is again unemployed under clause (a).  
    (d) Upon the employee's return to work pursuant to this 
section the insurer shall notify the employee of the length of 
the employee's monitoring period and shall notify the employee 
of the amount of impairment to be paid and the date of payment.  
    Sec. 53.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3j.  [MEDICALLY UNABLE TO CONTINUE WORK.] (a) If the 
employee has started the job offered under subdivision 3e and is 
medically unable to continue at that job because of the 
permanent partial disability, that employee shall receive 
temporary total compensation pursuant to clause (b).  In 
addition, the employer who was the employer at the time of the 
injury shall provide rehabilitation consultation by a qualified 
rehabilitation consultant.  Further rehabilitation, if deemed 
appropriate, is governed by section 176.102.  
    (b) Temporary total compensation shall be paid for up to 90 
days after the employee has reached maximum medical improvement 
or 90 days after the end of an approved retraining plan, 
whichever is later.  The temporary total compensation shall 
cease at any time within the 90-day period that the employee 
begins work meeting the requirements of subdivision 3e.  If no 
job is offered to the employee by the end of this 90-day period, 
the employee shall receive economic recovery compensation 
pursuant to this section but reduced by the impairment 
compensation previously received by the employee for the same 
disability.  
    Sec. 54.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3k.  [UNEMPLOYMENT DUE TO SEASONAL CONDITION.] If an 
employee has started the job offered under subdivision 3e and is 
subsequently unemployed from that job because of the job's 
seasonal nature, the employee shall receive any unemployment 
compensation the employee is eligible for pursuant to chapter 
268.  The employee shall receive, in addition and concurrently, 
the amount that the employee was receiving for temporary partial 
disability at the time of the layoff.  No further or additional 
compensation is payable under this chapter because of the 
seasonal layoff.  
    Sec. 55.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3l.  [FAILURE TO ACCEPT JOB OFFER.] If the employee 
has been offered a job under subdivision 3e and has refused the 
offer, the impairment compensation shall not be paid in a lump 
sum but shall be paid in the same interval and amount that 
temporary total compensation was initially paid.  Temporary 
total compensation shall cease upon the employee's refusal to 
accept the job offered and no further or additional temporary 
total compensation is payable for that injury.  The payment of 
the periodic impairment compensation shall cease when the amount 
the employee is eligible to receive under subdivision 3b is 
reached, after which time the employee shall not receive 
additional impairment compensation or any other compensation 
under this chapter unless the employee has a greater permanent 
partial disability than already compensated for.  
    Sec. 56.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3m.  [RETURN TO WORK AFTER REFUSAL OF JOB OFFER.] If 
the employee has refused the job offer under subdivision 3e and 
is receiving periodic impairment compensation and returns to 
work at another job, the employee shall receive the remaining 
impairment compensation due, in a lump sum, 30 days after return 
to work.  
    Sec. 57.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3n.  [NO TEMPORARY PARTIAL COMPENSATION OR 
REHABILITATION IF JOB OFFER REFUSED.] An employee who has been 
offered a job under subdivision 3e and has refused that offer 
and who subsequently returns to work shall not receive temporary 
partial compensation pursuant to subdivision 2 if the job the 
employee returns to provides a wage less than the wage at the 
time of the injury.  No rehabilitation shall be provided to this 
employee.  
    Sec. 58.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3o.  [INABILITY TO RETURN TO WORK.] (a) An employee 
who is permanently totally disabled pursuant to subdivision 5 
shall receive impairment compensation as determined pursuant to 
subdivision 3b.  This compensation is payable in addition to 
permanent total compensation pursuant to subdivision 4 and is 
payable concurrently.  In this case the impairment compensation 
shall be paid in the same intervals and amount as the permanent 
total compensation is paid, and the impairment compensation 
shall cease when the amount due under subdivision 3b is 
reached.  If this employee returns to work at any job during the 
period the impairment compensation is being paid, the remaining 
impairment compensation due shall be paid in a lump sum 30 days 
after the employee has returned to work and no further temporary 
total compensation shall be paid.  
    (b) If an employee is receiving periodic economic recovery 
compensation and is determined to be permanently totally 
disabled no offset shall be taken against future permanent total 
compensation for the compensation paid.  No further economic 
recovery compensation is payable even if the amount due the 
employee pursuant to subdivision 3a has not yet been reached.  
    (c) An employee who has received periodic economic recovery 
compensation and who meets the criteria under clause (b) of this 
subdivision shall receive impairment compensation pursuant to 
clause (a) of this subdivision even if the employee has 
previously received economic recovery compensation for that 
disability.  
    (d) Rehabilitation consultation pursuant to section 176.102 
shall be provided to an employee who is permanently totally 
disabled.  
    Sec. 59.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3p.  [NO JOB OFFER.] Where the employee has a 
permanent partial disability and has reached maximum medical 
improvement or upon completion of an approved retraining 
program, whichever is later, that employee shall receive 
economic recovery compensation pursuant to subdivision 3a if no 
job offer meeting the criteria of the job in subdivision 3e is 
made within 90 days after reaching maximum medical improvement 
or 90 days after the end of an approved retraining plan, 
whichever is later.  
    Temporary total compensation shall cease upon commencement 
of the payment of economic recovery compensation.  Temporary 
total compensation shall not be paid concurrently with economic 
recovery compensation.  
    Sec. 60.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3q.  [METHOD OF PAYMENT OF ECONOMIC RECOVERY 
COMPENSATION.] (a) Economic recovery compensation is payable at 
the same intervals and in the same amount as temporary total 
compensation was paid.  If the employee returns to work and the 
economic recovery compensation is still being paid, the 
remaining economic recovery compensation due shall be paid in a 
lump sum 30 days after the employee has returned to work.  
    (b) Periodic economic recovery compensation paid to the 
employee shall not be adjusted pursuant to section 176.645.  
    Sec. 61.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3r.  [PAYMENT OF COMPENSATION AT DEATH.] If an 
employee receiving economic recovery compensation or impairment 
compensation in periodic amounts dies during the period from 
causes unrelated to the injury, the compensation shall be paid 
in the following manner:  
    (a) If the deceased employee leaves a dependent surviving 
spouse and no dependent children, as defined by section 176.111, 
subdivision 1, the spouse shall receive the periodic economic 
recovery or impairment compensation that the deceased was 
receiving before the death.  This compensation shall be paid for 
a period of up to ten years after the date of death at which 
time payments and future entitlement to it ceases.  
    (b) If the deceased employee leaves a dependent spouse and 
dependent children, as defined in section 176.111, subdivision 
1, the periodic economic recovery or impairment compensation 
shall continue to be paid to the surviving spouse for up to ten 
years after the last child is no longer dependent after which 
time payments and future entitlement to the compensation ceases. 
    (c) Payment of compensation under this subdivision shall 
cease prior to the end of the ten-year periods in this 
subdivision if the amount to which the employee is entitled to 
receive under subdivision 3, 3a, or 3b, is reached prior to the 
end of the ten-year period.  If the deceased employee is not 
survived by dependent children or a dependent spouse as defined 
in section 176.111, no further economic recovery compensation or 
impairment compensation is payable to any person under this 
subdivision.  
    (d) If the death results from the injury, the payment of 
economic recovery compensation or impairment compensation shall 
cease upon the death and death benefits are payable pursuant to 
section 176.111.  
    Sec. 62.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3s.  [ADDITIONAL ECONOMIC RECOVERY COMPENSATION OR 
IMPAIRMENT COMPENSATION.] No additional economic recovery 
compensation or impairment compensation is payable to an 
employee who has received that compensation to which the 
employee is entitled pursuant to subdivision 3a or 3b unless the 
employee has a greater permanent partial disability than already 
compensated.  
    Sec. 63.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3t.  [MINIMUM ECONOMIC RECOVERY COMPENSATION.] (a) 
Economic recovery compensation pursuant to this section shall be 
at least 120 percent of the impairment compensation the employee 
would receive if that compensation were payable to the 
employee.  The monitoring period shall be at least 120 percent 
of the weeks during which impairment compensation would be 
payable if paid weekly.  
    (b) An employee who has suffered a personal injury for 
which temporary total compensation is payable but which produces 
no permanent partial disability shall receive 26 weeks of 
economic recovery compensation if no job is offered within the 
time specified in and meeting the criteria of subdivision 3e.  
    Sec. 64.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3u.  [MEDICAL BENEFITS.] This section does not in any 
way limit the medical benefits to which an injured employee is 
otherwise entitled pursuant to this chapter.  
    Sec. 65.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read: 
    Subd. 3v.  [ADMINISTRATIVE CONFERENCE.] The provisions of 
section 176.242 apply if there exists a dispute regarding 
maximum medical improvement or whether the job offered meets the 
criteria under subdivision 3e or 3f.  
    Sec. 66.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read:  
    Subd. 4a.  [PREEXISTING CONDITION OR DISABILITY; 
APPORTIONMENT.] (a) If a personal injury results in a disability 
which is attributable in part to a preexisting disability that 
arises from a congenital condition or is the result of a 
traumatic injury or incident, whether or not compensable under 
this chapter, the compensation payable for the permanent partial 
disability pursuant to this section shall be reduced by the 
proportion of the disability which is attributable only to the 
preexisting disability.  An apportionment of a permanent partial 
disability under this subdivision shall be made only if the 
preexisting disability is clearly evidenced in a medical report 
or record made prior to the current personal injury.  Evidence 
of a copy of the medical report or record upon which 
apportionment is based shall be made available to the employee 
by the employer at the time compensation for the permanent 
partial disability is begun.  
    (b) The compensable portion of the permanent partial 
disability under this section shall be paid at the rate at which 
the entire disability would be compensated but for the 
apportionment.  
    Sec. 67.  Minnesota Statutes 1982, section 176.101, 
subdivision 6, is amended to read: 
    Subd. 6.  [MINORS.] If any employee entitled to the 
benefits of this chapter is a minor or is an apprentice of any 
age and sustains a personal injury arising out of and in the 
course of employment resulting in permanent total or a 
compensable permanent partial disability, for the purpose of 
computing the compensation to which he the employee is entitled 
for said the injury the compensation rate for temporary total, 
temporary partial, retraining, permanent partial or a permanent 
total disability or economic recovery compensation shall be the 
larger of either the statewide average weekly wage or the 
employees weekly wage, but in no case shall the compensation 
exceed the maximum weekly compensation rate payable under this 
chapter. 
    Sec. 68.  Minnesota Statutes 1982, section 176.101, is 
amended by adding a subdivision to read:  
    Subd. 8.  [RETIREMENT PRESUMPTION.] For injuries occurring 
after the effective date of this subdivision an employee who 
receives social security old age and survivors insurance 
retirement benefits is presumed retired from the labor market. 
This presumption is rebuttable by a preponderance of the 
evidence.  
    Sec. 69.  Minnesota Statutes 1982, section 176.102, 
subdivision 1, is amended to read: 
    Subdivision 1.  [SCOPE.] Vocational Rehabilitation shall 
train an is intended to restore the injured employee, through 
physical and vocational rehabilitation, so he the employee may 
be returned return to a job related to his the employee's former 
employment or to a job in another work area which produces an 
economic status as close as possible to that he the employee 
would have enjoyed without disability.  Rehabilitation to a job 
with a higher economic status than would have occurred without 
disability is permitted if it can be demonstrated that this 
rehabilitation is necessary to increase the likelihood of 
reemployment.  Economic status is to be measured not only by 
opportunity for immediate income but also by opportunity for 
future income.  
    Sec. 70.  Minnesota Statutes 1982, section 176.102, 
subdivision 2, is amended to read: 
    Subd. 2.  [ADMINISTRATORS.] The commissioner of labor and 
industry shall hire a director of rehabilitation services in the 
classified service.  The commissioner of labor and industry is 
responsible for supervising shall monitor and supervise 
rehabilitation services, including, but not limited to, making 
determinations regarding the selection and delivery of 
rehabilitation services and the criteria used to approve 
qualified rehabilitation consultants and rehabilitation 
vendors.  The commissioner may also make determinations 
regarding fees for rehabilitation services, the fitness of 
qualified rehabilitation consultants and vendors to continue to 
be approved under this section and has authority to discipline, 
by fine or otherwise, the consultants or vendors who act in 
violation of this chapter or rules adopted pursuant to this 
chapter.  The commissioner of labor and industry may hire 
qualified personnel to assist in his duties under this section 
and may delegate his duties and performance.  
    Sec. 71.  Minnesota Statutes 1982, section 176.102, 
subdivision 3, is amended to read: 
    Subd. 3.  [REVIEW PANEL.] There is created a rehabilitation 
review panel composed of the commissioner of labor and industry 
or his a designee, who shall serve as an ex officio member and 
two members each from labor, employers, insurers, vocational 
rehabilitation, and medicine and, one member representing 
chiropractors, and four members representing labor.  The members 
shall be appointed by the governor commissioner and shall serve 
four year four-year terms which may be renewed.  Compensation 
for members shall be governed by section 15.0575.  The panel 
shall select a chairman.  The panel shall (a) review and make a 
determination with respect to (a) appeals regarding eligibility 
for rehabilitation services, rehabilitation plans and 
rehabilitation benefits under subdivisions 9 and 11; (b) hold 
appeals on any other rehabilitation issue the commissioner 
determines under this section; and (c) appeals regarding fee 
disputes, penalties, discipline, certification approval or 
revocation of certification approval hearings; (c) of 
registration of qualified rehabilitation consultants and 
approved vendors.  The panel shall continuously study 
rehabilitation; services and delivery and (d) develop and 
recommend rehabilitation rules as necessary to the commissioner 
of labor and industry.  A majority vote of those attending a 
panel hearing under subdivision 6 shall constitute the decision 
of the board.  
    Sec. 72.  Minnesota Statutes 1982, section 176.102, is 
amended by adding a subdivision to read:  
    Subd. 3a.  [REVIEW PANEL APPEALS.] Appeals to the review 
panel shall be heard before a panel of five members designated 
by the review panel.  Each five-member panel shall consist of 
two labor members, two employer or insurer members, and one 
member representing medicine, chiropractic, or rehabilitation. 
The determination of the five-member panel shall be by a 
majority vote and shall represent the determination of the 
entire review panel and is not subject to review by the panel as 
a whole.  When conducting a review of the commissioner's 
determination regarding any rehabilitation issue or plan the 
panel shall give the parties notice that the appeal will be 
heard.  This notice shall be given at least ten working days 
prior to the hearing.  The notice shall state that parties may 
be represented by counsel at the hearing.  In conducting its 
review the panel shall permit an interested party to present 
relevant, competent, oral or written evidence and to 
cross-examine opposing evidence.  Evidence presented is not 
limited to the evidence previously submitted to the 
commissioner.  A record of the proceeding shall be made by the 
panel.  Upon determination of the issue presented, the panel 
shall issue to the interested parties a written decision and 
order.  The decision need not contain a recitation of the 
evidence presented at the hearing, but shall be limited to the 
panel's basis for the decision.  
    Sec. 73.  Minnesota Statutes 1982, section 176.102, 
subdivision 4, is amended to read: 
    Subd. 4.  [REHABILITATION PLAN; DEVELOPMENT.] Within 30 
days of the time an employer or his insurer has medical 
information that an employee is unable due to a personal injury 
or occupational disease to return to his preinjury occupation 
the employer shall provide rehabilitation consultation for the 
employee.  The employee, however, has the final decision on 
which rehabilitation agency is to be utilized pursuant to the 
provisions of this section.  The consultation shall be done by 
any person or public or private institution approved by the 
commissioner of labor and industry.  If the consultant 
determines rehabilitation would significantly reduce or 
eliminate the decrease in employability, the employer or insurer 
in conjunction with the rehabilitation consultant shall submit a 
specific plan of rehabilitation to the commissioner.  If the 
employer does not provide rehabilitation consultation, when 
required by this section, within the time specified by this 
subdivision, the commissioner of labor and industry shall notify 
the employer and insurer that should they fail to provide 
rehabilitation consultation within 15 days from the receipt of 
the commissioner's notice, the division of vocational 
rehabilitation shall be authorized to provide the rehabilitation 
consultation for the employee.  If the employee refuses to 
submit to any reasonable examinations and evaluative procedures 
to determine the need for and the details of a plan of 
rehabilitation, the amount of compensation may be reduced or the 
right to compensation may be suspended by an order of the 
division or workers' compensation court of appeals in a matter 
before it.  In developing a plan, consideration shall be given 
to the employee's age, education, previous work history, 
interests and skills. (a) An employer or insurer shall provide 
rehabilitation consultation by a qualified rehabilitation 
consultant or by another person permitted by rule to provide 
consultation to an injured employee within five days after the 
employee has 60 days of lost work time due to the personal 
injury, except as otherwise provided in this subdivision.  Where 
an employee has incurred an injury to the back, the consultation 
shall be made within five days after the employee has 30 days of 
lost work time due to the injury.  The lost work time in either 
case may be intermittent lost work time.  If an employer or 
insurer has medical information at any time prior to the time 
specified in this subdivision that the employee will be unable 
to return to the job the employee held at the time of the injury 
rehabilitation consultation shall be provided immediately after 
receipt of this information.  
     For purposes of this section "lost work time" means only 
those days during which the employee would actually be working 
but for the injury.  In the case of the construction industry, 
mining industry, or other industry where the hours and days of 
work are affected by seasonal conditions, "lost work time" shall 
be computed by using the normal schedule worked when employees 
are working full time.  
    If the employee objects to the employer's selection of a 
qualified rehabilitation consultant, the employee shall notify 
the employer and the commissioner in writing of the objection.  
    Upon receipt of the notice of objection, the commissioner 
may schedule an administrative conference for the purpose of 
determining which qualified rehabilitation consultant may be 
mutually acceptable.  The employee has the final decision on 
which qualified rehabilitation consultant is to be utilized.  
