Office of the Revisor of Statutes
Minnesota Session Laws - 1984, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1984
CHAPTER 432-S.F.No. 1477
An act relating to workers' compensation; clarifying
the law concerning ridesharing; providing for
miscellaneous changes in the workers' compensation
process; amending Minnesota Statutes 1982, sections
176.135, by adding a subdivision; 176.231, subdivision
1; 176.241, subdivisions 1 and 3, and by adding
subdivisions; 176.271, subdivision 2; 176.351, by
adding a subdivision; Minnesota Statutes 1983
Supplement, sections 79.34, subdivision 1; 176.041,
subdivision 1; 176.101, subdivisions 3a, 3b, 3e, 3g,
3i, 3j, 3l, 3m, 3o, 3q, 3r, and 3t; 176.102,
subdivisions 3a and 9; 176.103, subdivision 3, and by
adding a subdivision; 176.104, subdivisions 1 and 2;
176.129, subdivisions 3, 4, and by adding a
subdivision; 176.135, subdivision 1; 176.136; 176.138;
176.183, subdivision 1; 176.221, subdivisions 1, 3,
and by adding a subdivision; 176.231, subdivision 9;
176.241, subdivision 2; 176.242, subdivisions 1, 2, 6,
and 8; 176.243, subdivision 3; 176.361; 176.421,
subdivision 7; 176.442; 176.66, subdivisions 10 and
11; 176.83; 176.85, subdivision 1; proposing new law
coded in Minnesota Statutes, chapter 176; repealing
Minnesota Statutes 1982, sections 79.22, subdivision
2; and Minnesota Statutes 1983 Supplement, sections
147.02, subdivision 4; 176.051, subdivisions 2, 3, and
4; and 176.129, subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
Section 1. [INTENT.]
The legislature finds that certain provisions enacted in
1983 relating to workers' compensation coverage of injuries or
damages incurred while participating in ridesharing arrangements
have created confusion among employers, employees, insurance
carriers, and the public because of their ambiguous nature and
their uncertain effect on the underlying premises of employer
liability and workers' compensation law. The legislature also
finds that the provisions have not had the intended effect of
encouraging employers to promote ridesharing arrangements, but
that they have had the opposite effect instead. While the
provisions that were enacted were not intended to increase the
scope of employer liability for travel by employees to and from
work, it is feared that that interpretation may someday be given
to the provisions. Therefore, the legislature seeks to clarify
the meaning of those provisions and, by repealing them, to
underscore its intent that the underlying law of employer
liability and workers' compensation regarding employee travel to
and from work is unaltered by the provisions enacted in 1983.
Sec. 2. Minnesota Statutes 1983 Supplement, 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 of finance 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 is not 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 are not subject to
chapters 13, 14, and 15. The reinsurance association is exempt
from taxation under the laws of this state and all property
owned by the association is exempt from taxation. The
reinsurance association is not 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. 3. Minnesota Statutes 1983 Supplement, section
176.041, subdivision 1, is amended to read:
Subdivision 1. [EMPLOYMENTS EXCLUDED.] This chapter does
not apply to a person employed by a common carrier by railroad
engaged in interstate or foreign commerce and who is covered by
the Federal Employers' Liability Act, United States Code, title
45, sections 51 to 60, or other comparable federal law; to a
person employed by a family farm as defined by section 176.011,
subdivision 11a, or the spouse, parent, and child, regardless of
age, of a farmer-employer working for the farmer-employer; to a
partner engaged in a farm operation or a partner engaged in a
business and the spouse, parent, and child, regardless of age,
of a partner in the farm operation or business; to an executive
officer of a family farm corporation; to an executive officer of
a closely held corporation referred to in section 176.012; to a
spouse, parent, or child, regardless of age, of an executive
officer of a family farm corporation as defined in section
500.24, subdivision 2, and employed by that family farm
corporation; to a spouse, parent, or child, regardless of age,
of an executive officer of a closely held corporation referred
to in section 176.012; to another farmer or to a member of the
other farmer's family exchanging work with the farmer-employer
or family farm corporation operator in the same community; to a
person whose employment at the time of the injury is casual and
not in the usual course of the trade, business, profession, or
occupation of 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 this
chapter apply to an officer or a member of a veterans'
organization whose employment relationship arises solely by
virtue of attending meetings or conventions of the veterans'
organization, unless the veterans' organization elects by
resolution to provide coverage under this chapter for the
officer or member.
Neither does the chapter apply to a person employed as a
household worker in, for, or about a private home or household
who earns less than $500 in cash in a three-month period from a
single private home or household provided that a household
worker who has earned $500 or more from the household worker's
present employer in a three-month period within the previous
year is covered by this chapter regardless of whether or not the
household worker has earned $500 in the present quarter.
