Minnesota Session Laws - 1984, Regular Session

  

                         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