    The employee and employer shall enter into a program if one 
is prescribed in a rehabilitation plan.  A copy of the plan, 
including a target date for return to work, shall be submitted 
to the commissioner.  
    (b) If the employer does not provide rehabilitation 
consultation as required by this section, the commissioner shall 
notify the employer that if the employer fails to appoint a 
qualified rehabilitation consultant or other persons as 
permitted by clause (a) within 15 days to conduct a 
rehabilitation consultation, the commissioner shall appoint a 
qualified rehabilitation consultant to provide the consultation 
at the expense of the employer unless the commissioner 
determines the consultation is not required.  
    (c) In developing a rehabilitation plan consideration shall 
be given to the employee's qualifications, including but not 
limited to age, education, previous work history, interest, 
transferable skills, and present and future labor market 
conditions.  
     (d) The commissioner may waive rehabilitation consultation 
under this section if the commissioner is satisfied that the 
employee will return to work in the near future or that 
rehabilitation consultation will not be useful in returning an 
employee to work.  
    Sec. 74.  Minnesota Statutes 1982, section 176.102, 
subdivision 5, is amended to read:  
    Subd. 5.  [ON-THE-JOB TRAINING.] On-the-job training is to 
be given consideration in developing a rehabilitation plan 
especially where it would produce an economic status similar to 
that enjoyed prior to disability.  When a rehabilitation plan 
includes on the job training, the employee shall receive 
compensation while employed in an amount equal to the after tax 
wage the employee received at the time of the personal injury. 
This compensation shall be paid in whole or in part by the 
insurer liable for compensation for the employee's personal 
injury.  The amount of compensation to be paid by this insurer 
shall be determined in the rehabilitation plan prepared pursuant 
to this section.  Any difference between the amount of 
compensation the insurer is paying and the after tax wage the 
employee received at the time of the personal injury shall be 
paid by the on the job employer, but in no case shall this 
employer's amount exceed the prevailing wage for the job.  After 
tax wage shall be determined by subtracting federal and state 
income tax from the employee's gross wage.  
    A rehabilitation plan which includes on the job training 
shall attempt to create an incentive for an employer to hire the 
employee for on the job training.  This incentive may be in the 
form of reducing the on the job training employer's wages paid 
to the employee to a level which is less than the prevailing 
wage for the job, provided that the total compensation from the 
insurer, required by this section, and the wages paid by the on 
the job training employer is not less than the after tax wage 
received by the employee at the time of the personal injury. 
The compensation from the insurer and the on the job training 
employer paid pursuant to this subdivision is in lieu of 
temporary total disability payments and the additional 
compensation provided in subdivision 11. 
    Sec. 75.  Minnesota Statutes 1982, section 176.102, 
subdivision 6, is amended to read: 
    Subd. 6.  [PLAN, ELIGIBILITY FOR REHABILITATION, APPROVAL 
AND APPEAL.] The commissioner of labor and industry shall 
determine eligibility for rehabilitation services and shall 
review, approve, modify or reject rehabilitation plans developed 
under subdivision 4.  The commissioner shall also make 
determinations regarding rehabilitation issues not necessarily 
part of a plan including, but not limited to, determinations 
regarding whether an employee is eligible for further 
rehabilitation and the benefits under subdivisions 9 and 11 to 
which an employee is entitled.  Any persons aggrieved by A 
decision of the commissioner may appeal be appealed to the 
rehabilitation review panel within 30 days of the commissioner's 
decision.  The decision of the panel may be appealed to the 
workers' compensation court of appeals in the same manner as 
other matters appealed to the court.  The panel may approve or 
reject the decision of the commissioner. If it rejects the 
commissioner's decision it may formulate its own rehabilitation 
plan.  
    Sec. 76.  Minnesota Statutes 1982, section 176.102, is 
amended by adding a subdivision to read:  
    Subd. 6a.  [ELIGIBILITY DETERMINATION.] The commissioner 
has the sole authority under this chapter to determine 
eligibility for rehabilitation services under this section and 
to review, approve, modify, or reject rehabilitation plans and 
make other rehabilitation determinations pursuant to this 
chapter.  These determinations shall not be made by a 
compensation judge but may be appealed to the rehabilitation 
review panel and workers' compensation court of appeals as 
provided by subdivision 6.  
    Sec. 77.  Minnesota Statutes 1982, section 176.102, 
subdivision 7, is amended to read: 
    Subd. 7.  [PLAN IMPLEMENTATION; REPORTS.] Upon request by 
the commissioner, insurer or, employer or employee, medical and 
rehabilitation reports shall be made by the provider of the 
medical and rehabilitation service to the commissioner of labor 
and industry, insurer and, employer or employee of an 
employee's progress under a plan.  
    Sec. 78.  Minnesota Statutes 1982, section 176.102, 
subdivision 8, is amended to read: 
    Subd. 8.  [PLAN MODIFICATION.] Upon request of to the 
commissioner by the employer, the insurer, or employee to the 
commissioner, or upon the commissioner's own request, the plan 
may be suspended, terminated or altered upon a showing of good 
cause therefor, including:  
    (a) a physical impairment that does not allow the employee 
to pursue the vocation being trained for rehabilitation plan;  
    (b) the employee's performance level indicates he cannot 
complete the plan will not be successfully completed; or 
    (c) an employee does not cooperate with a plan.;  
    (d) that the plan or its administration is substantially 
inadequate to achieve the rehabilitation plan objectives.  
    An employee may request a change in a rehabilitation plan 
once because he the employee feels he is not suited ill-suited 
for the type of work for which training rehabilitation is being 
provided if the request is made within 90 days of the start of 
the plan if the rehabilitation plan includes retraining, this 
request must be made within 90 days of the beginning of the 
retraining program.  Any decision of the commissioner regarding 
a change in a plan may be appealed to the rehabilitation review 
panel within 15 30 days of the decision.  
    Sec. 79.  Minnesota Statutes 1982, section 176.102, 
subdivision 9, is amended to read: 
    Subd. 9.  [PLAN, COSTS.] An employer is liable for the 
following rehabilitation expenses under this section:  
    (a) Cost of vocational rehabilitation diagnosis evaluation 
and preparation of a plan;  
    (b) Cost of all rehabilitation services and supplies 
necessary for implementation of the plan;  
    (c) Reasonable cost of tuition, books and travel; and, in 
addition, reasonable costs of board and, lodging and custodial 
daycare when rehabilitation requires residence away from the 
employee's customary residence; and 
    (d) Reasonable costs of travel and custodial daycare during 
the job interview process;  
    (e) Reasonable cost for moving expenses of the employee and 
family if a job is found in a geographic area beyond reasonable 
commuting distance after a diligent search within the present 
community.  Relocation shall not be paid more than once during 
any rehabilitation program, and relocation shall not be required 
if the new job is located within the same standard metropolitan 
statistical area as the employee's job at the time of injury. An 
employee shall not be required to relocate and a refusal to 
relocate shall not result in a suspension or termination of 
compensation under this chapter; and 
    (d) (f) Any other expense agreed to be paid.  
    Sec. 80.  Minnesota Statutes 1982, section 176.102, 
subdivision 10, is amended to read: 
    Subd. 10.  [REHABILITATION; CONSULTANTS.] The commissioner 
shall approve rehabilitation consultants who may propose and 
implement plans if they satisfy rules promulgated adopted by the 
commissioner for rehabilitation consultants.  A consultant may 
be an individual or public or private entity, but may not be a 
vendor or the agent of a vendor of rehabilitation services.  
    Sec. 81.  Minnesota Statutes 1982, section 176.102, 
subdivision 11, is amended to read: 
    Subd. 11.  [COMPENSATION DURING REHABILITATION RETRAINING.] 
The insurer or employer shall pay up Retraining is limited to 
156 weeks of compensation during rehabilitation under a plan in 
an amount equal to 125 percent of the employee's rate for 
temporary total disability.  This payment is in lieu of payment 
for temporary total, temporary partial, or permanent total 
disability to which the employee might otherwise be entitled for 
this period under this chapter, but shall be considered to be 
the equivalent of temporary total disability for the purposes of 
section 176.132.  If on the job training is part of the 
rehabilitation program, the weeks during which the insurer or 
employer pays compensation pursuant to subdivision 5 shall be 
subtracted from the 156 weeks of retraining compensation which 
has been paid, if any, pursuant to this subdivision.  This 
subdivision shall not apply to retraining benefits for which 
liability has been established prior to July 1, 1979.  An 
employee who has been approved for retraining may petition the 
commissioner for additional compensation not to exceed 25 
percent of the compensation otherwise payable.  If the 
commissioner determines that this additional compensation is 
warranted due to unusual or unique circumstances of the 
employee's retraining plan, the commissioner may award 
additional compensation in an amount the commissioner determines 
is appropriate, not to exceed the employee's request.  This 
additional compensation shall cease at any time the commissioner 
determines the special circumstances are no longer present.  
    Sec. 82.  Minnesota Statutes 1982, section 176.102, is 
amended by adding a subdivision to read:  
    Subd. 11a.  [APPLICABILITY OF SECTION.] This section is 
applicable to all employees injured prior to or on and after 
October 1, 1979, except for those provisions which affect an 
employee's monetary benefits.  
    Sec. 83.  Minnesota Statutes 1982, section 176.102, is 
amended by adding a subdivision to read:  
    Subd. 13.  [DISCONTINUANCE.] All benefits payable under 
chapter 176 may, after a determination and order by the 
commissioner, be discontinued or forfeited for any time during 
which the employee refuses to submit to any reasonable 
examinations and evaluative procedures ordered by the 
commissioner to determine the need for and details of a plan of 
rehabilitation, or refuses to participate in rehabilitation 
evaluation as required by this section or does not make a good 
faith effort to participate in a rehabilitation plan.  A 
discontinuance under this section is governed by section 140.  
    Sec. 84.  [176.103] [MEDICAL HEALTH CARE REVIEW.] 
    Subdivision 1.  [PURPOSE.] It is the purpose of this 
section to provide for review of clinical health care providers 
who render services to injured employees.  This review shall be 
achieved by establishing a quality control system within the 
department of labor and industry.  
    The commissioner shall hire a medical consultant to assist 
in the administration of this section.  
    The medical consultant shall be a doctor of medicine 
licensed under the laws of Minnesota.  
    The medical consultant shall perform all duties assigned by 
the commissioner relating to the supervision of the total 
continuum of care of injured employees and shall also advise the 
department on matters on which the commissioner requests the 
consultant's advice or if the consultant deems it appropriate.  
    Subd. 2.  [SCOPE.] The commissioner shall monitor the 
medical and surgical treatment provided to injured employees, 
the services of other health care providers and shall also 
monitor hospital utilization as it relates to the treatment of 
injured employees.  This monitoring shall include determinations 
concerning the appropriateness of the service, whether the 
treatment is necessary and effective, the proper cost of 
services, the quality of the treatment, the right of providers 
to receive payment under this chapter for services rendered or 
the right to receive payment under this chapter for future 
services.  The commissioner may penalize, disqualify, or suspend 
a provider from receiving payment for services rendered under 
this chapter, if the commissioner determines that the provider 
has violated any part of this chapter or rule adopted under this 
chapter.  The commissioner's authority under this section also 
includes the authority to make determinations regarding any 
other activity involving the questions of utilization of medical 
services, and any other determination the commissioner deems 
necessary for the proper administration of this section.  
    The commissioner has the sole authority to make 
determinations under this section with a right of appeal to the 
medical services review board as provided in subdivision 3 and 
the workers' compensation court of appeals.  A compensation 
judge has no jurisdiction in making determinations under this 
section.  
    Subd. 3.  [MEDICAL SERVICES REVIEW BOARD; SELECTION; 
POWERS.] (a) There is created a medical services review board 
composed of the commissioner or the commissioner's designee as 
an ex officio member, two persons representing chiropractic, one 
person representing hospital administrators, and six medical 
practitioners representing different specialties which the 
commissioner determines are the most frequently utilized by 
injured employees.  The board shall also have one person 
representing employees, one person representing employers or 
insurers, and one person representing the general public.  The 
members shall be appointed by the commissioner and shall be 
governed by section 15.0575.  Terms of the board's members may 
be renewed.  The board shall appoint from among its clinical 
members a clinical advisory subcommittee on clinical quality and 
a clinical advisory subcommittee on clinical cost containment. 
Each subcommittee shall consist of at least three members one of 
whom shall be a member who is not a chiropractor or licensed 
physician.  
    The clinical quality subcommittee shall review clinical 
results for adequacy and recommend to the commissioner scales 
for disabilities and apportionment.  
    The clinical cost containment subcommittee shall review and 
recommend to the commissioner rates for individual clinical 
procedures and aggregate costs.  The subcommittees shall make 
regular reports to the board and the commissioner which shall 
evaluate the reports for the purpose of determining whether or 
not a particular health care provider continues to qualify for 
payment under chapter 176 or is subject to any other sanctions 
or penalties authorized under this section and to determine 
whether an employee has been off work longer than necessary.  
    In evaluating the clinical consequences of the services 
provided to an employee by a clinical health care provider, the 
board shall consider the following factors in the priority 
listed:  
    (1) the clinical effectiveness of the treatment;  
    (2) the clinical cost of the treatment; and 
    (3) the length of time of treatment.  
    In its consideration of these factors, the board shall 
utilize the information and recommendations developed by the 
subcommittees.  In addition, the board shall utilize any other 
data developed by the subcommittees pursuant to the duties 
assigned to the subcommittees under this section.  
    After making a determination, the board shall submit its 
recommendation in writing to the commissioner.  The board shall 
advise the commissioner on the adoption of rules regarding all 
aspects of medical care and services provided to injured 
employees.  
    (b) The board shall appoint three of its members to hear 
appeals from decisions of the commissioner regarding quality 
control and supervision of medical care; any other disputes 
regarding medical, surgical, and hospital care; decisions 
regarding the eligibility of medical providers to receive 
payments; or any other determinations of the commissioner 
pursuant to subdivision 2.  The three-member panel shall be 
composed of one member who does not represent a health care 
specialty, one member who represents the same specialty as the 
specialty at issue or, if the same specialty is not available, 
one member whose specialty is as close as possible considering 
the board's composition, and one member representing a different 
specialty.  The three-member panel shall conduct a hearing in 
the same manner, giving the same notice and following other 
procedures required of the rehabilitation review panel in 
section 176.102, subdivision 3a.  A majority vote of the 
three-member panel constitutes the decision of the full board. 
This decision may be appealed to the workers' compensation court 
of appeals.  
    (c) In any situation where a conflict of interest prevents 
the appointment of a full three-member panel or in any other 
situation where the commissioner deems it necessary to resolve a 
conflict of interest, the commissioner may appoint a temporary 
substitute board member to serve until the situation creating 
the conflict of interest has been resolved.  
    Sec. 85.  [176.104] [REHABILITATION PRIOR TO DETERMINATION 
OF LIABILITY.] 
    Subdivision 1.  [DISPUTE.] If there exists a dispute 
regarding whether an injury arose out of and in the course and 
scope of employment and an employee has been disabled for the 
requisite time under section 176.102, subdivision 4, prior to 
determination of liability, the employee shall be referred by 
the commissioner to the division of vocational rehabilitation 
which shall provide rehabilitation consultation.  The services 
provided by the division of vocational rehabilitation and the 
scope and term of the rehabilitation are governed by section 
176.102 and rules adopted pursuant to that section. 
Rehabilitation costs and services under this subdivision shall 
be approved, rejected, or modified by the commissioner.  
    Subd. 2.  [LIABILITY FOR PAST REHABILITATION.] If liability 
is determined after the employee has commenced rehabilitation 
under this section the liable party is responsible for the cost 
of rehabilitation provided and approved by the commissioner. 
Future rehabilitation after liability is established is governed 
by section 176.102.  
    Sec. 86.  Minnesota Statutes 1982, section 176.105, is 
amended by adding a subdivision to read: 
    Subd. 4. [LEGISLATIVE INTENT; RULES; LOSS OF MORE THAN ONE 
BODY PART.] (a) For the purpose of establishing a disability 
schedule pursuant to clause (b) of this subdivision, the 
legislature declares its intent that the commissioner establish 
a disability schedule which, assuming the same number and 
distribution of severity of injuries, the aggregate total of 
impairment compensation and economic recovery compensation 
benefits under section 176.101, subdivisions 3a to 3u be 
approximately equal to the total aggregate amount payable for 
permanent partial disabilities under section 176.101, 
subdivision 3, provided, however, that awards for specific 
injuries under the proposed schedule need not be the same as 
they were for the same injuries under the schedule pursuant to 
section 176.101, subdivision 3.  The schedule shall be 
determined by sound actuarial evaluation and shall be based on 
the benefit level which exists on January 1, 1983.  
    (b) The commissioner shall by rulemaking adopt procedures 
setting forth rules for the evaluation and rating of functional 
disability and the schedule for permanent partial disability and 
to determine the percentage of loss of function of a part of the 
body based on the body as a whole, including internal organs, 
described in section 176.101, subdivision 3, and any other body 
part not listed in section 176.101, subdivision 3, which the 
commissioner deems appropriate.  
    Temporary rules shall be adopted for this purpose not later 
than January 1, 1984.  Prior to the adoption of these rules, at 
least one public hearing shall be held by the commissioner, in 
addition to the requirements of sections 14.29 to 14.36. 
Notwithstanding sections 14.29 to 14.36, the temporary rules 
adopted under this subdivision shall be effective until 
superseded by permanent rules.  The rules shall promote 
objectivity and consistency in the evaluation of permanent 
functional impairment due to personal injury and in the 
assignment of a numerical rating to the functional impairment.  