This chapter does not apply to those persons employed by a
corporation if those persons are related by blood or marriage,
within the third degree of kindred according to the rules of
civil law, to the officers of the corporation, and if the
corporation files a written election with the commissioner 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.
This chapter does not apply to persons covered under the
Domestic Volunteer Service Act of 1973, as amended, 42 U.S.C.
sections 5011, et. seq.
This chapter does not apply to employees injured while
participating in a ridesharing arrangement as defined in section
169.01, subdivision 63, between the employee's residence and
place of employment or terminus near the place of employment.
This chapter does apply if the employer elects to assume
liability coverage under this chapter for persons injured while
participating in ridesharing arrangementsas outlined in section
176.051, subdivision 3.
Sec. 4. [REPEALER.]
Minnesota Statutes 1983 Supplement, section 176.051,
subdivisions 2, 3, and 4 are repealed.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective retroactively to June 10,
1983 except for the provision in section 3 regarding coverage of
persons under 42 U.S.C., sections 5011, et seq., which is
effective the day following final enactment.
ARTICLE 2
MISCELLANEOUS CHANGES
Section 1. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3a, is amended 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 applies to a permanent partial disability incurred
an injury which occurs on or after the adoption of those rules
January 1, 1984.
Sec. 2. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3b, is amended 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 applies to a
permanent partial disability incurred an injury which occurs on
or after the adoption of those rules January 1, 1984.
Sec. 3. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3e, is amended 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 at any time prior to the end of 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.
(c) 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. A job offer may be made before the employee reaches
maximum medical improvement.
(c) (d) 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) (e) 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. Where there is an
administrative conference to determine suitability under section
176.242, the period begins to run on the date of the
commissioner's decision.
(e) (f) 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. 4. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3g, is amended 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 if the employment has not
been substantially interrupted by the injury for any part of the
30 days and the employee is still employed at that job at the
end of the period.
Sec. 5. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3i, is amended 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 at that job 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) Compensation under this subdivision shall not be
escalated pursuant to section 176.645.
(c) (d) 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) (e) 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. 6. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3j, is amended 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 injury, 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 or 3f.
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. 7. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3l, is amended 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. This
compensation shall not be escalated pursuant to section 176.645.
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. 8. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3m, is amended 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 if the employment has not been substantially interrupted
by the injury for any part of the 30 days and the employee is
still employed at that job at the end of the period.
Sec. 9. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3o, is amended 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 was initially 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 and no permanent total
weekly compensation is payable for any period during which
economic recovery compensation has already been 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. 10. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3q, is amended 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 initially 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 if
the employment has not been substantially interrupted by the
injury for any part of the 30 days and the employee is still
employed at that job at the end of the period.
(b) Periodic economic recovery compensation paid to the
employee shall not be adjusted pursuant to section 176.645.
Sec. 11. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3r, is amended 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) If the deceased employee leaves a dependent child, as
defined by section 176.111, and no dependent spouse, the
periodic economic recovery or impairment compensation shall
continue to be paid to the child until the child is no longer
dependent or until the amount to which the employee was entitled
to receive is exhausted, whichever is later.
(d) 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 except as provided in clause (c). 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) (e) If the death results from the injury, the payment
of economic recovery compensation or impairment compensation
shall cease upon the death and in lieu thereof death benefits
are payable pursuant to section 176.111.
Sec. 12. Minnesota Statutes 1983 Supplement, section
176.101, subdivision 3t, is amended 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) Where an employee who has suffered a personal injury
for which temporary total compensation is payable but which
produces no permanent partial disability and the employee is
unable to return to his former employment for medical reasons
attributable to the injury, the employee 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.
This paragraph shall not be used to determine monitoring period
compensation under subdivision 3i and shall not be a minimum for
determining the amount of compensation when an employee has
suffered a permanent partial disability.
Sec. 13. Minnesota Statutes 1983 Supplement, section
176.102, subdivision 3a, is amended 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 at least one labor members, two member, at least one
employer or insurer members member, and at least one member
representing medicine, chiropractic, or rehabilitation. The
number of labor members and employer or insurer members on the
five-member panel shall be equal. 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. The panel may adopt rules of
procedure which may be joint rules with the medical services
review board.
Sec. 14. Minnesota Statutes 1983 Supplement, 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 rehabilitation 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
custodial daycare; and, in addition, reasonable costs of board,
and lodging and custodial daycare when rehabilitation requires
residence away from the employee's customary residence;
(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
(f) Any other expense agreed to be paid.
Sec. 15. Minnesota Statutes 1983 Supplement, section
176.103, subdivision 3, is amended to read:
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 physicians 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.
(d) The board may adopt rules of procedure. The rules may
be joint rules with the rehabilitation review panel.
