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

  
    Laws of Minnesota 1993 

                        CHAPTER 194-S.F.No. 1413 
           An act relating to workers' compensation; excluding 
          certain wages in determining insurance premiums; 
          modifying provisions relating to charges by certain 
          nursing homes; providing for exemption from certain 
          registration requirements; providing for guardians or 
          conservators in certain cases; amending Minnesota 
          Statutes 1992, sections 79.211, subdivision 1; 79.255, 
          by adding a subdivision; 176.091; 176.111, subdivision 
          5; 176.136, subdivision 1b; and 176.521, subdivisions 
          1 and 2; proposing coding for new law in Minnesota 
          Statutes, chapters 176; and 525.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1992, section 79.211, 
subdivision 1, is amended to read: 
    Subdivision 1.  [CERTAIN WAGES EXCLUDED FOR RATEMAKING.] 
The rating association or an insurer shall not include wages 
paid for a vacation, holiday, or sick leave in the determination 
of a workers' compensation insurance premium. 
    An insurer, including the assigned risk plan, shall not 
include wages paid for work performed in an adjacent state in 
the determination of a workers' compensation premium if the 
employer paid a workers' compensation insurance premium to the 
exclusive state fund of the adjacent state on the wages earned 
in the adjacent state. 
    Sec. 2.  Minnesota Statutes 1992, section 79.255, is 
amended by adding a subdivision to read: 
    Subd. 9.  [EXEMPTION.] A corporation, partnership, sole 
proprietorship, or other business entity that provides personnel 
supply arrangements or agreements for the purpose of temporarily 
supporting or supplementing a client's work force in work 
situations, such as employee absences, temporary skill 
shortages, seasonal workloads, and specific functions and 
projects, may be exempt from the registration requirements of 
this section, provided that the arrangements or agreements do 
not involve the lease-back of the client's employees.  
    To qualify for an exemption, an applicant must obtain a 
certificate of exemption from registration from the 
commissioner.  A certificate of exemption shall be issued upon 
the applicant's filing of a letter with the commissioner stating 
that the applicant meets all of the requirements for obtaining 
an exemption.  If a corporation, partnership, sole 
proprietorship, or other business entity operating under the 
exemption subsequently fails to meet the requirements for the 
exemption, the corporation, partnership, sole proprietorship, or 
other business entity must immediately surrender the exemption 
certificate and register with the commissioner. 
     Sec. 3.  Minnesota Statutes 1992, section 176.091, is 
amended to read: 
    176.091 [MINOR EMPLOYEES.] 
    Except as provided in section 176.092, a minor employee has 
the same power to enter into a contract, make election of 
remedy, make any settlement, and receive compensation as an 
adult employee, subject to the power of the commissioner of the 
department of labor and industry, compensation judge, or 
workers' compensation court of appeals to require the 
appointment of a guardian for the minor employee to make such 
settlement and to receive moneys thereunder or under an award. 
    Sec. 4.  [176.092] [GUARDIAN; CONSERVATOR.] 
    Subdivision 1.  [WHEN REQUIRED.] An injured employee or a 
dependent under section 176.111 who is a minor or an 
incapacitated person as that term is defined in section 525.54, 
subdivision 2 or 3, shall have a guardian or conservator to 
represent the interests of the employee or dependent in 
obtaining compensation according to the provisions of this 
chapter.  This section applies if the employee receives or is 
eligible for permanent total disability benefits, supplementary 
benefits, or permanent partial disability benefits or a 
dependent receives or is eligible for dependency benefits, or if 
the employee or dependent receives or is offered a lump sum that 
exceeds five times the statewide average weekly wage. 
    Subd. 2.  [APPOINTMENT.] If an injured employee or 
dependent under section 176.111 does not have a guardian or 
conservator and the attorney representing the employee or 
dependent knows or has reason to believe the employee or 
dependent is a minor or an incapacitated person, the attorney 
shall, within 30 days, seek a probate court order appointing a 
guardian or conservator.  If the employer, insurer, or special 
compensation fund in a matter involving a claim against the fund 
knows or has reason to believe the employee or dependent is a 
minor or is incapacitated, the employer, insurer, or special 
compensation fund shall notify the attorney representing the 
employee or dependent.  If the employee or dependent has no 
attorney or the attorney fails to seek appointment of a guardian 
or conservator within 30 days of being notified under this 
subdivision, the employer or insurer shall seek the appointment 
in probate court and the special compensation fund shall notify 
the commissioner or a compensation judge for referral of the 
matter under subdivision 3.  In the case of a minor who is not 
represented by an attorney, the commissioner shall refer the 
matter under subdivision 3. 
    Subd. 3.  [REFERRAL.] When, in a proceeding before them, it 
appears to the commissioner, compensation judge, or, in cases 
upon appeal, the workers' compensation court of appeals, that an 
injured employee or a dependent is a minor or an incapacitated 
person without a guardian or conservator, the commissioner, 
compensation judge, or court of appeals shall refer the matter 
to probate court.  The commissioner has no duty to monitor files 
at the department but must review a file for referral upon 
receiving a complaint that an injured employee or dependent is a 
minor or an incapacitated person without a guardian or 
conservator. 
    Subd. 4.  [GUARDIAN, CONSERVATOR; POWERS, DUTIES.] A 
guardian or conservator of an injured employee or dependent 
shall have the powers and duties granted by the probate court 
including, but not limited to: 
    (1) representing the interests of the employee or dependent 
in obtaining compensation according to the provisions of this 
chapter; 
    (2) receiving monetary compensation benefits, including the 
amount of any award, settlement, or judgment; and 
    (3) acting as a fiduciary in distributing, managing, and 
investing monetary workers' compensation benefits. 