    Prior to adoption of temporary rules the commissioner shall 
conduct an analysis of the current permanent partial disability 
schedule for the purpose of determining the number and 
distribution of permanent partial disabilities and the average 
compensation for various permanent partial disabilities.  The 
commissioner shall consider setting the compensation under the 
proposed schedule for the most serious conditions higher in 
comparison to the current schedule and shall consider decreasing 
awards for minor conditions in comparison to the current 
schedule.  
    The commissioner may consider, among other factors, and 
shall not be limited to the following factors in developing 
rules for the evaluation and rating of functional disability and 
the schedule for permanent partial disability benefits:  
    (1) the workability and simplicity of the procedures with 
respect to the evaluation of functional disability;  
    (2) the consistency of the procedures with accepted medical 
standards;  
    (3) rules, guidelines, and schedules that exist in other 
states that are related to the evaluation of permanent partial 
disability or to a schedule of benefits for functional 
disability provided that the commissioner is not bound by the 
degree of disability in these sources but shall adjust the 
relative degree of disability to conform to the expressed intent 
of clause (a);  
    (4) rules, guidelines, and schedules that have been 
developed by associations of health care providers or 
organizations provided that the commissioner is not bound by the 
degree of disability in these sources but shall adjust the 
relative degree of disability to conform to the expressed intent 
of clause (a);  
    (5) the effect the rules may have on reducing litigation;  
    (6) the treatment of preexisting disabilities with respect 
to the evaluation of permanent functional disability provided 
that any preexisting disabilities must be objectively determined 
by medical evidence; and 
    (7) symptomatology and loss of function and use of the 
injured member.  
    The factors in paragraphs (1) to (7) shall not be used in 
any individual or specific workers' compensation claim under 
this chapter but shall be used only in the adoption of rules 
pursuant to this section.  
    Nothing listed in paragraphs (1) to (7) shall be used to 
dispute or challenge a disability rating given to a part of the 
body so long as the whole schedule conforms with the expressed 
intent of clause (a). 
    (c) If an employee suffers a permanent functional 
disability of more than one body part due to a personal injury 
incurred in a single occurrence, the percent of the whole body 
which is permanently partially disabled shall be determined by 
the following formula so as to ensure that the percentage for 
all functional disability combined does not exceed the total for 
the whole body:  
  A + B (1 - A)  
    where:  A is the greater percentage whole body loss of the 
first body part; and B is the lesser percentage whole body loss 
otherwise payable for the second body part.  
    For permanent partial disabilities to three body parts due 
to a single occurrence or as the result of an occupational 
disease, the above formula shall be applied, providing that A 
equals the result obtained from application of the formula to 
the first two body parts and B equals the percentage for the 
third body part.  For permanent partial disability to four or 
more body parts incurred as described above, A equals the result 
obtained from the prior application of the formula, and B equals 
the percentage for the fourth body part or more in arithmetic 
progressions. 
    Sec. 87.  Minnesota Statutes 1982, section 176.111, 
subdivision 6, is amended to read: 
    Subd. 6.  [SPOUSE, NO DEPENDENT CHILD.] (a) If the deceased 
employee leaves a dependent surviving spouse and no dependent 
child, there shall be paid to the spouse, at the option of the 
spouse, either:  
    (1) A lump sum settlement equal to ten full years of 
compensation at 50 percent of the daily wage at the time of the 
injury of the deceased, computed without regard to section 
176.645; or 
    (2) weekly workers' compensation benefits at 50 percent of 
the daily wage at the time of the injury for a period of ten 
years, including adjustments as provided in section 176.645.  
    (b) A dependent surviving spouse who has not accepted a 
lump sum settlement pursuant to clause (a)(1) and who remarries 
shall receive the lesser of either:  
    (1) A lump sum settlement equal to two full years of 
compensation at 50 percent of the daily wage at the time of the 
injury of the deceased, computed without regard to section 
176.645; or 
    (2) The remaining weekly workers' compensation benefits 
pursuant to clause (a)(2) at 50 percent of the daily wage, 
including adjustments as provided in section 176.645.  
    Sec. 88.  Minnesota Statutes 1982, section 176.111, 
subdivision 7, is amended to read: 
    Subd. 7.  [SPOUSE, ONE DEPENDENT CHILD.] (a) If the 
deceased employee leaves a surviving spouse and one dependent 
child, there shall be paid to the surviving spouse for the 
benefit of the spouse and child 60 percent of the daily wage at 
the time of the injury of the deceased until the child is no 
longer a dependent as defined in subdivision 1.  At that time 
there shall be paid to the dependent surviving spouse, at the 
option of the spouse, either:  
    (1) A lump sum settlement equal to ten full years of 
compensation at a rate which is 16 2/3 percent less than the 
last weekly workers' compensation benefit payment, as defined in 
subdivision 8a, while the surviving child was a dependent, 
computed without regard to section 176.645; or 
    (2) weekly benefits at a rate which is 16-2/3 percent less 
than the last weekly workers' compensation benefit payment, as 
defined in subdivision 8a, while the surviving child was a 
dependent, for a period of ten years, including adjustments as 
provided in section 176.645.  
    (b) A surviving spouse who remarries shall receive:  
    (1) Compensation, for the benefit of the dependent child, 
according to the allocation provided in subdivision 10, until 
the child is no longer a dependent as defined in subdivision 1; 
and 
    (2) A lump sum settlement, for the benefit of the surviving 
spouse, equal to two full years of weekly benefits in an amount 
which equals the difference between the benefit otherwise 
payable under clause (a) and the amount payable to the dependent 
child pursuant to clause (b)(1).  
    Sec. 89.  Minnesota Statutes 1982, section 176.111, 
subdivision 8, is amended to read: 
    Subd. 8.  [SPOUSE, TWO DEPENDENT CHILDREN.] (a) If the 
deceased employee leaves a surviving spouse and two dependent 
children, there shall be paid to the surviving spouse for the 
benefit of the spouse and children 66-2/3 percent of the daily 
wage at the time of the injury of the deceased until the 
youngest last dependent child is no longer dependent.  At that 
time the dependent surviving spouse shall be paid, at the option 
of the spouse, either:  
    (1) A lump sum settlement equal to ten full years of 
compensation at a rate which is 25 percent less than the last 
weekly workers' compensation benefit payment, as defined in 
subdivision 8a, while the last surviving child was a dependent, 
computed without regard to section 176.645; or 
    (2) weekly benefits at a rate which is 25 percent less than 
the last weekly workers' compensation benefit payment, as 
defined in subdivision 8a, while the surviving child was a 
dependent, for a period of ten years, adjusted according to 
section 176.645.  
    (b) A surviving spouse who remarries shall receive 
compensation, for the benefit of the children, allocated 
according to subdivision 10, until the youngest dependent child 
is no longer dependent as defined in subdivision 1 and, for the 
benefit of the surviving spouse, a lump sum settlement equal to 
two full years of weekly benefits in an amount which equals the 
difference between the benefit otherwise payable pursuant to 
clause (a) and the amount payable to the dependent children 
allocated according to subdivision 10, computed without regard 
to section 176.645.  
    Sec. 90.  Minnesota Statutes 1982, section 176.111, is 
amended by adding a subdivision to read:  
    Subd. 9a.  [REMARRIAGE OF SPOUSE.] A surviving spouse who 
remarries and is receiving benefits under subdivisions 6, 7, or 
8 shall continue to be eligible to receive weekly benefits for 
the remaining period that the spouse is entitled to receive 
benefits pursuant to this section.  
    Sec. 91.  Minnesota Statutes 1982, section 176.111, 
subdivision 18, is amended to read: 
    Subd. 18.  [BURIAL EXPENSE.] In all cases where death 
results to an employee from a personal injury arising out of and 
in the course of employment, the employer shall pay the expense 
of burial, not exceeding in amount $1,000 $2,500.  In case any 
dispute arises as to the reasonable value of the services 
rendered in connection with the burial, such its reasonable 
value shall be determined and approved by the commissioner of 
the department of labor and industry, a compensation judge, or 
workers' compensation court of appeals, in cases upon appeal, 
before payment, after such reasonable notice to interested 
parties as is required by the commissioner of the department of 
labor and industry.  If the deceased leave no dependents, no 
compensation is payable, except as provided by this chapter. 
    Sec. 92.  Minnesota Statutes 1982, section 176.121, is 
amended to read: 
    176.121 [COMMENCEMENT OF COMPENSATION.] 
    In cases of temporary total or temporary partial disability 
no compensation shall be is allowed for the three calendar days 
after the disability commenced, except as provided by section 
176.135, nor in any case unless the employer has actual 
knowledge of the injury or is notified thereof within the period 
specified in section 176.141.  If such the disability continues 
for ten calendar days or longer, such the compensation shall be 
is computed from the commencement of the disability.  Disability 
is deemed to commence on the first calendar day or fraction of a 
calendar day that the employee is unable to work.  
    Sec. 93.  [176.129] [CREATION OF THE SPECIAL COMPENSATION 
FUND.] 
    Subdivision 1.  [DEPOSIT OF FUNDS.] The special 
compensation fund is created for the purposes provided for in 
this chapter.  The state treasurer is the custodian of the 
special compensation fund.  Sums paid to the commissioner 
pursuant to this section shall be deposited with the state 
treasurer for the benefit of the fund and used to pay the 
benefits under this chapter.  Any interest or profit accruing 
from investment of these sums shall be credited to the special 
compensation fund.  Subject to the provisions of this section, 
all the powers, duties, functions, obligations, and rights 
vested in the special compensation fund immediately prior to the 
effective date of this section are transferred to and vested in 
the special compensation fund recreated by this section.  All 
rights and obligations of employers with regard to the special 
compensation fund which existed immediately prior to the 
effective date of this section continue, subject to the 
provisions of this section.  
    Subd. 2.  [PAYMENTS TO FUND, DEATH.] In every case of death 
of an employee resulting from personal injury arising out of and 
in the course of employment where there are no persons entitled 
to monetary benefits of dependency compensation, the employer 
shall pay to the commissioner the sum of $25,000 for the benefit 
of the special compensation fund.  In every case of death of an 
employee resulting from personal injury arising out of and in 
the course of employment where there are no persons entitled to 
at least $25,000 in monetary benefits of dependency 
compensation, the employer shall pay to the commissioner for the 
benefit of the special compensation fund the difference between 
the amounts actually paid for the dependency benefits and 
$25,000; but in no event shall the employer pay the commissioner 
less than $5,000.  
    Subd. 3.  [PAYMENTS TO FUND, INJURY.] If an employee 
suffers a personal injury resulting in permanent partial 
disability, temporary total disability, temporary partial 
disability, permanent total disability, or death and the 
employee or the employee's dependents are entitled to 
compensation under sections 176.101 or 176.111 the employer 
shall pay to the commissioner a lump sum amount, without any 
interest deduction, equal to 20 percent of the total 
compensation payable.  The rate under this subdivision shall 
remain constant and applies to injuries occurring after June 1, 
1971, and prior to January 1, 1984, for payments made on or 
after January 1, 1984.  This payment is to be credited to the 
special compensation fund and shall be in addition to any 
compensation payments made by the employer under this chapter. 
Payment shall be made as soon as the amount is determined and 
approved by the commissioner.  
    Subd. 4.  [TIME OF INJURY.] Subdivision 3 applies to all 
workers' compensation payments paid under sections 176.101, 
176.102, 176.111, or 176.135, for an injury or death occurring 
on or after June 1, 1971, but before January 1, 1984.  
    Payments made for personal injuries that occurred prior to 
June 1, 1971, shall be assessed at the rate in effect on the 
date of occurrence.  
    Subd. 5.  [DETERMINATION OF AMOUNT PAYABLE.] (a) In 
addition to assessments under subdivisions 2 and 3, an employer 
shall, beginning in calendar year 1984, pay an assessment as 
provided in this subdivision.  The assessment base shall be 
determined according to a method established by rule adopted by 
the commissioner.  In determining this method, the commissioner 
shall consider, among other things, the frequency of indemnity 
claims, equity, potential for retaliation by other states 
against Minnesota insurers, administrative convenience, records 
maintained by employer's insurers and self-insurers, 
verification of underlying records, and degree of risk 
refinement.  The assessment base shall not be determined by paid 
losses.  
    (b) Using the assessment base method established in clause 
(a), the commissioner shall annually determine the amount of the 
assessment base of each employer.  
    (c) The commissioner shall annually establish a uniform 
percentage rate to be applied to the assessment base determined 
pursuant to clause (b).  In establishing this rate, the 
commissioner shall consider, among other things, the likely 
expenditures to be made by the special fund in the next calendar 
year, the current fiscal status of the fund, future expenditure 
trends, and the assessments estimated to be collected under 
subdivisions 2 and 3.  The assessment rate multiplied by the 
assessment base of an employer is the assessment amount payable 
under this subdivision.  The total amount assessed against all 
employers under this subdivision shall not exceed $25,000,000 in 
calendar year 1984.  The total amount which may annually be 
assessed under this subdivision may be increased by up to ten 
percent beginning on January 1, 1985, and each January 1 
thereafter.  
    (d) An amount assessed pursuant to this subdivision is 
payable to the commissioner within 45 days of mailing notice of 
the amount due.  
    Subd. 6.  [PAYMENTS OUT OF FUND.] The workers' compensation 
division, a compensation judge, the workers' compensation court 
of appeals, or district court in cases before them shall direct 
the distribution of benefits provided by this chapter.  These 
benefits are payable in the same manner as other payments of 
compensation.  
    Subd. 7.  [REFUNDS.] In case deposit is or has been made 
under subdivision 2 and dependency later is shown, or if deposit 
is or has been made pursuant to subdivision 2 or 3 by mistake or 
inadvertence, or under circumstances that justice requires a 
refund, the state treasurer is authorized to refund the deposit 
under order of the commissioner, a compensation judge, the 
workers' compensation court of appeals, or a district court. 
There is appropriated to the commissioner from the fund an 
amount sufficient to make the refund and payment.  
    Subd. 8.  [COMMISSIONER AS ADMINISTRATOR.] The commissioner 
is the administrator of the special compensation fund.  The 
special fund shall be designated a party in an action regarding 
any right, obligation, and liability of the special fund.  The 
state treasurer, as custodian, does not have standing in an 
action determining any right, obligation, or liability of the 
special fund.  The attorney general shall represent the special 
fund in all legal matters in which the special fund has an 
interest.  
    Subd. 9.  [POWERS OF FUND.] In addition to powers granted 
to the special compensation fund by this chapter the fund may do 
the following:  
    (a) sue and be sued in its own name;  
    (b) intervene in or commence an action under this chapter 
or any other law, including, but not limited to, intervention or 
action as a subrogee to the division's right in a third-party 
action, any proceeding under this chapter in which liability of 
the special compensation fund is an issue, or any proceeding 
which may result in other liability of the fund or to protect 
the legal right of the fund;  
    (c) enter into settlements including but not limited to 
structured, annuity purchase agreements with appropriate parties 
under this chapter;  
    (d) contract with another party to administer the special 
compensation fund; and 
    (e) take any other action which an insurer is permitted by 
law to take in operating within this chapter.  
    Subd. 10.  [PENALTY.] Sums paid to the commissioner 
pursuant to this section shall be in the manner prescribed by 
the commissioner.  The commissioner may impose a penalty of up 
to 15 percent of the amount due under this section but not less 
than $500 in the event payment is not made in the manner 
prescribed.  
    Subd. 11.  [ADMINISTRATIVE PROVISIONS.] The accounting, 
investigation, and legal costs necessary for the administration 
of the programs financed by the special compensation fund shall 
be paid from the fund during each biennium commencing July 1, 
1981.  Staffing and expenditures related to the administration 
of the special compensation fund shall be approved through the 
regular budget and appropriations process.  
    Subd. 12.  [REPORT OF COMMISSIONER.] The commissioner shall 
report biennially to the governor and to the legislature as to 
the financial status of the special compensation fund.  The 
report shall include a statement of the receipts and the 
disbursements for the period covered.  
    Subd. 13.  [EMPLOYER REPORTS.] All employers shall make 
reports to the commissioner as required for the proper 
administration of this section and section 176.131.  
    Sec. 94.  Minnesota Statutes 1982, section 176.131, 
subdivision 1, is amended to read: 
    Subdivision 1.  If an employee incurs personal injury and 
suffers disability that is substantially greater, because of a 
preexisting physical impairment, than what would have resulted 
from the personal injury alone, the employer shall pay all 
compensation provided by this chapter, but he the employer shall 
be reimbursed from the special compensation fund for all 
compensation paid in excess of 52 weeks of monetary benefits and 
$2,000 in medical expenses, subject to the following exceptions: 
    If the personal injury alone results in permanent partial 
disability to a scheduled member under section 176.101 the 
schedule adopted by the commissioner pursuant to section 
176.105, the monetary and medical expense limitations shall not 
apply and the employer shall be is liable for such the 
compensation, medical expense, and retraining rehabilitation 
attributable to the permanent partial disability, and he may be 
reimbursed from the special compensation fund only for 
compensation paid in excess of such the disability. 
    Sec. 95.  Minnesota Statutes 1982, section 176.131, 
subdivision 1a, is amended to read:  
    Subd. 1a.  If an employee is employed in an on the job 
retraining program pursuant to section 176.102 and the employee 
incurs a personal injury that aggravates the personal injury for 
which the employee has been certified to enter the on the job 
retraining program, the on the job training employer shall pay 
the medical expenses and compensation required by this chapter, 
but and shall be reimbursed from the special compensation fund 
for the compensation and medical expense that is attributable to 
the aggravated injury.  The employer, at the time of the 
personal injury for which the employee has been certified for 
retraining, is liable for the portion of the disability that is 
attributable to that injury.  