Sec. 16. Minnesota Statutes 1983 Supplement, section
176.103, is amended by adding a subdivision to read:
Subd. 4. [ADVISORY COUNCIL.] The commissioner shall
appoint an advisory council to the medical services review
board. The council shall consist of health professionals other
than physicians or chiropractors who are involved in the
clinical care of injured workers receiving compensation under
this chapter, including but not limited to physical therapists,
nurses, qualified rehabilitation consultants, psychologists,
dentists, and vocational rehabilitation consultants. The terms,
compensation, and removal of members, and the expiration date of
the council is governed by section 15.059.
Sec. 17. Minnesota Statutes 1983 Supplement, section
176.104, subdivision 1, is amended to read:
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 if appropriate.
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 monitored
by the commissioner.
Sec. 18. Minnesota Statutes 1983 Supplement, section
176.104, subdivision 2, is amended to read:
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. 19. [176.1041] [CERTIFICATION FOR FEDERAL TAX
CREDIT.]
Subdivision 1. [CERTIFICATION PROGRAM.] The division of
vocational rehabilitation shall establish a program authorizing
qualified rehabilitation consultants and approved vendors to
refer an employee to the division for the sole purpose of
federal targeted jobs tax credit eligibility determination. The
division shall set forth the specific requirements, procedures
and eligibility criteria for purposes of this section. The
division shall not be required to certify an injured employee
who does not meet the eligibility requirements set forth in the
federal Rehabilitation Act of 1973, as amended.
Subd. 2. [FEE.] The division is authorized to collect a
fee from the qualified rehabilitation consultant or approved
vendor in the amount necessary to determine eligibility and to
certify an employee for this program.
Sec. 20. Minnesota Statutes 1983 Supplement, section
176.129, subdivision 3, is amended to read:
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 be adjusted as provided under subdivision 4a 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.
Sec. 21. Minnesota Statutes 1983 Supplement, section
176.129, subdivision 4, is amended to read:
Subd. 4. [TIME OF INJURY.] Subdivision 3 applies to all
workers' compensation payments, exclusive of medical costs, paid
under sections section 176.101, 176.102, or 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.
Sec. 22. Minnesota Statutes 1983 Supplement, section
176.129, is amended by adding a subdivision to read:
Subd. 4a. [CONTRIBUTION RATE ADJUSTMENT.] In determining
the rate of adjustment as provided by subdivision 3, the
commissioner shall determine the revenues received less claims
received for the preceding 12 months ending June 30, 1984, and
each June 30 thereafter.
If the result is: the range of adjustment is:
over $15,000,000 -10% to 0%
less than $15,000,000 but
more than $10,000,000 -7% to +3%
less than $10,000,000 but
more than $5,000,000 -5% to +5%
less than $5,000,000
but more than $0 -3% to +7%
$0 but less than a
$5,000,000 deficit 0% to +10%
more than a $5,000,000
deficit +5% to +12%
The adjustment under this subdivision shall be used for
assessments for calendar year 1984 and each year thereafter.
An amount assessed pursuant to this section is payable to
the commissioner within 45 days of mailing notice of the amount
due unless the commissioner orders otherwise.
Sec. 23. Minnesota Statutes 1983 Supplement, section
176.135, subdivision 1, is amended to read:
Subdivision 1. [MEDICAL, CHIROPRACTIC, PODIATRIC,
SURGICAL, HOSPITAL.] The employer shall furnish 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. 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 the employer's inability or refusal
seasonably to do so the employer 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 the commissioner or
with respect to this subdivision may be reviewed by the medical
services review board pursuant to section 176.103. Orders of
the 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 pursuant to
section 176.103. Orders of the court of appeals may be reviewed
by writ of certiorari to the supreme court.
Sec. 24. Minnesota Statutes 1982, section 176.135, is
amended by adding a subdivision to read:
Subd. 5. [OCCUPATIONAL DISEASE MEDICAL ELIGIBILITY.]
Notwithstanding section 176.66, an employee who has contracted
an occupational disease is eligible to receive compensation
under this section even if the employee is not disabled from
earning full wages at the work at which the employee was last
employed.
Sec. 25. Minnesota Statutes 1983 Supplement, section
176.136, is amended to read:
176.136 [MEDICAL FEE REVIEW.]
Subdivision 1. [SCHEDULE.] The commissioner 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 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 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.
Subd. 2. [EXCESSIVE FEES.] If the commissioner, medical
services review board, the workers' compensation court of
appeals or a district court payer 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 unless the commissioner, medical services review board,
or workers' compensation court of appeals determines otherwise.
Subd. 3. [REPORT.] The commissioner 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 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.
Subd. 4. [TEMPORARY RULES.] The commissioner 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 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. 26. Minnesota Statutes 1983 Supplement, section
176.138, is amended to read:
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. This section applies only to written medical data
which exists at the time the request is made.
