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

CHAPTER 75--S.F.No. 1476
An act
relating to labor and employment; modifying workers' compensation
provisions;amending Minnesota Statutes 2008, sections 176.101, subdivision
2a; 176.102, subdivisions 3, 3a, by adding a subdivision; 176.103, subdivision
3; 176.135, subdivisions 6, 7, by adding a subdivision; 176.155, subdivision 1;
176.179; 176.181, subdivision 8; 176.183, subdivision 2; 176.186; 176.231,
subdivision 1; 176.341, subdivision 1; 176.351, subdivision 2a; repealing
Minnesota Statutes 2008, section 176.1021.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2008, section 176.101, subdivision 2a, is amended to
read:
    Subd. 2a. Permanent partial disability. (a) Compensation for permanent partial
disability is as provided in this subdivision. Permanent partial disability must be rated as a
percentage of the whole body in accordance with rules adopted by the commissioner under
section 176.105. The percentage determined pursuant to the rules must be multiplied by
the corresponding amount in the following table:

Impairment rating
Amount

(percent)

0-5less than 5.5
$
75,000

6-105.5 to less than 10.5
80,000

11-1510.5 to less than 15.5
85,000

16-2015.5 to less than 20.5
90,000

21-2520.5 to less than 25.5
95,000

26-3025.5 to less than 30.5
100,000

31-3530.5 to less than 35.5
110,000

36-4035.5 to less than 40.5
120,000

41-4540.5 to less than 45.5
130,000

46-5045.5 to less than 50.5
140,000

51-5550.5 to less than 55.5
165,000

56-6055.5 to less than 60.5
190,000

61-6560.5 to less than 65.5
215,000

66-7065.5 to less than 70.5
240,000

71-7570.5 to less than 75.5
265,000

76-8075.5 to less than 80.5
315,000

81-8580.5 to less than 85.5
365,000

86-9085.5 to less than 90.5
415,000

91-9590.5 to less than 95.5
465,000

96-10095.5 up to and including 100
515,000
An employee may not receive compensation for more than a 100 percent disability of the
whole body, even if the employee sustains disability to two or more body parts.
(b) Permanent partial disability is payable upon cessation of temporary total
disability under subdivision 1. If the employee requests payment in a lump sum, then the
compensation must be paid within 30 days. This lump-sum payment may be discounted to
the present value calculated up to a maximum five percent basis. If the employee does not
choose to receive the compensation in a lump sum, then the compensation is payable in
installments at the same intervals and in the same amount as the employee's temporary
total disability rate on the date of injury. Permanent partial disability is not payable while
temporary total compensation is being paid.
EFFECTIVE DATE.This section is effective the day following final enactment
and applies retroactively to dates of injury on or after October 1, 2000.