    Sec. 96.  Minnesota Statutes 1982, section 176.131, 
subdivision 2, is amended to read: 
    Subd. 2.  If the employee's personal injury shall result 
results in disability or death, and if the injury, death, or 
disability would not have occurred except for the preexisting 
physical impairment registered with the special compensation 
fund, the employer shall pay all compensation provided by this 
chapter, but and shall be fully reimbursed from the special 
compensation fund for such the compensation only where the 
permanent physical impairment contributing to the second injury 
is diabetes, hemophilia or seizures except that this full 
reimbursement shall not be made for cardiac disease or a 
condition registered pursuant to subdivision 8, clauses (t) or 
(u) unless the commissioner by rule provides otherwise. 
    Sec. 97.  Minnesota Statutes 1982, section 176.131, 
subdivision 3, is amended to read:  
    Subd. 3.  To entitle the employer to secure reimbursement 
from the special compensation fund, the following provisions 
must be complied with: 
    (a) Provisions of section 176.181, subdivisions 1 and 2. 
    (b) The employee with a preexisting physical impairment 
must have been registered with the commissioner of labor and 
industry prior to the employee's personal injury or within 180 
days after notice of the employee's personal injury is received 
by the employer.  Registration subsequent to the injury shall be 
based on a medical report or record made prior to the injury 
indicating the preexisting physical impairment.  
    Sec. 98.  Minnesota Statutes 1982, section 176.131, 
subdivision 4, is amended to read:  
    Subd. 4.  Any employer who hires or retains in his its 
employment any person who has a physical impairment shall file a 
formal registration for each such the employee with the 
commissioner of the department of labor and industry in such on 
a form as prescribed by the commissioner may require.  
    Sec. 99.  Minnesota Statutes 1982, section 176.131, 
subdivision 5, is amended to read:  
    Subd. 5.  Registration under this section may be made by 
the employee or any employer provided: 
    (a) registration shall be is accompanied by satisfactory 
evidence of such the physical impairment; 
    (b) registration shall be is in effect as long as said the 
impairment exists; 
    (c) upon request, a registered employee shall be furnished 
by the commissioner of the department of labor and industry with 
a registration card evidencing the fact of registration, and 
such other facts as the commissioner of the department of labor 
and industry deems advisable.  
    Sec. 100.  Minnesota Statutes 1982, section 176.131, 
subdivision 6, is amended to read:  
    Subd. 6.  When the employer claims reimbursement from the 
special compensation fund after paying compensation as 
prescribed by this section, he the employer shall file with the 
commissioner of the department of labor and industry written 
notice of intention to claim reimbursement in accordance with 
the rules and regulations of adopted by the commissioner of the 
department of labor and industry.  
    Sec. 101.  Minnesota Statutes 1982, section 176.131, 
subdivision 7, is amended to read:  
    Subd. 7.  Under subdivisions 1 and 2, an occupational 
disease may be deemed to be the personal (second) injury. 
    If the subsequent disability for which reimbursement is 
claimed is an occupational disease, and if, subsequent to 
registration as provided by subdivisions 4 and 5, the employee 
has been employed by the employer in employment similar to that 
which initially resulted in such the occupational disease, no 
reimbursement shall be paid to the employer.  
    Sec. 102.  Minnesota Statutes 1982, section 176.131, 
subdivision 8, is amended to read:  
    Subd. 8.  As used in this section the following terms have 
the meanings given them: 
    "Physical impairment" means any physical or mental 
condition that is permanent in nature, whether congenital or due 
to injury, disease or surgery and which is or is likely to be a 
hindrance or obstacle to obtaining employment provided except 
that, physical impairment as used herein is limited to the 
following: 
    (a) Epilepsy, 
    (b) Diabetes, 
    (c) Hemophilia, 
    (d) Cardiac disease, 
    (e) Partial or entire absence of thumb, finger, hand, foot, 
arm or leg, 
    (f) Lack of sight in one or both eyes or vision in either 
eye not correctable to 20/40, 
    (g) Residual disability from poliomyelitis, 
    (h) Cerebral Palsy, 
    (i) Multiple Sclerosis, 
    (j) Parkinson's disease, 
    (k) Cerebral vascular accident, 
    (l) Chronic Osteomyelitis, 
    (m) Muscular Dystrophy, 
    (n) Thrombophlebitis, 
    (o) Brain tumors, 
    (p) Pott's disease, 
    (q) Seizures, 
    (r) Cancer of the bone, 
    (s) Leukemia, 
    (o) (t) Any other physical impairment for which resulting 
in a disability rating of at least 50 weeks or more of weekly 
benefits would be payable as permanent partial disability ten 
percent of the whole body if the physical impairment were 
evaluated according to standards used in workers' compensation 
proceedings, and 
    (p) (u) Any other physical impairments of a permanent 
nature which the workers' compensation court of appeals 
commissioner may by rule prescribe; 
    "Compensation" has the meaning defined in section 176.011; 
    "Employer" includes insurer; 
    "Disability" means, unless otherwise indicated, any 
condition causing either temporary total, temporary partial, 
permanent total, permanent partial, death, medical expense, or 
retraining rehabilitation.  
    Sec. 103.  Minnesota Statutes 1982, section 176.132, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBLE RECIPIENTS.] (a) An employee who 
has suffered personal injury prior to the effective date of 
clause (b) for which benefits are payable under section 176.101 
and who has been totally disabled for more than 104 weeks shall 
be eligible for supplementary benefits as hereinafter prescribed 
in this section after 104 weeks have elapsed and for the 
remainder of his the total disablement.  Regardless of the 
number of weeks of total disability, no totally disabled person 
shall be is ineligible for supplementary benefits after four 
years have elapsed since the first date of his the total 
disability, except as provided by clause (b), provided that all 
periods of disability are caused by the same injury. 
    (b) An employee who has suffered personal injury after the 
effective date of this clause is eligible to receive 
supplementary benefits after the employee has been receiving 
temporary total or permanent total benefits for 208 weeks. 
Regardless of the number of weeks of total disability, no person 
who is receiving temporary total compensation shall be 
ineligible for supplementary benefits after four years have 
elapsed since the first date of the total disability, provided 
that all periods of disability are caused by the same injury.  
    Sec. 104.  Minnesota Statutes 1982, section 176.132, is 
amended by adding a subdivision to read:  
    Subd. 5.  [ROUNDING OF PAYMENTS.] A payment made under this 
section shall be rounded up to the nearest whole dollar.  
    Sec. 105.  Minnesota Statutes 1982, section 176.134, 
subdivision 4, is amended to read: 
    Subd. 4.  [ADMINISTRATION.] The commissioner of labor and 
industry shall administer the reopened case fund as part of the 
special compensation fund provided that the reopened case fund 
is under separate accounting and audit procedures from the 
special fund. 
    Sec. 106.  Minnesota Statutes 1982, section 176.135, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MEDICAL, CHIROPRACTIC, PODIATRIC, 
SURGICAL, HOSPITAL.] The employer shall furnish such any 
medical, chiropractic, podiatric, surgical and hospital 
treatment, including nursing, medicines, medical, chiropractic, 
podiatric, and surgical supplies, crutches and apparatus, 
including artificial members, or, at the option of the employee, 
if the employer has not filed notice as hereinafter provided, 
Christian Science treatment in lieu of medical treatment, 
chiropractic medicine and medical supplies, as may reasonably be 
required at the time of the injury and any time thereafter to 
cure and relieve from the effects of the injury.  Such This 
treatment shall include treatments necessary to physical 
rehabilitation.  The employer shall furnish replacement or 
repair for artificial members, glasses, or spectacles, 
artificial eyes, podiatric orthotics, dental bridge work, 
dentures or artificial teeth, hearing aids, canes, crutches or 
wheel chairs damaged by reason of an injury arising out of and 
in the course of the employment.  In case of his inability or 
refusal seasonably to do so the employer shall be is liable for 
the reasonable expense incurred by or on behalf of the employee 
in providing the same.  The employer shall pay for the 
reasonable value of nursing services by a member of the 
employee's family in cases of permanent total disability.  
Orders of a compensation judge the commissioner or medical 
services review board with respect to this subdivision may be 
reviewed by the workers' compensation court of appeals on 
petition of an aggrieved party or by writ of certiorari to the 
supreme court.  
    Sec. 107.  Minnesota Statutes 1982, section 176.135, 
subdivision 3, is amended to read:  
    Subd. 3.  [LIMITATION OF LIABILITY.] The pecuniary 
liability of the employer for the treatment, articles and 
supplies required by this section shall be limited to such the 
charges therefor as prevail in the same community for similar 
treatment, articles and supplies furnished to injured persons of 
a like standard of living when the same are paid for by the 
injured persons.  On this basis the compensation judge 
commissioner, medical services review board, or workers' 
compensation court of appeals on appeal may determine the 
reasonable value of all such services and supplies and the 
liability of the employer is limited to the amount so determined.
    Sec. 108.  Minnesota Statutes 1982, section 176.136, is 
amended to read:  
    176.136 [MEDICAL FEE REVIEW.] 
    The commissioner of insurance shall by rule establish 
procedures for determining whether or not the charge for a 
health service is excessive.  In order to accomplish this 
purpose, the commissioner of insurance shall consult with 
insurers, associations and organizations representing the 
medical and other providers of treatment services and other 
appropriate groups.  The procedures established by the 
commissioner of insurance shall limit the charges allowable for 
medical, chiropractic, podiatric, surgical, hospital and other 
health care provider treatment or services, as defined and 
compensable under section 176.135, to the 75th percentile of 
usual and customary fees or charges based upon billings for each 
class of health care provider during all of the calendar year 
preceding the year in which the determination is made of the 
amount to be paid the health care provider for the billing.  The 
procedures established by the commissioner for determining 
whether or not the charge for a health service is excessive 
shall be structured to encourage providers to develop and 
deliver services for rehabilitation of injured workers.  The 
procedures shall incorporate the provisions of sections 144.701, 
144.702, and 144.703 to the extent that the commissioner finds 
that these provisions effectively accomplish the intent of this 
section or are otherwise necessary to insure that quality 
hospital care is available to injured employees.  If the 
commissioner of insurance, a compensation judge, medical 
services review board, the workers' compensation court of 
appeals or a district court determines that the charge for a 
health service or medical service is excessive, no payment in 
excess of the reasonable charge for that service shall be made 
under this chapter nor may the provider collect or attempt to 
collect from the injured employee or any other insurer or 
government amounts in excess of the amount payable under this 
chapter; however, the commissioner of insurance shall by rule 
establish procedures allowing for a provider to appeal such 
determination.  The commissioner of insurance shall contract 
with a review organization as defined in section 145.61 for the 
purposes listed in section 145.61, subdivision 5, and report to 
the legislature by January 15, 1983 and thereafter on January 15 
of every odd-numbered year, regarding the delivery of medical 
and health care services, including rehabilitation services, 
under the workers' compensation laws of this state. 
    The commissioner of insurance shall also conduct a study of 
the qualifications and background of rehabilitation consultants 
and vendors providing services under section 176.102 for the 
purpose of determining whether there are adequate professional 
standards provided, including safeguards to protect against 
conflicts of interest. 
    The commissioner of insurance shall adopt temporary rules 
in order to implement the provisions of this subdivision.  
Notwithstanding the provisions of section 14.14, subdivision 1, 
and any amendments, the temporary rules adopted by the 
commissioner of insurance pursuant to this subdivision may be 
extended for an additional 180 days if the procedures for 
adoption of a rule pursuant to sections 14.13 to 14.20 or 14.21 
to 14.28, and other provisions of the administrative procedure 
act related to final agency action and rule adoption have not 
been concluded. 
     Any rules adopted by the commissioner of insurance pursuant 
to this section shall remain in effect but may be amended, 
modified, or repealed only by the commissioner of labor and 
industry.  
    Sec. 109.  [176.138] [MEDICAL DATA; ACCESS.] 
    Notwithstanding any other state laws related to the privacy 
of medical data or any private agreements to the contrary, the 
release of medical data related to a current claim for 
compensation under this chapter to the employee, employer, or 
insurer who are parties to the claim, or to the department of 
labor and industry, shall not require prior approval of any 
party to the claim.  Requests for pertinent data shall be made 
in writing to the person or organization that collected or 
currently possesses the data.  The data shall be provided by the 
collector or possessor within seven working days of receiving 
the request.  In all cases of a request for the data, except 
when it is the employee who is making the request, the employee 
shall be sent written notification of the request by the party 
requesting the data at the same time the request is made.  This 
data shall be treated as private data by the party who requests 
or receives the data and the employee or the employee's attorney 
shall be provided with a copy of all data requested by the 
requester.  
    Medical data which is not directly related to a current 
injury or disability shall not be released without prior 
authorization of the employee.  
    The commissioner may impose a penalty of up to $200 payable 
to the special compensation fund against a party who does not 
release the data in a timely manner.  A party who does not treat 
this data as private pursuant to this section is guilty of a 
misdemeanor.  
    Sec. 110.  Minnesota Statutes 1982, section 176.155, 
subdivision 3, is amended to read:  
    Subd. 3.  [REFUSAL TO BE EXAMINED.] If the injured employee 
refuses to comply with any reasonable request for examination, 
his the right to compensation may be suspended by order of the 
division, a compensation judge or workers' compensation court of 
appeals in a matter before it, and no compensation shall be paid 
while he the employee continues in such the refusal. 
    Sec. 111.  Minnesota Statutes 1982, section 176.155, 
subdivision 5, is amended to read: 
    Subd. 5.  [TESTIMONY OF EXAMINING PHYSICIANS HEALTH CARE 
PROVIDER.] Any physician or other health care provider 
designated by the commissioner of the department of labor and 
industry, compensation judge, or workers' compensation court of 
appeals or whose services are furnished or paid for by the 
employer, who treats or who makes, examines, or is present at 
any examination, of an injured employee, may be required to 
testify as to any knowledge acquired by him the physician or 
health care provider in the course of such the treatment or 
examination relative to the injury or disability resulting 
therefrom from the injury only if the commissioner or a 
compensation judge makes a written finding that the appearance 
of the physician or health care provider is crucial to the 
accurate determination of the employee's disability.  In all 
other cases all evidence related to health care must be 
submitted by written report as prescribed by the chief hearing 
examiner.  A party may cross-examine by deposition a physician 
or health care provider who has examined or treated the 
employee.  If a physician or health care provider is not 
available for cross-examination prior to the hearing and the 
physician's or health care provider's written report is 
submitted at the hearing, the compensation judge shall, upon 
request of the adverse party, require the physician or health 
care provider to testify at the hearing for the purpose of being 
cross-examined by the adverse party.  All written evidence 
relating to health care must be submitted prior to or at the 
time of the hearing and no evidence shall be considered which 
was submitted after the hearing unless the compensation judge 
orders otherwise. 
    Sec. 112.  Minnesota Statutes 1982, section 176.179, is 
amended to read: 
    176.179 [PAYMENTS OF COMPENSATION RECEIVED IN GOOD FAITH.] 
    Notwithstanding section 176.521, subdivision 3, or any 
other provision of this chapter to the contrary, except as 
provided in this section, no lump sum or weekly payment, or 
settlement, which is voluntarily paid to an injured employee or 
the survivors of a deceased employee in apparent or seeming 
accordance with the provisions of this chapter by an employer or 
insurer, or is paid pursuant to an order of the workers' 
compensation division, a compensation judge, or court of appeals 
relative to a claim by an injured employee or his the employee's 
survivors, and received in good faith by the employee or his the 
employee's survivors shall be refunded to the paying employer or 
insurer in the event that it is subsequently determined that the 
payment was made under a mistake in fact or law by the employer 
or insurer.  When the payments have been made to a person who is 
entitled to receive further payments of compensation for the 
same injury, the mistaken compensation may be taken as a credit 
against future benefit entitlement; provided, however, that the 
credit applied against further payments of temporary total 
disability, temporary partial disability, permanent total 
disability, retraining benefits or death benefits shall not 
exceed 20 percent of the amount that would otherwise be payable. 
    Sec. 113.  Minnesota Statutes 1982, section 176.181, is 
amended by adding a subdivision to read:  
    Subd. 2a.  [APPLICATION FEE.] Every initial application 
filed pursuant to subdivision 2 requesting authority to 
self-insure shall be accompanied by a fee of $1,000.  The fee is 
not refundable.  
    Sec. 114.  Minnesota Statutes 1982, section 176.182, is 
amended to read:  
    176.182 [BUSINESS LICENSES OR PERMITS; COVERAGE REQUIRED.] 
    Every state or local licensing agency shall withhold the 
issuance of a license or permit to operate a business in 
Minnesota until the applicant presents acceptable evidence of 
compliance with the workers' compensation insurance coverage 
requirement of section 176.181, subdivision 2.  
    Neither the state nor any governmental subdivision thereof 
of the state shall enter into any contract for the doing of any 
public work before receiving from all other contracting parties 
acceptable evidence of compliance with the workers' compensation 
insurance coverage requirement of section 176.181, subdivision 2.
    This section shall not be construed to create any liability 
on the part of the state or any governmental subdivision to pay 
workers' compensation benefits or to indemnify the special 
compensation fund, an employer, or insurer who pays workers' 
compensation benefits.  
    Sec. 115.  Minnesota Statutes 1982, section 176.183, 
subdivision 1, is amended to read:  
    Subdivision 1.  When any employee shall sustain sustains an 
injury arising out of and in the course of his employment while 
in the employ of an employer, other than the state or its 
political subdivisions, not insured or self-insured as provided 
for in this chapter, the employee or his the employee's 
dependents shall nevertheless receive benefits as provided for 
therein in this chapter from the special compensation fund, and 
the state treasurer as custodian of such fund shall have 
commissioner has a cause of action against such the employer for 
reimbursement for all moneys paid out or to be paid out, and, in 
the discretion of the court, as punitive damages an additional 
amount not exceeding 50 percent of all moneys paid out or to be 
paid out.  An action to recover such the moneys shall be 
instituted unless the custodian commissioner determines that no 
recovery is possible.  All moneys recovered shall be deposited 
in the general fund.  There shall be no payment from the special 
compensation fund if there is liability for the injury under the 
provisions of section 176.215, by an insurer or self-insurer. 