Sec. 27. Minnesota Statutes 1983 Supplement, section
176.183, subdivision 1, is amended to read:
Subdivision 1. When any employee sustains an injury
arising out of and in the course of 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 the employee's dependents shall
nevertheless receive benefits as provided for in this chapter
from the special compensation fund, and the commissioner has a
cause of action against 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. As used in
this subdivision, "employer" includes officers of corporations
who have legal control, either individually or jointly with
another or others, of the payment of wages. An action to
recover the moneys shall be instituted unless the 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. 28. Minnesota Statutes 1983 Supplement, section
176.221, subdivision 1, is amended to read:
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 shall commence. Within 14 days of notice to or
knowledge by an employer of a new period of temporary total
disability which is caused by an old injury compensable under
this chapter, the payment of temporary total compensation shall
commence; provided that the employer or insurer may file for an
extension with the commissioner within this 14-day period, in
which case the compensation need not commence within the 14-day
period but shall commence no later than 30 days from the date of
the notice to or knowledge by the employer of the new period of
disability. Commencement of payment by an employer or insurer
does not waive any rights to any defense the employer may have
has 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. Liability for compensation under this chapter may be
denied by the employer or insurer by giving the employee written
notice of the denial of liability. If liability is denied for
an injury which is required to be reported to the commissioner
under section 176.231, subdivision 1, the denial of liability
must be filed with the commissioner within 14 days after notice
to or knowledge by the employer of an injury which is alleged to
be compensable under this chapter. 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 terminated upon
the filing of a notice of denial of liability within 30 days of
notice or knowledge. After the 30-day period, payment may be
terminated only by the filing of a notice as provided under
section 176.242. Upon the 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.
Sec. 29. Minnesota Statutes 1983 Supplement, section
176.221, subdivision 3, is amended to read:
Subd. 3. [PAYMENTS TO SPECIAL COMPENSATION FUND PENALTY.]
Where an If the employer or insurer fails to does not begin
payment of compensation pursuant to subdivision 1, or to file a
denial of liability within the 14-day period referred to in time
limit prescribed under subdivision 1 or 8, it shall pay the
commissioner may assess a penalty, payable to the special
compensation fund an amount equal to the total, of up to 100
percent of the amount of compensation to which the employee is
entitled because of the injury to receive up to the date
compensation payment is made to the employee or the compensation
to which the employee is entitled to receive up to the date the
penalty is imposed, in addition to any other penalty otherwise
provided by statute. This penalty may also be imposed on an
employer or insurer who violates section 176.242 or 176.243
including, but not limited to, violating the commissioner's
decision not to discontinue compensation.
Sec. 30. Minnesota Statutes 1983 Supplement, section
176.221, is amended by adding a subdivision to read:
Subd. 3a. [PENALTY.] In lieu of any other penalty under
this section, the commissioner may assess a penalty of up to
$1,000 for each instance in which an employer or insurer does
not pay benefits or file a notice of denial of liability within
the time limits prescribed under this section.
Sec. 31. Minnesota Statutes 1982, section 176.231,
subdivision 1, is amended to read:
Subdivision 1. [TIME LIMITATION.] Where death or serious
injury occurs to an employee during the course of employment,
the employer shall report the injury or death to the
commissioner of labor and industry and insurer within 48 hours
after its occurrence. Where any other injury occurs which
wholly or partly incapacitates the employee from performing
labor or service for more than three calendar days or longer,
the employer shall report the injury to the commissioner of
labor and industry and insurer on a form prescribed by the
commissioner within 15 ten days from its occurrence. An insurer
and self-insured employer shall report the injury to the
commissioner no later than 14 days from its occurrence. Where
an injury has once been reported but subsequently death ensues,
the employer shall report the death to the commissioner of labor
and industry and insurer within 48 hours after he the employer
receives notice of this fact.
Sec. 32. Minnesota Statutes 1983 Supplement, section
176.231, subdivision 9, is amended to read:
Subd. 9. [USES WHICH MAY BE MADE OF REPORTS.] Reports
filed with the commissioner under this section may be used in
hearings held under this chapter, and for the purpose of state
investigations and for statistics. These reports are available
to the department of revenue for use in enforcing Minnesota
income tax and property tax refund laws, and the information
shall be protected as provided in section 290.61 or 290A.17.