    Sec. 5.  Minnesota Statutes 1992, section 176.111, 
subdivision 5, is amended to read: 
    Subd. 5.  [PAYMENTS, TO WHOM MADE.] In death cases 
compensation payable to dependents is computed on the following 
basis and shall be paid to the persons entitled thereto or to a 
guardian or such other person as the commissioner of the 
department of labor and industry, compensation judge, or 
workers' compensation court of appeals in cases upon appeal 
directs for the use and benefit of the person entitled thereto 
conservator as required under section 176.092. 
    Sec. 6.  Minnesota Statutes 1992, section 176.136, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [LIMITATION OF LIABILITY.] (a) The liability of 
the employer for treatment, articles, and supplies provided to 
an employee while an inpatient or outpatient at a small hospital 
shall be the hospital's usual and customary charge, unless the 
charge is determined by the commissioner or a compensation judge 
to be unreasonably excessive.  A "small hospital," for purposes 
of this paragraph, is a hospital which has 100 or fewer licensed 
beds. 
    (b) The liability of the employer for the treatment, 
articles, and supplies that are not limited by subdivision 1a or 
1c or paragraph (a) shall be limited to 85 percent of the 
provider's usual and customary charge, or 85 percent of the 
prevailing charges for similar treatment, articles, and supplies 
furnished to an injured person when paid for by the injured 
person, whichever is lower.  On this basis, the commissioner or 
compensation judge may determine the reasonable value of all 
treatment, services, and supplies, and the liability of the 
employer is limited to that amount. 
     (c) The limitation of liability for charges provided by 
paragraph (b) does not apply to a nursing home that participates 
in the medical assistance program and whose rates are 
established by the commissioner of human services. 
     Sec. 7.  Minnesota Statutes 1992, section 176.521, 
subdivision 1, is amended to read: 
    Subdivision 1.  [VALIDITY.] An agreement between an 
employee or an employee's dependent and the employer or insurer 
to settle any claim, which is not upon appeal before the court 
of appeals, for compensation under this chapter is valid where 
it has been executed in writing and signed by the parties and 
intervenors in the matter, and, where one or more of the parties 
is not represented by an attorney, the commissioner or a 
compensation judge has approved the settlement and made an award 
thereon.  If the matter is upon appeal before the court of 
appeals or district court, the court of appeals or district 
court is the approving body.  An agreement to settle any claim 
is not valid if a guardian or conservator is required under 
section 176.092 and an employee or dependent has no guardian or 
conservator. 
    Sec. 8.  Minnesota Statutes 1992, section 176.521, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPROVAL.] Settlements shall be approved only if 
the terms conform with this chapter. 
    The commissioner, a compensation judge, the court of 
appeals, and the district court shall exercise discretion in 
approving or disapproving a proposed settlement. 
    The parties to the agreement of settlement have the burden 
of proving that the settlement is reasonable, fair, and in 
conformity with this chapter.  A settlement agreement where both 
the employee or the employee's dependent and the employer or 
insurer are represented by an attorney shall be conclusively 
presumed to be reasonable, fair, and in conformity with this 
chapter except when the settlement purports to be a full, final, 
and complete settlement of an employee's right to medical 
compensation under this chapter or rehabilitation under section 
176.102.  A settlement which purports to do so must be approved 
by the commissioner, a compensation judge, or court of appeals. 
    The conclusive presumption in this subdivision is not 
available in cases involving an employee or dependent with a 
guardian or conservator. 
    The conclusive presumption in this subdivision applies to a 
settlement agreement entered into on or after January 15, 1982, 
whether the injury to which the settlement applies occurred 
prior to or on or after January 15, 1982.  
    Sec. 9.  [525.6199] [GUARDIANSHIP, CONSERVATORSHIP; 
WORKERS' COMPENSATION PROCEEDINGS.] 
    Subdivision 1.  [REFERRAL.] When a matter is referred under 
section 176.092, subdivision 3, the court shall determine 
whether the employee or dependent is a minor or an incapacitated 
person, shall appoint a guardian or conservator if the employee 
or dependent is a minor or an incapacitated person, and shall 
return the matter to the source of referral. 
    Subd. 2.  [COURT OVERSIGHT.] The court shall oversee the 
use of monetary benefits paid to a guardian or conservator as 
provided in this chapter or under rule 145 of the general rules 
of practice for the district courts.  There is a rebuttable 
presumption that a settlement or award approved by the 
commissioner of the department of labor and industry or a 
compensation judge is reasonable and fair to the employee or 
dependent. 
    Subd. 3.  [COSTS.] Subject to the approval of the court, 
the insurer or self-insured employer shall pay the costs and a 
reasonable attorney fee of the employee or dependent associated 
with the appointment of a guardian or conservator required under 
section 176.092. 
     Sec. 10.  [EFFECTIVE DATE.] 
    Section 1 is effective August 1, 1993, and applies to all 
workers' compensation insurance policies issued or renewed on or 
after that date.  Section 2 is effective the day following final 
enactment.  Sections 3 to 5 and 7 to 9 are effective August 1, 
1993, and apply to all monetary benefits paid on or after that 
date, without regard to the date of injury. 
    Presented to the governor May 12, 1993 
    Signed by the governor May 14, 1993, 3:41 p.m.