    Sec. 116.  Minnesota Statutes 1982, section 176.183, 
subdivision 1a, is amended to read:  
    Subd. 1a.  When an employee or his the employee's dependent 
is entitled to benefits under this chapter from a self-insurer, 
present or past, other than the state and its municipal 
subdivisions, but the self-insurer fails to be paid them pay the 
benefits, the employee or his the employee's dependents, 
regardless of the date when the accident, personal injury, 
occupational disease, or death occurred, shall nevertheless 
receive such the benefits from the special compensation fund, 
and.  The state treasurer as custodian of such fund shall have 
commissioner has a cause of action against such the 
self-insuring employer for reimbursement, for all moneys 
benefits and other expenditures paid out or to be paid out and, 
in the discretion of the court, as the self-insurer is liable 
for punitive damages in an additional amount not to exceed 50 
percent of the total of all moneys benefits and other 
expenditures paid out or to be paid out.  The commissioner shall 
institute an action to recover such moneys shall be instituted 
the total expenditures from the fund unless the custodian 
commissioner determines that no recovery is possible.  All 
moneys proceeds recovered shall be deposited in the general fund.
    Sec. 117.  Minnesota Statutes 1982, section 176.183, is 
amended by adding a subdivision to read:  
    Subd. 3.  (a) Notwithstanding subdivision 2, the 
commissioner may direct payment from the special compensation 
fund for compensation payable pursuant to subdivisions 1 and 1a, 
including benefits payable under sections 176.102 and 176.135, 
prior to issuance of an order of a compensation judge or the 
workers' compensation court of appeals directing payment or 
awarding compensation.  
    (b) The commissioner may suspend or terminate an order 
under clause (a) for good cause as determined by the 
commissioner.  
    Sec. 118.  Minnesota Statutes 1982, section 176.183, is 
amended by adding a subdivision to read:  
    Subd. 4.  If the commissioner authorizes the special fund 
to commence payment under this section, the commissioner shall 
serve by certified mail notice upon the employer and other 
interested parties of the intention to commence payment.  This 
notice shall be served at least ten calendar days before 
commencing payment and shall be mailed to the last known address 
of the parties.  The notice shall include a statement that 
failure of the employer to respond within ten calendar days of 
the date of service will be deemed acceptance by the employer of 
the proposed action by the commissioner and will be deemed a 
waiver of defenses the employer has to a subrogation or 
indemnity action by the commissioner.  At any time prior to 
final determination of liability, the employer may appear as a 
party and present defenses the employer has, whether or not an 
appearance by the employer has previously been made in the 
matter.  The commissioner has a cause of action against the 
employer to recover compensation paid by the special fund under 
this section.  
    Sec. 119.  Minnesota Statutes 1982, section 176.185, 
subdivision 1, is amended to read:  
    Subdivision 1.  [NOTICE OF COVERAGE, TERMINATION, 
CANCELLATION.] Within ten days after the issuance of a policy of 
insurance covering the liability to pay compensation under this 
chapter written by any an insurer licensed to insure such 
liability in this state, the insurer shall file notice of 
coverage with the commissioner of the department of labor and 
industry under regulations and on forms prescribed by the 
commissioner of the department of labor and industry.  No policy 
shall be canceled by the insurer within the policy period nor 
terminated upon its expiration date until a notice in writing 
shall be is delivered or mailed to the insured and filed with 
the commissioner of the department of labor and industry, fixing 
the date on which it is proposed to cancel it, or declaring that 
the insurer does not intend to renew the policy upon the 
expiration date.  Such A cancellation or termination shall is 
not become effective until 30 days after written notice has been 
filed with the commissioner of the department of labor and 
industry in a manner prescribed by the commissioner unless prior 
to the expiration of said the 30-day period the employer obtains 
other insurance coverage or an order exempting him the employer 
from carrying insurance as provided in section 176.181.  Upon 
receipt of said the notice the commissioner of the department of 
labor and industry shall notify the insured that he the insured 
must obtain coverage from some other licensed carrier and that, 
if unable to do so, he the insured shall request the 
Compensation Rating Bureau commissioner of insurance to 
designate some carrier to issue a require the issuance of a 
policy as provided in section 79.25 79.251, subdivision 4.  Upon 
a cancellation or termination of a policy by the insurer the 
employer is entitled to have a policy assigned to him in 
accordance with sections 79.24 to 79.27 79.251 and 79.252.  
Notice of cancellation or termination by the insured shall be 
served upon the insurer by written statement to that effect 
mailed or delivered to the insurer.  Upon receipt of such the 
notice the insurer shall notify the commissioner of the 
department of labor and industry of the cancellation or 
termination and thereupon the commissioner of the department of 
labor and industry shall ask the employer for the reasons for 
his the cancellation or termination and notify him the employer 
of his the duty under this chapter to insure his the employer's 
employees. 
    Sec. 120.  Minnesota Statutes 1982, section 176.185, is 
amended by adding a subdivision to read:  
    Subd. 10.  [DATA COLLECTION CONTRACTS.] The commissioner 
may contract with other parties regarding the collection of 
appropriate data to assist in meeting the requirements of this 
section.  
    Sec. 121.  [176.186] [RECORDS FROM OTHER STATE AGENCIES.] 
    Notwithstanding any other state law to the contrary, the 
commissioner may obtain from the department of revenue, 
department of economic security, and office of the secretary of 
state, or any other state agency, upon request, names or lists 
of employers doing business in the state.  This information 
shall be treated by the commissioner in the manner provided by 
chapter 13 and shall be used only for insurance verification by 
the commissioner.  
    Sec. 122.  Minnesota Statutes 1982, section 176.191, is 
amended by adding a subdivision to read: 
    Subd. 5.  Where a dispute exists between an employer, 
insurer, the special compensation fund, the reopened case fund, 
or the workers' compensation reinsurance association, regarding 
benefits payable under this chapter, the dispute may be 
submitted with consent of all interested parties to binding 
arbitration pursuant to the rules of the American arbitration 
association.  The decision of the arbitrator shall be conclusive 
with respect to all issues presented except as provided in 
subdivisions 6 and 7.  Consent of the employee is not required 
for submission of a dispute to arbitration pursuant to this 
section and the employee is not bound by the results of the 
arbitration.  An arbitration award shall not be admissible in 
any other proceeding under this chapter.  Notice of the 
proceeding shall be given to the employee.  
    The employee, or any person with material information to 
the facts to be arbitrated, shall attend the arbitration 
proceeding if any party to the proceeding deems it necessary. 
Nothing said by an employee in connection with any arbitration 
proceeding may be used against the employee in any other 
proceeding under this chapter.  Reasonable expenses of meals, 
lost wages, and travel of the employee or witnesses in attending 
shall be reimbursed on a pro rata basis.  Arbitration costs 
shall be paid by the parties, except the employee, on a pro rata 
basis.  
    Sec. 123.  Minnesota Statutes 1982, section 176.191, is 
amended by adding a subdivision to read: 
    Subd. 6.  If the employee commences an action under this 
chapter for benefits arising out of the same injury which 
resulted in the dispute arbitrated under subdivision 5, and if 
the benefits awarded to the employee under the employee's claim 
are inconsistent with the arbitration decision, any increase in 
benefits over those paid pursuant to the arbitration proceeding 
is paid by the party or parties who ordinarily would have been 
required to pay the increased benefits but for the arbitration. 
Any reimbursement from the employee of any decrease in benefits 
from those paid pursuant to the arbitration is paid to the party 
or parties who previously had paid the increased benefits.  The 
provisions of this subdivision apply regardless of whether more 
or fewer employers and insurers or the special fund have been 
added or omitted as parties to the employee's subsequent action 
after arbitration.  
    Sec. 124.  Minnesota Statutes 1982, section 176.191, is 
amended by adding a subdivision to read: 
    Subd. 7.  If an employee brings an action under the 
circumstances described in subdivision 6, the parties to the 
previous arbitration may be represented at the new action by a 
common or joint attorney.  
    Sec. 125.  Minnesota Statutes 1982, section 176.191, is 
amended by adding a subdivision to read: 
    Subd. 8.  No attorney's fees shall be awarded under either 
section 176.081, subdivision 8, or 176.191 against any employer 
or insurer in connection with any arbitration proceeding unless 
the employee chooses to retain an attorney to represent the 
employee's interests during arbitration.  
    Sec. 126.  Minnesota Statutes 1982, section 176.195, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [ADDITIONAL GROUNDS.] Where an insurer or agent 
of an insurer has failed to comply with provisions of this 
chapter, other than the provisions in subdivision 1, the 
commissioner of insurance may revoke the license of the insurer 
to write workers' compensation insurance.  
    Sec. 127.  Minnesota Statutes 1982, section 176.195, 
subdivision 2, is amended to read:  
    Subd. 2.  [COMMENCEMENT OF PROCEEDINGS.] Such The 
commissioner of insurance may act under subdivision 1 or 
subdivision 1a upon his own motion, the recommendation of the 
commissioner of the department of labor and industry, the chief 
hearing examiner, or the workers' compensation court of appeals, 
or the complaint of any interested person.  
    Sec. 128.  Minnesota Statutes 1982, section 176.195, is 
amended by adding a subdivision to read:  
    Subd. 7.  [REPORT TO COMMISSIONER OF INSURANCE.] The 
commissioner may send reports to the commissioner of insurance 
regarding compliance with this chapter by insurers writing 
workers' compensation insurance.  A report may include a 
recommendation for revocation of an insurer's license under this 
section and may also recommend the imposition of other penalties 
which may be imposed upon insurers by the commissioner of 
insurance.  
    Sec. 129.  Minnesota Statutes 1982, section 176.221, is 
amended to read: 
    176.221 [PAYMENT OF COMPENSATION AND TREATMENT CHARGES, 
COMMENCEMENT.] 
    Subdivision 1.  [COMMENCEMENT OF PAYMENT.] Within 14 days 
of notice to or knowledge by the employer of an injury 
compensable under this chapter the payment of temporary total 
compensation due pursuant to section 176.101, subdivision 1, 
shall commence.  Commencement of payment by an employer or 
insurer does not waive any rights to any defense the employer 
may have on any claim or incident either with respect to the 
compensability of the claim under chapter 176 or the amount of 
the compensation due.  Where there are multiple employers, the 
first employer shall pay, unless it is shown that the injury has 
arisen out of employment with the second or subsequent 
employer.  When If the employer or insurer has commenced payment 
of compensation under this subdivision but determines within 30 
days of notice to or knowledge by the employer of the injury 
that the disability is not a result of a personal injury, 
payment of compensation may be discontinued terminated upon 
notice of discontinuance pursuant to section 176.241 the filing 
of a notice of denial of liability.  Upon the determination 
termination, payments made may be recovered by the employer if 
the commissioner or compensation judge finds that the employee's 
claim of work related disability was not made in good faith.  A 
notice of denial of liability must state in detail specific 
reasons explaining why the claimed injury or occupational 
disease was determined not to be within the scope and course of 
employment and shall include the name and telephone number of 
the person making this determination.  
    Subd. 2.  [GRANT OF EXTENSION.] Upon application made 
within 30 days after the date on which the first payment was 
due, the commissioner may grant an extension of time within 
which to determine liability.  The extension shall not exceed 30 
days.  
    Subd. 3.  [PAYMENTS TO SPECIAL COMPENSATION FUND.] Where an 
employer or insurer fails to begin payment of compensation, 
charges for treatment under section 176.135 or retraining 
expenses under 176.102, subdivision 9 pursuant to subdivision 1, 
or to file a denial of liability within the 14-day period 
referred to in subdivision 1, or to request an extension of time 
within 30 days after the date on which the first payment was 
due, he it shall pay to the special compensation fund an amount 
equal to the total amount of compensation to which the employee 
is entitled because of the injury.  In addition, each day 
subsequent to the end of the period and until a to receive up to 
the date compensation payment is made to the injured employee, 
the person responsible for payment of compensation shall pay to 
the special compensation fund an amount equal to the total 
compensation to which the injured employee is entitled. 
    Subd. 4.  [FAILURE TO MAKE PAYMENTS AFTER EXTENSION.] Where 
an employer or insurer has been granted an extension of time 
within which to determine liability and fails to begin payment 
of compensation, charges for treatment under section 176.135 or 
retraining expenses under 176.102, subdivision 9 or to file a 
denial of liability within such extended period, he shall make 
the payments provided in subdivision 3.  
    Subd. 5.  [DOUBLE PAYMENTS TO SPECIAL COMPENSATION FUND.] 
Where an employer or insurer has failed to make the payments 
required by subdivision 3 or subdivision 4 within 30 days from 
the end of the period or the extended period, the division may 
require him to pay to the special compensation fund, each day 
subsequent to the end of the period and until a compensation 
payment is made to the injured employee, a sum equal to double 
the total amount of compensation to which the employee is 
entitled because of the injury.  In addition, the person 
responsible for compensation, charges for treatment under 
section 176.135 or retraining expenses under 176.102, 
subdivision 9 shall pay to the special compensation fund an 
amount equal to the total amount of compensation to which the 
employee is entitled.  
    Subd. 6.  [ASSESSMENT OF PENALTIES.] The division or 
compensation judge shall assess the penalty payments provided 
for by subdivisions subdivision 3 to 5, and any increase in 
benefit payments provided by section 176.225, subdivision 5, 
against either the employer or the insurer depending upon to 
whom the delay is attributable in making payment of 
compensation, charges for treatment under section 176.135 or 
retraining expenses under 176.102, subdivision 9.  The insurer 
is not liable for a penalty payment assessed against it even if 
the delay is attributable to the employer. 
    An insurer who has paid a penalty under this section may 
recover from the employer the portion of the penalty 
attributable to the acts of the employer which resulted in the 
delay.  A penalty paid by an insurer under this section which is 
attributable to the fault of the employer shall be treated as a 
loss in an experience rated plan, retrospective rating plan, or 
dividend calculation where appropriate.  
    Subd. 6a.  [MEDICAL, REHABILITATION, ECONOMIC RECOVERY, AND 
IMPAIRMENT COMPENSATION.] The penalties provided by this section 
apply in cases where payment for treatment under section 
176.135, rehabilitation expenses under section 176.102, 
subdivisions 9 and 11, economic recovery compensation or 
impairment compensation are not made in a timely manner as 
required by law or by rule adopted by the commissioner.  
    Subd. 7.  [INTEREST.] Any payment of compensation, charges 
for treatment under section 176.135 or retraining rehabilitation 
expenses under 176.102, subdivision 9 not made when due shall 
bear interest at the rate of eight percent per annum a year from 
the due date to the date the payment is made or the rate set by 
section 549.09, subdivision 1, whichever is greater. 
    Subd. 8.  [METHOD AND TIMELINESS OF PAYMENT.] Payment of 
compensation under this chapter shall be by immediately payable 
negotiable instrument, or if by any other method, arrangements 
shall be available to provide for the immediate negotiability of 
the payment instrument.  
    All payment of compensation shall be made within 14 days of 
the filing of an appropriate order by the division or a 
compensation judge, unless the order is to be appealed, or where 
if a different time period is provided by this chapter.  
    Subd. 9.  [PAYMENT OF FULL WAGES.] An employer who pays 
full wages to an injured employee is not relieved of the 
obligation for reporting the injury and making a liability 
determination within the times specified in this chapter.  If 
the full wage is paid the employer's insurer or self-insurer 
shall report the amount of this payment to the division and 
determine the portion which is temporary total compensation for 
purposes of administering this chapter and special compensation 
fund assessments.  The employer shall also make appropriate 
adjustments to the employee's payroll records to assure that the 
employee's sick leave or the vacation time is not 
inappropriately charged against the employee, and to assure the 
proper income tax treatment for the payments.  
    Sec. 130.  Minnesota Statutes 1982, section 176.225, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GROUNDS.] Upon reasonable notice and 
hearing or opportunity to be heard, the division, a compensation 
judge, or upon appeal, the workers' compensation court of 
appeals or the supreme court may award compensation, in addition 
to the total amount of compensation award, of up to 25 percent 
of that total amount where an employer or insurer has: 
    (a) instituted a proceeding or interposed a defense which 
does not present a real controversy but which is frivolous or 
for the purpose of delay; or, 
    (b) unreasonably or vexatiously delayed payment; or, 
    (c) neglected or refused to pay compensation; or, 
    (d) intentionally underpaid compensation. 
    Sec. 131.  Minnesota Statutes 1982, section 176.225, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXAMINATION OF BOOKS AND RECORDS.] To determine 
whether an employer or insurer has become subject to is liable 
for the payment provided by subdivision 1, the division, a 
compensation judge, or the workers' compensation court of 
appeals upon appeal may examine the books and records of the 
person employer or insurer relating to the payment of 
compensation, and may require him the employer or insurer to 
furnish any other information relating to the payment of 
compensation. 
    Sec. 132.  Minnesota Statutes 1982, section 176.225, 
subdivision 3, is amended to read: 
    Subd. 3.  [DEFIANCE OF DIVISION, COMPENSATION JUDGE, OR 
WORKERS' COMPENSATION COURT OF APPEALS, COMPLAINT.] Where If an 
insurer persists in an action or omission listed in subdivision 
1, or does not permit the examination of his books and records, 
or fails to furnish such information as required, the 
commissioner or the chief hearing examiner shall file a written 
complaint with the insurance commissioner.  The complaint shall 
specify the facts and recommend the revocation of the license of 
the insurer to do business in this state.  The workers' 
compensation court of appeals may also file such a written 
complaint. 