The division or office of administrative hearings or
workers' compensation court of appeals may permit an attorney at
law who represents an the examination of its file by the
employer, insurer, or an employee, or a dependent to examine its
file in a compensation case if the attorney of a deceased
employee or any person who furnishes written authorization to do
so from the attorney's client employer, insurer, employee, or
dependent of a deceased employee. 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. 33. Minnesota Statutes 1982, section 176.241,
subdivision 1, is amended to read:
Subdivision 1. [NECESSITY FOR NOTICE AND SHOWING;
CONTENTS.] Subject to sections 176.242 and 176.243, where an
employee claims that the right to compensation continues, the
employer may not discontinue payment of compensation until he
the employer provides the employee with notice in writing of his
intention to do so, on a form prescribed by the commissioner,
together with a statement of facts clearly indicating the
reasons for the discontinuance. A copy of the notice shall be
provided to the division by the employer.
The notice to the employee and the copy to the division
shall state the date of intended discontinuance and the reason
for the action. The notice to the employee and the copy to the
division shall be accompanied by a statement of facts in support
of the discontinuance of compensation payments and whatever
medical reports are in the possession of the employer bearing on
the physical condition of the employee at the time of the
proposed discontinuance.
Sec. 34. Minnesota Statutes 1983 Supplement, section
176.241, subdivision 2, is amended to read:
Subd. 2. [CONTINUANCE OF EMPLOYER'S LIABILITY;
SUSPENSION.] Except 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, except as
provided in the following subdivisions and in sections 176.242
and 176.243.
Sec. 35. Minnesota Statutes 1982, section 176.241,
subdivision 3, is amended to read:
Subd. 3. [COPY OF NOTICE TO EMPLOYEE, INVESTIGATION,
HEARING.] When the employer has reason to believe compensation
may be terminated within the requirements of this chapter,
notice shall be given to the employee informing the employee of
his the employee's right to object to the discontinuance
pursuant to sections 176.242 and 176.243 and providing
instructions as to how to contact the employer or, insurer, and
commissioner regarding the discontinuance and the procedures
related to initiation of a claim. The commissioner shall make
an investigation to determine whether the right to compensation
has terminated. If it appears from the investigation that the
right to compensation may not have terminated, the commissioner
shall refer the matter to the chief hearing examiner in order
that a hearing before a compensation judge may be scheduled, to
determine the right of the employee, or his dependent, to
further compensation.
The hearing shall be held within a reasonable time after
the division has received the notice of discontinuance. The
compensation judge shall give eight days notice of the hearing
to interested parties.
Sec. 36. Minnesota Statutes 1982, section 176.241, is
amended by adding a subdivision to read:
Subd. 3a. [OBJECTION TO DISCONTINUANCE.] If the employee is
aggrieved by the commissioner's decision under section 176.242
or 176.243 or the employee has not timely proceeded under either
of those sections, or the discontinuance is not governed by
those sections, the employee may file an objection to
discontinuance with the commissioner. The commissioner shall
refer the matter to the chief hearing examiner in order that a
hearing before a compensation judge may be scheduled to
determine the right of the employee, or the employee's
dependent, to further compensation.
The hearing shall be a de novo hearing and shall be held
within a reasonable time after the chief hearing examiner has
received the notice of the objection to discontinuance.
Sec. 37. Minnesota Statutes 1982, section 176.241, is
amended by adding a subdivision to read:
Subd. 3b. [PETITION TO DISCONTINUE.] Pursuant to section
176.242, subdivision 5, an employer or insurer may file a
petition to discontinue benefits with the commissioner. The
commissioner shall refer the matter to the chief hearing
examiner in order that a hearing on the petition be held before
a compensation judge. This hearing shall be a de novo hearing.
The employer or insurer shall continue payment of compensation
until the filing of the decision of the compensation judge and
thereafter as the compensation judge, court of appeals, or
supreme court directs.
Sec. 38. Minnesota Statutes 1983 Supplement, section
176.242, subdivision 1, is amended to read:
Subdivision 1. [NOTICE OF DISCONTINUANCE; GROUNDS.] If an
employer or insurer files a notice of intention to discontinue
weekly payments of temporary total, temporary partial, or
permanent total disability benefits, the employer or insurer
shall serve a copy upon the commissioner and the employee
including detailed reasons for the intended discontinuance.
Sec. 39. Minnesota Statutes 1983 Supplement, section
176.242, subdivision 2, is amended to read:
Subd. 2. [CONFERENCE, REQUEST.] (a) The employee has ten
calendar days from the date the notice was served filed with the
commissioner 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.
If a notice of intent to discontinue has been 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. If no notice of intent to
discontinue has been filed and the employer or insurer has
requested a conference, the commissioner shall schedule an
administrative conference to be held within 30 calendar days
after the commissioner receives the employer's or insurer's
request for a 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, or insurer 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 unless the parties agree to a
longer continuance. 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. If the employer or insurer is
granted a continuance, compensation shall continue to be paid
during the continuance. There is no limit to the number of
continuances the commissioner may grant provided that the
payment of compensation is subject to this clause during the
continuance.
(d) The purpose of an administrative conference is to
determine whether reasonable grounds exist for a discontinuance.
Sec. 40. Minnesota Statutes 1983 Supplement, section
176.242, subdivision 6, is amended to read:
Subd. 6. [EFFECT OF DECISION, APPEAL REVIEW, TOLLING.] (a)
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 pursuant to section
176.241.
(b) If a party seeks a review of the commissioner's
determination involving issues of maximum medical improvement or
whether a job offer meets the criteria under section 176.101,
subdivisions 3(e), 3(f), or 3(p), the 90-day period referred to
in those subdivisions are tolled and commence on the date of
filing of a final determination on the issue. For purposes of
this subdivision, a "final determination" means a decision from
which no appeal has been or may be taken.
Sec. 41. Minnesota Statutes 1983 Supplement, section
176.242, subdivision 8, is amended to read:
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. If the commissioner has denied a
requested discontinuance and a compensation judge later rules
that the discontinuance was proper, payments made under the
commissioner's order as provided under subdivision 4 shall be
treated as an overpayment which the employer or insurer may
recover from the employee subject to the provisions of section
176.179.
Sec. 42. Minnesota Statutes 1983 Supplement, section
176.243, subdivision 3, is amended to read:
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 or regarding the payment of temporary partial
disability benefits, 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.
Sec. 43. Minnesota Statutes 1982, section 176.271,
subdivision 2, is amended to read:
Subd. 2. Before a proceeding is initiated pursuant to
subdivision 1 the party contemplating initiation of a proceeding
shall notify the party against whom the proceeding will be
directed including an employer who has an interest in the matter
and shall state the relief that will be sought in the
proceeding. If the party to whom the notice is directed does
not respond to the satisfaction of the party supplying the
notice within 15 days of the receipt of the notice a proceeding
may be initiated pursuant to subdivision 1. This notification
is not required in cases where compliance with this subdivision
would result in the claim being barred by section 176.151 or
other sections or a proceeding under section 176.103, 176.242 or
176.243 or other proceeding for which the commissioner
determines this notice is not necessary.
Sec. 44. Minnesota Statutes 1982, section 176.351, is
amended by adding a subdivision to read:
Subd. 2a. [SUBPOENAS NOT PERMITTED.] A member of the
rehabilitation review panel or medical services board or an
employee of the department who has conducted an administrative
conference or hearing under section 176.102, 176.103, 176.135,
176.136, 176.242, or 176.243, shall not be subpoenaed to testify
regarding the conference, hearing, or concerning a mediation
session. A member of the rehabilitation review panel, medical
services board, or an employee of the department may be required
to answer written interrogatories limited to the following
questions:
(a) Were all statutory and administrative procedural rules
adhered to in reaching the decision?
(b) If the answer to question (a) is no, what deviations
took place?
(c) Did the person making the decision consider all the
information presented to him or her prior to rendering a
decision?
(d) Did the person making the decision rely on information
outside of the information presented at the conference or
hearing in making the decision?
(e) If the answer to question (d) is yes, what other
information was relied upon in making the decision?
In addition, for a hearing with a compensation judge and
with the consent of the compensation judge, an employee of the
department who conducted an administrative conference, hearing,
or mediation session, may be requested to answer written
interrogatories relating to statements made by a party at the
prior proceeding. These interrogatories shall be limited to
affirming or denying that specific statements were made by a
party.
Sec. 45. Minnesota Statutes 1983 Supplement, section
176.361, is amended to read:
176.361 [INTERVENTION.]
Subdivision 1. [RIGHT TO INTERVENE.] A person who has an
interest in any matter before the workers' compensation court of
appeals, or commissioner, or compensation judge such that the
person may either gain or lose by an order or decision may
intervene in the proceeding by filing an application in writing
stating the facts which show the interest. The commissioner is
considered to have an interest and shall be permitted to
intervene at the appellate level when a party relies in its
claim or defense upon any statute or rule administered by the
commissioner, or upon any rule, order, requirement, or agreement
issued or made under the statute or rule.
The commissioner and may adopt rules, not inconsistent with
this section to govern intervention. The workers' compensation
court of appeals shall adopt rules to govern the procedure for
intervention in matters before it.
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. Any
other interested party may intervene using a nonattorney. This
activity shall not be considered to be the unauthorized practice
of law.
Subd. 2. [WRITTEN APPLICATION.] A person desiring to
intervene in a workers' compensation case as a party, including
but not limited to a health care provider who has rendered
services to an employee or an insurer who has paid benefits
under section 176.191, shall submit a timely written application
to intervene to the compensation or settlement judge to whom the
case has been assigned. If the case has not yet been assigned,
the application shall be made to the calendar judge if the case
has been certified to the office, or to the division if the case
has not been certified to the office.