    Sec. 133.  Minnesota Statutes 1982, section 176.231, 
subdivision 3, is amended to read: 
    Subd. 3.  [PHYSICIANS, CHIROPRACTORS, OR SURGEONS OTHER 
HEALTH CARE PROVIDERS TO REPORT INJURIES.] Where A physician or 
surgeon, chiropractor, or other health care provider who has 
examined, treated, or has special knowledge of an injury to an 
employee which may be compensable under this chapter, he shall 
report to the commissioner of the department of labor and 
industry all facts relating to the nature and extent of the 
injury and disability, and the treatment provided for the injury 
or disability, within ten days after he the health care provider 
has received a written request for such the information from the 
commissioner of the department of labor and industry or any 
member or employee thereof an authorized representative of the 
commissioner. 
    Sec. 134.  Minnesota Statutes 1982, section 176.231, 
subdivision 4, is amended to read: 
    Subd. 4.  [SUPPLEMENTARY REPORTS.] The commissioner of the 
department of labor and industry, or any member or employee 
thereof, an authorized representative may require the filing of 
such supplementary reports of accidents as it deems is deemed 
necessary to provide information required by law. 
    Supplementary reports related to the current nature and 
extent of the employee's injury, disability, or treatment may be 
requested from a physician, surgeon, chiropractor, or other 
health care provider by the commissioner or a representative, an 
employer or insurer, or the employee.  
    Sec. 135.  Minnesota Statutes 1982, section 176.231, 
subdivision 5, is amended to read: 
    Subd. 5.  [FORMS FOR REPORTS.] The commissioner of the 
department of labor and industry shall prescribe forms for use 
in making the reports required by this section.  The first 
report of injury form which the employer submits with reference 
to an accident shall include a declaration by the employer that 
he the employer will pay the compensation the law requires.  
Forms for reports required by this section shall be as 
prescribed by the commissioner and shall be the only forms used 
by an employer, insurer, self-insurer, group self-insurer, and 
all health care providers.  
    Sec. 136.  Minnesota Statutes 1982, section 176.231, 
subdivision 9, is amended to read: 
    Subd. 9.  [USES WHICH MAY BE MADE OF REPORTS.] Reports 
filed with the commissioner of the department of labor and 
industry under this section may be used in hearings held under 
this chapter, and for the purpose of state investigations and 
for statistics. 
    The division or office of administrative hearings or 
workers' compensation court of appeals may permit an attorney at 
law who represents an employer, insurer, or an employee or his a 
dependent to examine its file in a compensation case if the 
attorney furnishes written authorization to do so from his the 
attorney's client.  Reports filed under this section and other 
information the commissioner has regarding injuries or deaths 
shall be made available to the workers' compensation reinsurance 
association for use by the association in carrying out its 
responsibilities under chapter 79.  
    Sec. 137.  Minnesota Statutes 1982, section 176.231, 
subdivision 10, is amended to read: 
    Subd. 10.  [FAILURE TO FILE REQUIRED REPORT, PENALTY.] 
Where If an employer, physician, or surgeon has failed 
chiropractor, or other health provider fails to file with the 
commissioner of the department of labor and industry any report 
required by this section in the manner and within the time 
limitations prescribed, he shall forfeit to the state $50 or 
otherwise fails to provide a report required by this section in 
the manner provided by this section, the commissioner may impose 
a penalty of up to $200 for each such failure. 
    The attorney general shall sue in a civil action to collect 
this penalty upon notification of the matter by the commissioner 
of the department of labor and industry.  The commissioner of 
the department of labor and industry shall certify to the 
attorney general each failure to report immediately upon its 
occurrence. 
    Penalties collected by the state under this subdivision 
shall be paid into the state treasury. 
    Sec. 138.  Minnesota Statutes 1982, section 176.241, 
subdivision 2, is amended to read: 
    Subd. 2.  [CONTINUANCE OF EMPLOYER'S LIABILITY; 
SUSPENSION.] Except where when the commissioner orders 
otherwise, until the copy of the notice and reports have been 
filed with the division, the liability of the employer to make 
payments of compensation continues. 
    When the division has received a copy of the notice of 
discontinuance, the statement of facts and available medical 
reports, the duty of the employer to pay compensation is 
suspended pending an investigation, hearing, and determination 
of the matter by the division or compensation judge as provided 
in the following subdivisions. 
    Sec. 139.  Minnesota Statutes 1982, section 176.241, 
subdivision 4, is amended to read: 
    Subd. 4.  [ORDER.] When the hearing has been held, and he 
has duly considered the evidence duly considered, the person who 
held the hearing shall promptly enter an order directing the 
payment of further compensation or confirming the termination of 
compensation.  Where If the order confirms a termination of 
compensation, the commissioner of labor and industry shall 
notify the employer of the action.  This notification the 
service and filing of the order relieves the employer from 
further liability for compensation subject to the right of 
review afforded by this chapter, and to the right of the 
division compensation judge to set aside the order at any time 
prior to the review and to grant a new hearing pursuant to this 
chapter.  Once an appeal to the workers' compensation court of 
appeals is filed, a compensation judge may not set aside the 
order but the court of appeals may remand the matter to a 
compensation judge for a new hearing.  
    Sec. 140.  [176.242] [ADMINISTRATIVE CONFERENCE PRIOR TO 
DISCONTINUANCE OF COMPENSATION.] 
    Subdivision 1.  [NOTICE OF DISCONTINUANCE; GROUNDS.] If an 
employer or insurer files a notice of intention to discontinue, 
the employer or insurer shall serve a copy upon the commissioner 
and the employee including detailed reasons for the intended 
discontinuance.  
    Subd. 2.  [CONFERENCE, REQUEST.] (a) The employee has ten 
calendar days from the date the notice was served to request 
that the commissioner schedule an administrative conference to 
determine the appropriateness of the proposed discontinuance. 
The employer or insurer may request an administrative conference 
under this section at any time whether or not a notice of intent 
to discontinue is filed.  The commissioner shall schedule an 
administrative conference to be held within ten calendar days 
after the commissioner receives timely notice of the employee's 
or employer's request for an administrative conference.  
    (b) If the employee does not, in a timely manner, request 
that the commissioner schedule an administrative conference, or 
fails to appear, without good cause, at a scheduled conference, 
compensation may be discontinued, subject to the employee's 
right under section 176.241.  
    (c) An employee or employer may request a continuance of a 
scheduled administrative conference.  If the commissioner 
determines that good cause exists for granting a continuance, 
the commissioner may grant the continuance which shall not 
exceed ten calendar days.  No more than one continuance shall be 
granted.  If the employee is granted a continuance, compensation 
need not be paid during the period of continuance but shall 
recommence upon the date of the conference unless the 
commissioner orders otherwise.  
    (d) The purpose of an administrative conference is to 
determine whether reasonable grounds exist for a discontinuance. 
    Subd. 3.  [NECESSITY FOR CONFERENCE, COMMISSIONER'S 
DISCRETION.] The commissioner may determine that no 
administrative conference is necessary under this section and 
permit the employer or insurer to discontinue compensation, 
subject to the employee's right under section 176.241.  
     The commissioner may permit compensation to be discontinued 
at any time after a notice pursuant to subdivision 1 is received 
even if no administrative conference has been held, if the 
commissioner deems the discontinuance appropriate based on the 
information the commissioner has, subject to the employee's 
right under section 176.241.  
    Subd. 4.  [ADMINISTRATIVE DECISION.] After considering the 
information provided by the parties at the administrative 
conference, the commissioner shall issue to all interested 
parties a written administrative decision permitting or denying 
the employer's or insurer's request to discontinue 
compensation.  The decision shall be issued within five working 
days from the close of the conference.  The commissioner's 
decision is binding on the parties.  The commissioner shall 
advise all parties of the right to petition to the chief hearing 
examiner under section 176.241 and of the right to be 
represented by an attorney at a hearing before a compensation 
judge.  
    Subd. 5.  [OBJECTION TO DECISION.] If the commissioner 
grants the employer's or insurer's request to discontinue 
compensation and the employee objects to the discontinuance, the 
employee may file an objection to discontinuance under section 
176.241.  If the commissioner denies the request to discontinue 
compensation the employer or insurer may file a petition to 
discontinue under section 176.241.  
    Subd. 6.  [EFFECT OF DECISION, APPEAL.] If an objection or 
a petition is filed under subdivision 5, the commissioner's 
administrative decision remains in effect and the parties 
obligations or rights to pay or receive compensation are 
governed by the commissioner's administrative decision, pending 
a determination by a compensation judge. 
    Subd. 7.  [DECISION AS NOTICE.] If a party proceeds under 
subdivision 5, the commissioner's administrative decision under 
this section is deemed required notice to interested parties 
under section 176.241 and the commissioner's obligations under 
section 176.241 are deemed to be met.  
    Subd. 8.  [WHEN DISCONTINUANCE ALLOWED.] Compensation shall 
not be discontinued prior to an administrative conference except 
as provided under subdivision 2, clause (b), or if the 
commissioner determines pursuant to subdivision 3 that no 
administrative conference is necessary.  The employer may 
discontinue compensation immediately without having an 
administrative conference if the discontinuance is because the 
employee has returned to work.  
    Subd. 9.  [NOTICE, FORMS.] Notice to the employee under 
subdivision 1 shall be on forms prescribed by the commissioner.  
    Subd. 10.  [FINES, VIOLATIONS.] An employer or insurer who 
discontinues compensation in violation of this section is 
subject to a fine of up to $500 for each violation.  Fines shall 
be paid to the special compensation fund.  
    Subd. 11.  [APPLICATION.] This section is applicable to any 
notice of intent to discontinue which is filed after the 
effective date of this section, even if the injury occurred 
prior to the effective date of this section.  
    Sec. 141.  [176.243] [ADMINISTRATIVE CONFERENCE FOLLOWING 
RETURN TO WORK, SUBSEQUENT INABILITY TO WORK.] 
    Subdivision 1.  [CONFIRMATION OF EMPLOYMENT AND WAGES.] If 
an insurer has discontinued compensation to an employee because 
the employee has returned to work, the insurer shall contact the 
employee 14 calendar days after return to work.  The insurer 
shall determine whether the employee is still employed after 14 
days and shall also ascertain the wages being paid to the 
employee.  
    Subd. 2.  [NOTICE TO COMMISSIONER.] If upon contact the 
insurer determines that the employee is not working or that the 
employee is earning a lower wage than at the time of the injury, 
the insurer shall notify the commissioner in writing of this 
fact and shall also state the actions that the insurer has taken 
or intends to take regarding payment of compensation.  A copy of 
this notice shall be served by the insurer by certified mail to 
the employee.  
    Subd. 3.  [EMPLOYEE REQUEST FOR ADMINISTRATIVE CONFERENCE.] 
If the employee objects to the action of the insurer regarding 
payment of compensation upon the cessation of work by the 
employee, the employee may request an administrative conference 
with the commissioner to resolve disputed issues.  A request for 
an administrative conference shall be made within ten calendar 
days after service of the notice on the employee.  If the 
employee requests an administrative conference the commissioner 
shall schedule a conference to be held within 14 calendar days 
after the commissioner receives the request.  
    Subd. 4.  [ADMINISTRATIVE DECISION.] After considering the 
information provided by the parties at the administrative 
conference the commissioner shall issue to all interested 
parties a written administrative decision regarding payment of 
compensation.  The commissioner's decision is binding upon the 
parties and the rights and obligations of the parties are 
governed by the decision.  The commissioner shall advise all 
parties of the right to petition to the chief hearing examiner 
under section 176.241 and of the right to be represented by an 
attorney at a hearing before a compensation judge.  A party 
aggrieved by the commissioner's decision may proceed under 
section 176.241.  
    Subd. 5.  [DECISION BINDING PENDING COMPENSATION JUDGE 
DECISION.] If an aggrieved party files a petition under section 
176.241, the commissioner's administrative decision remains in 
effect pending a determination by a compensation judge.  
    Subd. 6.  [DECISION AS NOTICE.] If a party proceeds under 
section 176.241, the commissioner's administrative decision is 
deemed to fulfill the division's obligations under section 
176.241.  
    Subd. 7.  [OBLIGATIONS PRIOR TO ADMINISTRATIVE DECISION.] 
If an insurer has not voluntarily commenced compensation 
following the employee's cessation of work the insurer is not 
obligated to do so until an administrative conference is held 
and unless the commissioner determines that compensation shall 
be commenced.  
    Subd. 8.  [NECESSITY OF ADMINISTRATIVE CONFERENCE.] If the 
commissioner deems it appropriate, based upon information the 
commissioner has, the commissioner may determine that an 
administrative conference is not necessary, in which case a 
party may proceed under section 176.241.  
    Subd. 9.  [APPLICATION OF SECTION.] This section applies 
only when the employee has received at least 45 days of 
temporary total or temporary partial compensation prior to 
return to work and if no rehabilitation plan has been approved.  
    This section is applicable to all cases in which a return 
to work has occurred after the effective date of this section 
even if the injury occurred prior to the effective date.  
    Subd. 10.  [NOTICE FORMS.] A notice under this section 
shall be on a form prescribed by the commissioner.  
    Subd. 11.  [FINES, VIOLATIONS.] An employer or insurer who 
violates this section is subject to a fine of up to $500 for 
each violation which shall be paid to the special compensation 
fund.  
    Sec. 142.  Minnesota Statutes 1982, section 176.281, is 
amended to read: 
    176.281 [ORDERS, DECISIONS, AND AWARDS; FILING; SERVICE.] 
    When the commissioner or compensation judge or office of 
administrative hearings or the workers' compensation court of 
appeals has rendered an a final order, decision, or award, or 
amendment to an order, decision, or award, it shall be filed 
immediately with the commissioner.  Where If the commissioner, 
compensation judge, office of administrative hearings, or 
workers' compensation court of appeals has rendered an a final 
order, decision, or award, or amendment thereto, the 
commissioner or the office of administrative hearings or the 
workers' compensation court of appeals shall immediately serve a 
copy upon every party in interest, together with a notification 
of the time date the same order was filed. 
    Sec. 143.  Minnesota Statutes 1982, section 176.285, is 
amended to read: 
    176.285 [SERVICE OF PAPERS AND NOTICES.] 
    Service of papers and notices shall be by mail or by such 
other means otherwise as the commissioner of the department of 
labor and industry directs or the chief hearing examiner 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 
he 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 such nonreceipt or delay, an allowance shall be made for the 
party's failure to assert a right within the prescribed time.  
    The commissioner of the department of labor and industry 
and the chief hearing examiner shall keep a careful record of 
each service including the time when made ensure that proof of 
service of all papers and notices served by their respective 
agencies is placed in the official file of the case.  
    Sec. 144.  [176.312] [AFFIDAVIT OF PREJUDICE.] 
    An affidavit of prejudice for cause may be filed by a party 
to the claim against a compensation judge, in the same manner as 
an affidavit of prejudice is filed pursuant to law or rule of 
district court.  The filing of an affidavit of prejudice against 
a compensation judge has the same effect and shall be treated in 
the same manner as in district court.  
    Sec. 145.  Minnesota Statutes 1982, section 176.321, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FILING, SERVICE.] Within twenty 20 days 
after he has been served with a copy service of the petition, an 
adverse party may shall serve and file a verified an answer to 
the petition.  When he files the answer, The party shall also 
serve a copy of the answer on the petitioner or his the 
petitioner's attorney. 
    Within five days after he has been served with a copy of 
the answer, the petitioner may file a verified reply admitting 
or denying new matter set forth in the answer.  
    Sec. 146.  Minnesota Statutes 1982, section 176.331, is 
amended to read: 
    176.331 [AWARD BY DEFAULT.] 
    Where If an adverse party has failed fails to file and 
serve an answer, if and the petitioner presents proof of such 
this fact, the commissioner or compensation judge shall may 
enter whatever award or order to which the petitioner is 
entitled on the basis of the facts alleged in the petition, but 
the compensation judge may require proof of an alleged fact.  If 
the commissioner requires such proof, he the commissioner shall 
request the chief hearing examiner to assign the matter to a 
compensation judge to summarily hear and determine the same for 
an immediate hearing and to promptly make an prompt award or 
other order. 
    Where in such a default case the petition does not state 
facts sufficient to support an award, the compensation judge 
shall give the petitioner or his the petitioner's attorney 
written notice of this deficiency.  The petitioner may thereupon 
serve and file another petition as in the case of an original 
petition. 
    Sec. 147.  Minnesota Statutes 1982, section 176.341, is 
amended to read: 
    176.341 [HEARING ON PETITION.] 
    Subdivision 1.  [TIME.] When the reply has been filed or 
the time has expired in which to file a reply Upon receipt of a 
matter from the commissioner, the chief hearing examiner shall 
fix a time and place for hearing the petition.  The hearing 
shall be held as soon as practicable and at a time and place 
determined by the chief hearing examiner to be the most 
convenient for the parties, keeping in mind the intent of 
chapter 176 as expressed in section 176.001 and the requirements 
of section 176.306. 
    Subd. 2.  [PLACE.] Unless otherwise ordered by the 
commissioner of the department of labor and industry or 
compensation judge chief hearing examiner, the hearing shall be 
held in the county where the injury or death occurred. 
    Subd. 3.  [NOTICE MAILED TO EACH PARTY.] At least five 30 
days prior to the date of hearing, the workers' compensation 
division chief hearing examiner shall mail a notice of the time 
and place of hearing to each interested party.  This subdivision 
does not apply to hearings which have been continued from an 
earlier date.  In those cases, the notice shall be given in a 
manner deemed appropriate by the chief hearing examiner after 
considering the particular circumstances in each case.  