(a) The application must be served on all parties either
personally, by first class mail, or registered mail, return
receipt requested. An application to intervene must be served
and filed within 60 days after a person has received notice that
a petition has been filed as provided in this section. An
untimely motion is subject to denial under subdivision 7.
(b) In any other situation, timeliness will be determined
by the judge in each case based on circumstances at the time of
filing. The application must show how the moving party's legal
rights, duties, or privileges may be determined or affected by
the case; state the grounds and purposes for which intervention
is sought; and indicate the moving party's statutory right to
intervene. The application must be accompanied by the
following, if applicable:
(1) an itemization of disability payments showing the
period during which the payments were or are being made; the
weekly or monthly rate of the payments; and the amount of
reimbursement claimed;
(2) a summary of the medical or treatment payments, or
rehabilitation services provided by the division of vocational
rehabilitation, broken down by creditor, showing the total bill
submitted, the period of treatment or rehabilitation covered by
that bill, the amount of payment on that bill, and to whom the
payment was made;
(3) copies of all medical or treatment bills on which some
payment was made;
(4) copies of the work sheets or other information stating
how the payments on medical or treatment bills were calculated;
(5) a copy of the relevant policy or contract provisions
upon which the claim for reimbursement is based;
(6) a proposed order allowing intervention with sufficient
copies to serve on all parties;
(7) the name and telephone number of the person
representing the intervenor who has authority to reach a
settlement of the issues in dispute;
(8) proof of service or copy of the registered mail receipt;
(9) at the option of the intervenor, a proposed stipulation
which states that all of the payments for which reimbursement is
claimed are related to the injury or condition in dispute in the
case and that, if the petitioner is successful in proving the
compensability of the claim, it is agreed that the sum be
reimbursed to the intervenor; and
(10) if represented by an attorney, the name, address,
telephone number, and Minnesota Supreme Court license number of
the attorney.
Subd. 3. [STIPULATION.] If the person submitting the
application for intervention has included a proposed
stipulation, all parties shall either execute and return the
signed stipulation to the intervenor who must file it with the
division or judge or serve upon the intervenor and all other
parties and file with the division specific and detailed
objections to any payments made by the intervenor which are not
conceded to be correct and related to the injury or condition
the petitioner has asserted is compensable. If a party has not
returned the signed stipulation or filed objections within 30
days of service of the application, the intervenor's right to
reimbursement for the amount sought is deemed established
provided that the petitioner's claim is determined to be
compensable.
Subd. 4. [ATTENDANCE BY INTERVENOR.] Unless a stipulation
has been signed and filed or the intervenor's right to
reimbursement has otherwise been established, the intervenor
shall attend all settlement or pretrial conferences and shall
attend the regular hearing if ordered to do so by the
compensation judge.
Subd. 5. [ORDER.] If an objection to intervention remains
following settlement or pretrial conferences, the calendar judge
shall rule on the intervention and the order is binding on the
compensation judge to whom the case is assigned for hearing.
Subd. 6. [PRESENTATION OF EVIDENCE BY INTERVENOR.] Unless
a stipulation has been signed and filed or the intervenor's
right to reimbursement has otherwise been established, the
intervenor shall present evidence in support of the claim at the
hearing unless otherwise ordered by the compensation judge.
Subd. 7. [EFFECTS OF NONCOMPLIANCE.] Failure to comply
with this section shall not result in a denial of the claim for
reimbursement unless the compensation judge, commissioner, or
settlement judge determines that the noncompliance has
materially prejudiced the interests of the other parties.
Sec. 46. Minnesota Statutes 1983 Supplement, 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 the commissioner and shall provide a
stenographer or an audio magnetic recording device to make the
record of the proceedings.
The commissioner shall furnish a transcript of these
proceedings to any person who requests it and who pays a
reasonable 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. This subdivision
does not apply to any administrative conference or other
proceeding before the commissioner which may be heard de novo in
another proceeding including but not limited to proceedings
under section 176.102, 176.103, 176.242, or 176.243.
Sec. 47. Minnesota Statutes 1983 Supplement, section
176.442, is amended to read:
176.442 [APPEALS FROM DECISIONS OF COMMISSIONER.]
Except for a commissioner's decision which may be heard de
novo in another proceeding including but not limited to a
decision from an administrative conference under section
176.102, 176.103, 176.242, or 176.243, any decision or
determination of the commissioner 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 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. 48. Minnesota Statutes 1983 Supplement, section
176.66, subdivision 10, is amended 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. If this last
employer had coverage for workers' compensation liability from
more than one insurer during the employment, the insurer on the
risk during the last period during which the employee was last
exposed to the hazard of the occupational disease shall pay
benefits as provided under section 176.191, subdivision 1,
whether or not this insurer was on risk during the last
significant exposure. The party making payments under this
section shall be reimbursed by the party who is subsequently
determined to be liable for the occupational disease, including
interest at a rate of 12 percent a year. For purposes of this
section, a self-insured employer shall be considered to be an
insurer and an employer. 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. 49. Minnesota Statutes 1983 Supplement, section
176.66, subdivision 11, is amended 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 notwithstanding the
provisions of section 176.132, after four years have elapsed
since the date of last significant exposure to the hazard of the
occupational disease if that employee's weekly compensation rate
is less than 65 percent of the statewide average weekly wage the
current supplementary benefit rate.
Sec. 50. Minnesota Statutes 1983 Supplement, section
176.83, is amended to read:
176.83 [RULES.]
Subdivision 1. [GENERALLY.] 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: the rules listed in this section.
(a) Subd. 2. [REHABILITATION.] 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) Subd. 3. [CLINICAL CONSEQUENCES.] 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) Subd. 4. [EXCESSIVE CHARGES FOR MEDICAL SERVICES.]
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) Subd. 5. [EXCESSIVE MEDICAL SERVICES.] 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 payer 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, and 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 unless the commissioner, medical services
review board, or workers' compensation court of appeals
determines at a hearing that the level, frequency, or cost was
not excessive in which case the insurer, self-insurer, or group
self-insurer shall make the payment deemed reasonable.
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 subdivision
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 subdivision 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) Subd. 6. [CERTIFICATION OF MEDICAL PROVIDERS.] 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) Subd. 7. [MISCELLANEOUS RULES.] 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) Subd. 8. [CHANGE OF PROVIDER.] 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) Subd. 9. [INTERVENTION.] Rules to govern the procedure
for intervention pursuant to section 176.361;.
(i) Subd. 10. [JOINT RULES.] 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) Subd. 11. [SUITABLE GAINFUL EMPLOYMENT.] 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."
Subd. 12. [COMPENSATION JUDGE PROCEDURES.] The chief
hearing examiner shall adopt rules relating to procedures in
matters pending before a compensation judge in the office of
administrative hearings.
Subd. 13. [CLAIMS ADJUSTER.] 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.
Subd. 14. [REHABILITATION CONSULTANT QUALIFICATIONS.] 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.
Subd. 15. [FORMS.] 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. 51. Minnesota Statutes 1983 Supplement, section
176.85, subdivision 1, is amended to read:
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. The
request must be filed within 30 days of the date that the
penalty assessment is served on the party. Upon receipt of a
timely 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.
Sec. 52. [ADMINISTRATIVE CONFERENCE SCHEDULING.]
Notwithstanding anything to the contrary in section
176.242, subdivision 2, clause (a), an administrative conference
pursuant to section 176.242 shall be scheduled within ten
business days after the commissioner receives timely notice of
the employee's request for a conference. This section applies
to a conference which is requested on or after the effective
date of this section and before November 1, 1984, after which
time the provisions of section 176.242, subdivision 2, clause
(a), apply.
Sec. 53. [STUDY.]
The requirement of Laws 1983, chapter 301, section 32, that
the commissioner shall study the need for establishing criteria
which would determine whether a workers' compensation claim is
handled by the division's attorneys, referred for private
action, or referred for arbitration or mediation and report to
the legislature is removed.
Sec. 54. [APPLICATION OF LAWS 1983, CHAPTER 290, SECTIONS
83, 84, 106, AND 107.]
Laws 1983, chapter 290, section 83 applies to a proceeding
conducted after June 30, 1983, whether or not the injury
occurred prior to that date. Laws 1983, chapter 290, sections
84, 106, and 107 apply to proceedings conducted after September
30, 1983, whether or not the injury occurred prior to that date.
Sec. 55. [REPEALER.]
Minnesota Statutes 1982, sections 79.22, subdivision 2; and
Minnesota Statutes 1983 Supplement, sections 147.02, subdivision
4; 176.129, subdivision 5; are repealed.
Sec. 56. [EFFECTIVE DATE.]
The amendments in sections 1 to 12, 14, 17, 18, and 49 are
not substantive in nature and are clarifications of legislative
intent of Laws 1983, chapter 290, and apply to an injury
occurring after December 31, 1983. The amendments in sections
26, 33 to 38, 41, 42, 46, and 47 are procedural in nature and
are clarifications of Laws 1983, chapter 290, and apply to
proceedings conducted after June 30, 1983, whether or not the
injury occurred prior to that date. Failure to cite a specific
section in this act as nonsubstantive or procedural shall not be
construed by itself to mean that the section is a substantive
change in the law. Section 24 applies to an injury for which a
claim is pending or a claim made after the effective date of
this act regardless of the date of injury. This act is
effective the day following final enactment.
Approved April 23, 1984
Official Publication of the State of Minnesota
Revisor of Statutes