    Sec. 148.  Minnesota Statutes 1982, section 176.361, is 
amended to read: 
    176.361 [INTERVENTION.] 
    Where A person who has an interest in any matter before the 
workers' compensation court of appeals, or commissioner, or 
compensation judge of such a character that he the person may 
either gain or lose by an order or decision, he may intervene in 
the proceeding by filing an application in writing stating the 
facts which show such the interest. 
    The commissioner of the department of labor and industry 
and workers' compensation court of appeals shall adopt rules to 
govern the procedure for intervention.  
    If the department of public welfare or the department of 
economic security seeks to intervene in any matter before the 
division, a compensation judge or the workers' compensation 
court of appeals, a nonattorney employee of the department, 
acting at the direction of the staff of the attorney general, 
may prepare, sign, serve and file motions for intervention and 
related documents and appear at prehearing conferences.  This 
activity shall not be considered to be the unauthorized practice 
of law.  
    Sec. 149.  Minnesota Statutes 1982, section 176.371, is 
amended to read: 
    176.371 [AWARD OR DISALLOWANCE OF COMPENSATION.] 
    The compensation judge to whom a petition has been assigned 
for hearing, shall hear all competent, relevant evidence 
produced at the hearing, and, as soon after the hearing as 
possible, make findings of fact, conclusions of law,.  All 
questions of fact and law submitted to a compensation judge at 
the hearing shall be disposed of and the judge's decision shall 
be filed with the commissioner within 60 days after the 
submission, unless sickness or casualty prevents a timely 
filing, or the time is extended by written consent of the 
parties, or the chief hearing examiner extends the time for good 
cause.  The compensation judge's decision shall include a 
determination of all contested issues of fact and law and an 
award or disallowance of compensation or other order as the 
pleadings, evidence, this chapter and rule require.  A 
compensation judge's decision shall include a memorandum only if 
necessary to delineate the reasons for the decision or to 
discuss the credibility of witnesses.  A memorandum shall not 
contain a recitation of the evidence presented at the hearing 
but shall be limited to the compensation judge's basis for the 
decision.  
    No part of the salary of a compensation judge shall be paid 
unless the chief hearing examiner determines that all decisions 
of that judge have been issued within the time limit prescribed 
by this section.  
    Sec. 150.  Minnesota Statutes 1982, section 176.421, 
subdivision 3, is amended to read:  
    Subd. 3.  [NOTICE OF APPEAL.] The appellant or his the 
appellant's attorney shall prepare and sign a written notice of 
appeal specifying: 
    (1) the order appealed from; 
    (2) that appellant appeals from the order to the workers' 
compensation court of appeals; 
    (3) the particular finding of fact or conclusion of law 
which he the appellant claims was unwarranted by the evidence or 
procured by fraud, coercion, or other improper conduct; and 
    (4) the testimony or other part of the record of the 
hearing necessary to be transcribed in order for the court of 
appeals to consider the appeal; and, 
    (5) any other ground upon which the appeal is taken.  
    An appeal initiates the preparation of a typewritten 
transcript of the entire record unless the appeal is solely from 
an award of attorney's fees or an award of costs and 
disbursements or unless otherwise ordered by the court of 
appeals.  On appeals from an award of attorney's fees or an 
award of costs and disbursements, the appellant must 
specifically delineate in the notice of appeal the portions of 
the record to be transcribed in order for the court of appeals 
to consider the appeal.  
    Sec. 151.  Minnesota Statutes 1982, section 176.421, 
subdivision 4, is amended to read:  
    Subd. 4.  [SERVICE AND FILING OF NOTICE; COST OF 
TRANSCRIPT.] Within the 30-day period for taking an appeal, the 
appellant shall: 
    (1) serve a copy of the notice of appeal on each adverse 
party; 
    (2) file the original notice, with proof of service by 
admission or affidavit, with the chief hearing examiner and file 
a copy with the commissioner; 
    (3) in order to defray the cost of the preparation of the 
record of the proceedings appealed from, pay to the state 
treasurer, office of administrative hearings account the sum of 
$25; and 
    (4) Submit a request that the chief hearing examiner order 
the preparation of a transcript of that part of the hearing 
delineated in the notice of appeal.  
    A party who desires a transcript of more of the hearing 
than has been requested by the appellant shall, within five 
working days of service of the notice of appeal, make a request 
of the chief hearing examiner that the additional testimony be 
transcribed.  
    The first party requesting the preparation of the 
transcript or any part to file an appeal is liable for the 
original cost of preparation of the transcript. Cross-appellants 
or any other persons requesting a copy of the transcript are 
liable for the cost of the copy.  The cost of a transcript 
prepared by a nongovernmental source shall be paid directly to 
that source and shall not exceed the cost that the source would 
be able to charge the state for the same service.  
    Upon a showing of cause, the chief hearing examiner may 
direct that a transcript be prepared without expense to the 
party requesting its preparation, in which case the cost of the 
transcript shall be paid by the office of administrative 
hearings. 
    All fees received by the office of administrative hearings 
for the preparation of the record for submission to the workers' 
compensation court of appeals or for the cost of transcripts 
prepared by the office shall be deposited in the office of 
administrative hearings account in the state treasury and shall 
be used solely for the purpose of keeping the record of hearings 
conducted under this chapter and the preparation of transcripts 
of those hearings.  
    Sec. 152.  Minnesota Statutes 1982, section 176.421, 
subdivision 6, is amended to read: 
    Subd. 6.  [POWERS OF WORKERS' COMPENSATION COURT OF APPEALS 
ON APPEAL.] On an appeal taken under this section, the workers' 
compensation court of appeals appeals' review is limited to the 
issues raised by the parties in the notice of appeal or by a 
cross-appeal.  In these cases, on those issues raised by the 
appeal, the workers' compensation court of appeals may: 
    (1) disregard the findings of fact which the compensation 
judge has made; 
    (2) examine the record; 
    (3) substitute for the findings of fact made by the 
compensation judge such findings as based on the total evidence 
requires; and, 
    (4) make an award or disallowance of compensation or other 
order as based on the facts and findings require. 
    Sec. 153.  Minnesota Statutes 1982, section 176.421, 
subdivision 7, is amended to read: 
    Subd. 7.  [RECORD OF PROCEEDINGS.] At the division's own 
expense, the commissioner shall make a complete record of all 
proceedings before himself. the commissioner and shall provide a 
stenographer or an audio magnetic recording device to make a the 
record of the proceedings before him. 
    The commissioner shall furnish a transcript of these 
proceedings to any person who requests it and who pays a 
reasonable charge and shall fix the amount of this charge which 
shall be set by the commissioner.  Upon a showing of cause, the 
commissioner may direct that a transcript be prepared without 
expense to the person requesting the transcript, in which case 
the cost of the transcript shall be paid by the division. 
Transcript fees received under this subdivision shall be paid to 
the workers' compensation division account in the state treasury 
and shall be annually appropriated to the division for the sole 
purpose of providing a record and transcripts as provided in 
this subdivision. 
    Sec. 154.  Minnesota Statutes 1982, section 176.442, is 
amended to read: 
    176.442 [APPEALS FROM DECISIONS OF COMMISSIONER OF 
DEPARTMENT OF LABOR AND INDUSTRY.] 
    Any decision or determination of the commissioner of the 
department of labor and industry affecting a right, privilege, 
benefit, or duty which is imposed or conferred under this 
chapter is subject to review by the workers' compensation court 
of appeals.  A person aggrieved by such the determination may 
appeal to the workers' compensation court of appeals by filing a 
notice of appeal with the commissioner in the same manner and 
within the same time as if the appeal were from an order or 
decision of a compensation judge to the workers' compensation 
court of appeals. 
    Sec. 155.  Minnesota Statutes 1982, section 176.461, is 
amended to read: 
    176.461 [SETTING ASIDE AWARD.] 
    Except where when a writ of certiorari has been issued by 
the supreme court and the matter is still pending in that court 
or where if as a matter of law the determination of the supreme 
court cannot be subsequently modified, the workers' compensation 
court of appeals, for cause, at any time after an award, upon 
application of either party and not less than five working days 
after written notice to all interested parties, may set the 
award aside and grant a new hearing and refer the matter for a 
determination on its merits to the chief hearing examiner for 
assignment to a compensation judge, who shall make such findings 
of fact, conclusions of law, and an order of award or 
disallowance of compensation or other order as based on the 
pleadings and the evidence produced and as required by the 
provisions of this chapter shall require or rules adopted under 
it. 
    Sec. 156.  Minnesota Statutes 1982, section 176.521, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPROVAL.] Settlements shall be approved only 
where if the terms conform with this chapter. 
    The division, a compensation judge, the workers' 
compensation court of appeals, and the district court shall 
exercise discretion in approving or disapproving a proposed 
settlement. 
    The parties to the agreement of settlement have the burden 
of proving that the settlement is reasonable, fair, and in 
conformity with this chapter.  A settlement agreement where both 
the employee or his the employee's dependent and the employer or 
insurer and intervenors in the matter are represented by an 
attorney shall be conclusively presumed to be reasonable, fair, 
and in conformity with this chapter except when the settlement 
purports to be a full, final, and complete settlement of an 
employee's right to medical compensation under this chapter or 
rehabilitation under section 176.102.  A settlement which 
purports to do so must be approved by the division, a 
compensation judge, or workers' compensation court of appeals.  
     The conclusive presumption in this subdivision applies to a 
settlement agreement entered into on or after January 15, 1982, 
whether the injury to which the settlement applies occurred 
prior to or on or after January 15, 1982.  
    Sec. 157.  Minnesota Statutes 1982, section 176.521, 
subdivision 2a, is amended to read: 
    Subd. 2a.  [SETTLEMENTS NOT SUBJECT TO APPROVAL.] When a 
settled case is not subject to approval, upon receipt of the 
stipulation for settlement, a compensation judge or, a 
settlement judge, or the workers' compensation court of appeals 
shall immediately sign the award and file it with the 
commissioner.  Payment pursuant to the award shall be made 
within 14 days after it is filed with the commissioner.  The 
commissioner may correct mathematical or clerical errors at any 
time.  
    Sec. 158.  Minnesota Statutes 1982, section 176.521, 
subdivision 3, is amended to read: 
    Subd. 3.  [SETTING ASIDE AWARD UPON SETTLEMENT.] 
Notwithstanding the provisions of section 176.521, subdivision 
1, 2, or 2a, or any provision in the agreement of settlement to 
the contrary, upon the filing of a petition by any party to the 
settlement and after a hearing on the petition, the workers' 
compensation court of appeals may set aside an award made upon a 
settlement, pursuant to this chapter.  In those cases, the 
workers' compensation court of appeals shall refer the matter to 
the chief hearing examiner for assignment to a compensation 
judge for hearing.  
    Sec. 159.  [176.522] [NOTICE TO EMPLOYER.] 
    An employer shall be notified by the insurer 30 days after 
any final valid settlement is approved or otherwise made final 
under any provision of this chapter.  The notice shall include 
all terms of the settlement including the total amount of money 
required to be reserved in order to pay the claim.  
    Sec. 160.  Minnesota Statutes 1982, section 176.561, is 
amended to read: 
    176.561 [WORKERS' COMPENSATION COURT OF APPEALS POWERS AND 
DUTIES AS TO STATE EMPLOYEES; PROCEDURE FOR DETERMINING 
LIABILITY.] 
    The division, a compensation judge and the workers' 
compensation court of appeals have the same powers and duties in 
matters relating to state employees as they have in relation to 
other employees. 
    Except as specifically provided otherwise herein in this 
chapter, the procedure for determining the liability of the 
state for compensation is the same as that applicable in other 
cases. 
    Sec. 161.  Minnesota Statutes 1982, section 176.571, 
subdivision 6, is amended to read: 
    Subd. 6.  [FORMAL HEARING ON OBJECTIONS.] If the 
commissioner of the department of labor and industry shall hold 
determines that a formal hearing on the objections which have 
been filed to the proposed order where the circumstances warrant 
such is warranted, the commissioner shall refer the matter to 
the chief hearing examiner for the assignment of a compensation 
judge who shall hold a hearing.  The hearing shall be before a 
compensation judge.  
    Sec. 162.  [176.572] [CONTRACT WITH INSURANCE CARRIERS.] 
    The commissioner may contract with group health insurance 
carriers or health maintenance organizations to provide health 
care services and reimburse health care payments for injured 
state employees entitled to benefits under this chapter.  
    Sec. 163.  Minnesota Statutes 1982, section 176.66, is 
amended by adding a subdivision to read:  
    Subd. 10.  [MULTIPLE EMPLOYERS OR INSURERS; LIABILITY.] The 
employer liable for the compensation for a personal injury under 
this chapter is the employer in whose employment the employee 
was last exposed in a significant way to the hazard of the 
occupational disease.  In the event that the employer who is 
liable for the compensation had multiple insurers during the 
employee's term of employment, the insurer who was on the risk 
during the employee's last significant exposure to the hazard of 
the occupational disease is the liable party.  Where there is a 
dispute as to which employer is liable under this section, the 
employer in whose employment the employee is last exposed to the 
hazard of the occupational disease shall pay benefits pursuant 
to section 176.191, subdivision 1.  
    Sec. 164.  Minnesota Statutes 1982, section 176.66, is 
amended by adding a subdivision to read:  
    Subd. 11.  [AMOUNT OF COMPENSATION.] The compensation for 
an occupational disease is 66-2/3 percent of the employee's 
weekly wage on the date of injury subject to a maximum 
compensation equal to the maximum compensation in effect on the 
date of last exposure.  The employee shall be immediately 
eligible for supplementary benefits if that employee's 
compensation is less than 65 percent of the statewide average 
weekly wage.  
    Sec. 165.  [176.83] [RULES.] 
    In addition to any other section under this chapter giving 
the commissioner the authority to adopt rules, the commissioner 
may adopt, amend, or repeal rules to implement the provisions of 
this chapter.  The rules include but are not limited to:  
    (a) rules necessary to implement and administer section 
176.102, including the establishment of qualifications necessary 
to be a qualified rehabilitation consultant and the requirements 
to be an approved registered vendor of rehabilitation services.  
    In this regard, the commissioner shall impose fees under 
section 16A.128 sufficient to cover the cost of approving, 
registering and monitoring qualified rehabilitation consultants 
and approved vendors of rehabilitation services.  The rules may 
also provide for penalties to be imposed by the commissioner 
against insurers or self-insured employers who fail to provide 
rehabilitation consultation to employees pursuant to section 
176.102.  
    These rules may also establish criteria for determining 
"reasonable moving expenses" under section 176.102.  
    The rules shall also establish criteria, guidelines, 
methods, or procedures to be met by an employer or insurer in 
providing the initial rehabilitation consultation required under 
this chapter which would permit the initial consultation to be 
provided by an individual other than a qualified rehabilitation 
consultant.  In the absence of rules regarding an initial 
consultation this consultation shall be conducted pursuant to 
section 176.102;  
    (b) rules establishing standards for reviewing and 
evaluating the clinical consequences of services provided by 
qualified rehabilitation consultants, approved registered 
vendors of rehabilitation services, and services provided to an 
employee by health care providers;  
    (c) rules establishing standards and procedures for 
determining whether or not charges for health services or 
rehabilitation services rendered under this chapter are 
excessive.  In this regard, the standards and procedures shall 
be structured to determine what is necessary to encourage 
providers of health services and rehabilitation services to 
develop and deliver services for the rehabilitation of injured 
employees.  
    The procedures shall include standards for evaluating 
hospital care, other health care and rehabilitation services to 
insure that quality hospital, other health care, and 
rehabilitation is available and is provided to injured employees;
    (d) in consultation with the medical services review board 
or the rehabilitation review panel, rules establishing standards 
and procedures for determining whether a provider of health care 
services and rehabilitation services, including a provider of 
medical, chiropractic, podiatric, surgical, hospital or other 
services, is performing procedures or providing services at a 
level or with a frequency that is excessive, based upon accepted 
medical standards for quality health care and accepted 
rehabilitation standards.  
    If it is determined by the commissioner that the level, 
frequency or cost of a procedure or service of a provider is 
excessive according to the standards established by the rules, 
the provider shall not be paid for the excessive procedure, 
service, or cost by an insurer, self-insurer, or group 
self-insurer.  In addition, the provider shall not be reimbursed 
or attempt to collect reimbursement for the excessive procedure, 
service, or cost from any other source, including the employee, 
another insurer, the special compensation fund, or any 
government program.  
    A health or rehabilitation provider who is determined by 
the commissioner to be consistently performing procedures or 
providing services at an excessive level or cost may be 
prohibited from receiving any further reimbursement for 
procedures or services provided under chapter 176.  A 
prohibition imposed on a provider under this clause may be 
grounds for revocation or suspension of the provider's license 
or certificate of registration to provide health care or 
rehabilitation service in Minnesota by the appropriate licensing 
or certifying body.  
    The rules adopted under this clause shall require insurers, 
self-insurers, and group self-insurers to report medical and 
other data necessary to implement the procedures required by 
this clause;  
    (e) rules establishing procedures and standards for the 
certification of physicians, chiropractors, podiatrists, and 
other health care providers in order to assure the coordination 
of treatment, rehabilitation, and other services and 
requirements of chapter 176 for carrying out the purposes and 
intent of this chapter;  
    (f) rules necessary for implementing and administering the 
provisions of sections 176.131, 176.132, 176.134, sections 
176.242 and 176.243; sections 176.251, 176.66 to 176.669, and 
rules regarding proper allocation of compensation under section 
176.111.  Under the rules adopted under section 176.111 a party 
may petition for a hearing before a compensation judge to 
determine the proper allocation.  In this case the compensation 
judge may order a different allocation than prescribed by rule;  
    (g) rules establishing standards or criteria under which a 
physician, podiatrist, or chiropractor is selected or under 
which a change of physician, podiatrist, or chiropractor is 
allowed under section 176.135, subdivision 2;  
    (h) rules to govern the procedure for intervention pursuant 
to section 176.361;  
    (i) joint rules with either or both the workers' 
compensation court of appeals and the chief hearing examiner 
which may be necessary in order to provide for the orderly 
processing of claims or petitions made or filed pursuant to 
chapter 176;  
    (j) rules establishing criteria to be used by the division, 
compensation judge, and workers' compensation court of appeals 
to determine "suitable gainful employment" and "independent 
contractor."  
    The chief hearing examiner shall adopt rules relating to 
procedures in matters pending before a compensation judge in the 
office of administrative hearings.  
    The commissioner may adopt rules regarding requirements 
which must be met by individuals who are employed by insurers or 
self-insurers or claims servicing or adjusting agencies and who 
work as claims adjusters in the field of workers' compensation 
insurance.  
    The commissioner may adopt temporary rules establishing 
qualifications necessary to be a qualified rehabilitation 
consultant and penalties to be imposed against qualified 
rehabilitation consultants or approved vendors who violate this 
chapter or rules, including temporary rules, adopted under this 
chapter.  In addition to the provisions of sections 14.29 to 
14.36, at least one public hearing shall be held prior to the 
adoption of these temporary rules.  
     The commissioner may prescribe forms and other reporting 
procedures to be used by an employer, insurer, medical provider, 
qualified rehabilitation consultant, approved vendor of 
rehabilitation services, attorney, employee, or other person 
subject to the provisions of this chapter. 
    Sec. 166.  [176.84] [SPECIFICITY OF NOTICE OR STATEMENT.] 
    All notices or statements required by this chapter 
including, but not limited to, notices or statements pursuant to 
sections 176.102; 176.221; 176.241; 176.242; and 176.243 shall 
be sufficiently specific to convey clearly, without further 
inquiry, the basis upon which the party issuing the notice or 
statement is acting.  If the commissioner or compensation judge 
determines that a notice or statement is not sufficiently 
specific to meet the standard under this section, the notice or 
statement may be rejected as unacceptable and the party issuing 
it shall be informed of this.  The rejected notice or statement 
may be amended to meet the requirement of this section or a new 
one may be filed.  
    Sec. 167.  [176.85] [PENALTIES; APPEALS.] 
    Subdivision 1.  [APPEAL PROCEDURE.] If the commissioner has 
assessed a penalty against a party subject to this chapter and 
the party believes the penalty is not warranted, the party may 
request that a formal hearing be held on the matter.  Upon a 
request for a hearing the commissioner shall refer the matter to 
the chief hearing examiner for assignment to a compensation 
judge or hearing examiner.  
    The chief hearing examiner shall keep a record of the 
proceeding and provide a record pursuant to section 176.421.  
    The decision of the compensation judge or hearing examiner 
shall be final and shall be binding and enforceable.  The 
decision may be appealed to the workers' compensation court of 
appeals.  
    Subd. 2.  [EXCEPTION.] This section does not apply to 
penalties for which another appeal procedure is provided, 
including but not limited to penalties imposed pursuant to 
section 176.102 or section 84.  
    Subd. 3.  [HEARING COSTS.] For purposes of this section, a 
hearing before a hearing examiner shall be treated in the same 
manner as a hearing before a compensation judge and no costs may 
be charged to the commissioner for the hearing, regardless of 
who hears it.  
    Sec. 168.  Minnesota Statutes 1982, section 268.08, 
subdivision 3, is amended to read: 
    Subd. 3.  [NOT ELIGIBLE.] An individual shall not be 
eligible to receive benefits for any week with respect to which 
he is receiving, has received, or has filed a claim for 
remuneration in an amount equal to or in excess of his weekly 
benefit amount in the form of 
    (1) termination, severance, or dismissal payment or wages 
in lieu of notice whether legally required or not; provided that 
if a termination, severance, or dismissal payment is made in a 
lump sum, the employer may allocate such lump sum payment over a 
period equal to the lump sum divided by the employee's regular 
pay while employed by such employer; provided any such payment 
shall be applied for a period immediately following the last day 
of work but not to exceed 28 calendar days; or 
    (2) vacation allowance paid directly by the employer for a 
period of requested vacation, including vacation periods 
assigned by the employer under the provisions of a collective 
bargaining agreement, or uniform vacation shutdown; or 
    (3) compensation for loss of wages under the workers' 
compensation law of this state or any other state or under a 
similar law of the United States, or under other insurance or 
fund established and paid for by the employer except that this 
does not apply to an individual who is receiving temporary 
partial compensation pursuant to section 176.101, subdivision 3k;
or 
    (4) 50 percent of the pension payments from any fund, 
annuity or insurance maintained or contributed to by a base 
period employer including the armed forces of the United States 
if the employee contributed to the fund, annuity or insurance 
and all of the pension payments if the employee did not 
contribute to the fund, annuity or insurance; or 
    (5) 50 percent of a primary insurance benefit under title 
II of the Social Security Act as amended, or similar old age 
benefits under any act of congress or this state or any other 
state. 
    Provided, that if such remuneration is less than the 
benefits which would otherwise be due under sections 268.03 to 
268.24, he shall be entitled to receive for such week, if 
otherwise eligible, benefits reduced by the amount of such 
remuneration; provided, further, that if the appropriate agency 
of such other state or the federal government finally determines 
that he is not entitled to such benefits, this provision shall 
not apply. 
    Sec. 169.  Minnesota Statutes 1982, section 471.982, 
subdivision 2, is amended to read: 
    Subd. 2.  The commissioner of insurance is authorized to 
promulgate adopt administrative rules, including emergency rules 
pursuant to sections 14.01 to 14.70.  These rules may provide 
standards or guidelines governing the formation, operation, 
administration, dissolution of self insurance pools, and other 
reasonable requirements to further the purpose of this section 
and.  In developing the rules under this section, the 
commissioner shall at a minimum require consider the following:  
    (a) The requirements for self-insuring pools of political 
subdivisions shall be no more restrictive and may be less 
restrictive than the requirements for self-insuring pools of 
private employers;  
    (b) All participants in the pool are jointly and severally 
liable for all claims and expenses of the pool;  
    (b) (c) Each pool shall contract with a service company 
licensed by the commissioner to provide or contract for all 
administrative services required by the pool.  No vendor of risk 
management services or entity administering a self insurance 
plan under this section may transact such business in this state 
unless it is licensed to do so by the commissioner.  An 
applicant for a license shall state in writing the type of 
activities it seeks authorization to engage in and the type of 
services it seeks authorization to provide.  The license shall 
be granted only when the commissioner is satisfied that the 
entity possesses the necessary organization, background, 
expertise, and financial integrity to supply the services sought 
to be offered.  The commissioner may issue a license subject to 
restrictions or limitations upon the authorization, including 
the type of services which may be supplied or the activities 
which may be engaged in.  The license fee shall be $100.  All 
licenses shall be for a period of two years;  
    (c) (d) The service company has sole responsibility for the 
settlement of all claims against the pool or its members for 
which the pool may provide indemnification;  
    (d) (e) A minimum premium volume for each pool shall be 
established.  The minimum premium volume may differ because of 
the kinds of coverage provided, and the limits of liability for 
the coverage;  
    (e) (f) All premiums or other assessments due to the pool 
from members shall be payable prior to the period for which 
coverage is being provided, or at equal intervals throughout the 
period;  
    (f) (g) Premiums shall either be established by an actuary 
approved by the commissioner or shall be premiums filed by a 
licensed rate service organization with reductions permitted 
solely for administrative or premium tax savings neither 
excessive, inadequate, nor unfairly discriminatory; 
    (g) (h) The commissioner may require each pool to purchase 
excess insurance above certain limits and in a particular form.  
The limits or form of the excess insurance may differ based on 
the kinds of coverage offered by a pool, the limits of liability 
of the coverage, and the revenues available to pool members for 
the payment of premiums or assessments;  
    (h) (i) Each pool shall be audited annually by a certified 
public accountant;  
    (i) (j) Whether limitations on the payment of dividends to 
pool members may be established as are necessary to assure the 
solvency of the pool in view of the taxing and levying authority 
of political subdivisions;  
    (j) (k) No participant may withdraw from a pool for a 
period of at least three years after its initial entry into the 
pool;  
    (k) (l) The amount of any liabilities in excess of assets 
shall be assessed to members of the pool within 30 days after a 
deficiency is identified and shall be payable by the member 
within 90 days;  
    (l) (m) The investment policies of the pool shall be 
governed by the laws governing investments by cities pursuant to 
section 475.66;  
    (m) (n) Pools shall be subject to the standards of unfair 
methods of competition and unfair or deceptive acts or practices 
established in chapter 72A;  
    (n) (o) Other requirements that are necessary to protect 
the solvency of the pool, the rights and privileges of claimants 
against the pool, and citizens of the members of the pool shall 
be included in the rules. 
    Sec. 170.  Minnesota Statutes 1982, section 471.982, is 
amended by adding a subdivision to read: 
    Subd. 3.  Self-insurance pools established and open for 
enrollment on a statewide basis by the Minnesota league of 
cities insurance trust, the Minnesota school boards association 
insurance trust or the Minnesota association of counties 
insurance trust are exempt from the requirements of this section.
    Sec. 171.  [CITY OF DULUTH; GROUP WORKER'S COMPENSATION 
SELF-INSURANCE POOLS.] 
    Subdivision 1.  [FORMATION OF POOLS WITH PRIVATE 
EMPLOYERS.] Notwithstanding any contrary provision of other law, 
ordinance, or charter, the city of Duluth may enter into a self- 
insurance pool with private employers to self-insure worker's 
compensation liability of pool members.  Any pool formed 
pursuant to this section shall be operated under bylaws 
established by members of the pool.  The initial bylaws and 
amendments to them shall not be effective unless approved by the 
city of Duluth and the commissioner of insurance.  The bylaws 
shall address the following subjects:  
    (a) Qualifications for group self-insurer membership, 
including underwriting standards.  
    (b) The method of selecting the board of directors, 
including the directors' terms of office.  
    (c) The procedure for amending the bylaws or plan of 
operation.  
    (d) Investment of assets of the fund.  
    (e) Frequency and extent of loss control or safety 
engineering services provided to members.  
    (f) A schedule for payment and collection of premiums.  
    (g) Expulsion procedures, including expulsion for 
nonpayment of premiums and expulsion for excessive losses.  
    (h) Delineation of authority granted to the administrator.  
    (i) Delineation of authority granted to the service company.
    (j) Basis for determining premium contributions by members 
including any experience rating program.  
    (k) Procedures for resolving disputes between members of 
the group, which shall not include submitting them to the 
commissioner.  
    (l) Basis for determining distribution of any surplus to 
the members, or assessing the membership to make up any deficit. 
     (m) Provisions for security to be furnished by private 
employers to insure assessments are paid in case of private 
employer insolvency.  
     The members participating in the pool may establish a joint 
board with appropriate powers to manage the pool.  Each member 
of the pool shall pay to the pool the amounts assessed against 
it pursuant to the bylaws.  A member may withdraw only after it 
has reimbursed the pool for the amounts for which it is 
obligated under the terms of the agreement.  
    Subd. 2.  [APPROVAL OF COMMISSIONER.] A pool formed 
pursuant to this section shall not be effective or begin 
operation until it has been approved by the commissioner of 
insurance in the manner provided in Minnesota Statutes, section 
471.982.  Section 471.982 and any applicable rules adopted 
pursuant to it shall apply to any pool formed pursuant to this 
section.  A pool formed pursuant to this section shall be a 
member of the workers' compensation reinsurance association and 
shall be bound by its plan of operation.  
    Sec. 172.  [APPROPRIATIONS; COMPLEMENT INCREASE.] 
    Subdivision 1.  [DEPARTMENT OF LABOR AND INDUSTRY.] (a) 
There is appropriated to the department of labor and industry 
for the fiscal years ending June 30 of the year indicated from 
the general fund in the state treasury:  
                     1984                   1985
                   $1,947,500             $2,142,400
    The approved complement of the department of labor and 
industry is increased by 90 of which two shall be federally 
funded and 19 shall be from the special compensation fund.  The 
increased complement shall be allocated as follows:  
    (1) workers' compensation administration, 1;  
    (2) records and compliance, 15;  
    (3) rehabilitation service, 20;  
    (4) legal services, 1;  
    (5) settlement and docket, 3;  
    (6) mediation and arbitration, 6;  
    (7) research and education, 8;  
    (8) information management service, 6;  
    (9) state employee fund, 6;  
    (10) general support, 8; and 
    (11) special compensation fund, 19.  
    The appropriation provided by this clause (a) is for the 
purpose of paying for the increased general fund complement and 
expenses related to their duties except that $100,000 shall be 
used for the recodification of chapter 176.  
    The authorized complement for the records and compliance 
section shall be reduced by four positions by June 30, 1985.  
    (b) There is appropriated to the department of labor and 
industry for the fisal years ending June 30 of the year 
indicated from the general fund in the state treasury:  
                     1984                   1985
                   $437,500               $875,000
    The appropriation provided by this clause (b) is for the 
purpose of paying the state's premium to the workers' 
compensation reinsurance association.  The commissioner of 
finance shall transfer to the general fund from each federal 
fund, dedicated or special revenue fund, or revolving fund the 
proportion of premium costs attributable to that fund as 
calculated pursuant to section 10.  The amounts necessary for 
this transfer are appropriated from the various funds in the 
state treasury from which salaries are paid.  
    (c) There is appropriated to the department of labor and 
industry for the fiscal years ending June 30 of the year 
indicated from the special compensation fund in the state 
treasury:  
                     1984                   1985
                   $614,000               $646,400
    The funds appropriated by this clause (c) are to pay the 
expenses of the increased complement provided for the fund by 
clause (a) and expenses related to their duties and to reimburse 
the general fund for legal services performed on behalf of the 
fund by the attorney general.  
    Subd. 2.  [OFFICE OF ADMINISTRATIVE HEARINGS.] There is 
appropriated to the office of administrative hearings for the 
fiscal years ending June 30 of the year indicated from the 
general fund in the state treasury:  
                     1984                   1985
                   $85,400               $86,300
    The approved complement of the office of administrative 
hearings is increased by two.  The appropriation provided by 
this subdivision is for the purpose of paying for the increased 
complement and expenses related to their duties.  
    Subd. 3.  [INSURANCE DIVISION.] There is appropriated to 
the department of commerce for its insurance division for the 
fiscal years ending June 30 of the year indicated from the 
general fund in the state treasury:  
                     1984                   1985
                    $230,800               $229,100
    The approved complement of the insurance division of the 
department of commerce is increased by seven.  The appropriation 
provided by this subdivision is for the purpose of paying for 
the increased complement and expense related to their duties.  
    Subd. 4.  [ATTORNEY GENERAL.] There is appropriated to the 
office of the attorney general for the fiscal years ending June 
30 of the year indicated from the general fund in the state 
treasury:  
                     1984                   1985
                   $201,500               $204,900
    The approved complement of the office of attorney general 
is increased by six.  The appropriation provided by this 
subdivision is for the purpose of providing for the increased 
complement and expenses related to their duties.  
    Sec. 173.  [REPEALER.] 
    Minnesota Statutes 1982, sections 8.31, subdivision 4; 
79.51, subdivision 2; and 79.63 are repealed effective July 1, 
1983.  Minnesota Statutes 1982, sections 175.07; 175.101, 
subdivision 3; 175.36; 176.101, subdivision 3; 176.102, 
subdivision 12; 176.131, subdivisions 9, 10, 11, and 12; 
176.152; and 176.262 are repealed effective January 1, 1984.  
    Sec. 174.  [SEVERABILITY.] 
    If any provision of this act is found to be 
unconstitutional and void, the remaining provisions of the act 
shall remain valid, unless the court finds the valid provisions 
of the article are so essentially and inseparably connected 
with, and so dependent upon, the void provisions that the court 
cannot presume the legislature would have enacted the remaining 
valid provisions without the void one; or unless the court finds 
the remaining valid provisions, standing alone, are incomplete 
and are incapable of being executed in accordance with the 
legislative intent.  
    Sec. 175.  [SMALL BUSINESS PREMIUM COST STUDY.] 
    The commissioner shall conduct a study on the effect of 
sections 44 to 64 on small businesses located in Minnesota, 
including to what extent benefits payable pursuant thereto 
affect small businesses' workers' compensation insurance premium 
costs.  The commissioner shall report to the legislature by 
January 30, 1985.  
    Sec. 176.  [EFFECTIVE DATE.] 
    Sections 1 to 6, 12, 14, 19 to 25, 28, 32, 35 to 41, 69 to 
83, 85, section 86, except for section 86, clause (c) which is 
effective upon the adoption of temporary rules under section 86, 
92, 95, 97 to 101, 110 to 129, except for those portions of 
section 129, subdivision 6a relating to economic recovery 
compensation and impairment compensation which are effective 
upon the adoption of temporary rules under section 86, 130 to 
162, 165 to 167, 169 to 172, and 174 are effective July 1, 
1983.  Sections 8, 17, 18, 26, 27, 31, 34, 84, 87 to 91, 103 to 
109, 163 and 164 are effective October 1, 1983.  Sections 7, 9, 
10, 11, 13, 68, and 93 are effective January 1, 1984.  Sections 
15, 16 and 173 are effective the day after final enactment. 
Sections 29, 30, 33, 42 to 67, 94, 96, 102 and 168 are effective 
upon adoption of temporary rules under section 86. 
    Approved June 7, 1983