    Sec. 2. Minnesota Statutes 2008, section 176.102, subdivision 3, is amended to read:
    Subd. 3. Review panel. There is created a Rehabilitation Review Panel composed
of the commissioner or a designee, who shall serve as an ex officio member and two
members each from employers, insurers, and rehabilitation, and medicine two licensed or
registered health care providers, one member representing chiropractors chiropractor, and
four members representing labor. The members shall be appointed by the commissioner
and shall serve four-year terms which may be renewed. Terms, compensation, and removal
for members shall be governed by section 15.0575. Notwithstanding section 15.059, this
panel does not expire unless the panel no longer fulfills the purpose for which the panel
was established, the panel has not met in the last 18 months, or the panel does not comply
with the registration requirements of section 15.0599, subdivision 3. The panel shall select
a chair. The panel shall review and make a determination with respect to appeals from
orders of the commissioner regarding certification approval of qualified rehabilitation
consultants and vendors. The hearings are de novo and initiated by the panel under the
contested case procedures of chapter 14, and are appealable to the Workers' Compensation
Court of Appeals in the manner provided by section 176.421.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. Minnesota Statutes 2008, section 176.102, subdivision 3a, is amended to read:
    Subd. 3a. Disciplinary actions. The panel has authority to discipline qualified
rehabilitation consultants and vendors and may impose a penalty of up to $3,000 per
violation, payable to the commissioner for deposit in the assigned risk safety account, and
may suspend or revoke certification. Complaints against registered qualified rehabilitation
consultants and vendors shall be made to the commissioner who shall investigate all
complaints. If the investigation indicates a violation of this chapter or rules adopted
under this chapter, the commissioner may initiate a contested case proceeding under the
provisions of chapter 14. In these cases, the rehabilitation review panel shall make the
final decision following receipt of the report of an administrative law judge. The decision
of the panel is appealable to the Workers' Compensation Court of Appeals in the manner
provided by section 176.421. The panel shall continuously study rehabilitation services
and delivery, develop and recommend rehabilitation rules to the commissioner, and assist
the commissioner in accomplishing public education.
The commissioner may appoint alternates for one-year terms to serve as a member
when a member is unavailable. The number of alternates shall not exceed one labor
member, one employer or insurer member, and one member representing medicine a
licensed or registered health care provider, chiropractic, or rehabilitation.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 4. Minnesota Statutes 2008, section 176.102, is amended by adding a subdivision
to read:
    Subd. 3c. Rehabilitation Review Panel meetings. (a) Except where the
Rehabilitation Review Panel is making a decision in a contested case matter under
subdivisions 3, 3a, or 3b, the panel may conduct a meeting of its members by telephone or
other electronic means so long as the following conditions are met:
(1) all members of the panel participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
(2) members of the public present at the regular meeting location of the panel can
hear clearly all discussion and testimony and all votes of members of the panel and, if
needed, receive those services required by sections 15.44 and 15.441;
(3) at least one member of the panel is physically present at the regular meeting
location; and
(4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
(b) Each member of the panel participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining a
quorum and participating in all proceedings.
(c) If telephone or other electronic means are used to conduct a regular, special, or
emergency meeting, the panel, to the extent practical, shall allow a person to monitor the
meeting electronically from a remote location. The panel or the Department of Labor
and Industry may require the person making such a connection to pay for documented
costs that the panel or the Department of Labor and Industry incurs as a result of the
additional connection.
(d) If telephone or other electronic means are used to conduct a regular, special, or
emergency meeting, the panel shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and that a
person may monitor the meeting electronically from a remote location. The timing and
method of providing notice is governed by section 13D.04.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 5. Minnesota Statutes 2008, 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 hospitals, one physical therapist, one registered nurse,
one occupational therapist, and six 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, and 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 may appoint from its members whatever
subcommittees it deems appropriate. Notwithstanding section 15.059, this board does not
expire unless the board no longer fulfills the purpose for which the board was established,
the board has not met in the last 18 months, or the board does not comply with the
registration requirements of section 15.0599, subdivision 3.
The commissioner may appoint alternates for one-year terms to serve as a member when a
member is unavailable. The number of alternates shall not exceed one chiropractor, one
physical therapist, one registered nurse, one hospital administrator representative, three
physicians, one employee representative, one employer or insurer representative, and one
representative of the general public occupational therapist.
(b) The board shall review clinical results for adequacy and recommend to the
commissioner scales for disabilities and apportionment.
(c) The board shall review and recommend to the commissioner rates for individual
clinical procedures and aggregate costs. The board shall assist the commissioner in
accomplishing public education.
(d) 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.
(e) The board shall advise the commissioner on the adoption of rules regarding all
aspects of medical care and services provided to injured employees.
(f) The Medical Services Review Board may upon petition from the commissioner
and after hearing, issue a warning, a penalty of $200 per violation, a restriction on
providing treatment that requires preauthorization by the board, commissioner, or
compensation judge for a plan of treatment, disqualify, or suspend a provider from
receiving payment for services rendered under this chapter if a provider has violated any
part of this chapter or rule adopted under this chapter, or where there has been a pattern of,
or an egregious case of, inappropriate, unnecessary, or excessive treatment by a provider.
Any penalties collected under this subdivision shall be payable to the commissioner for
deposit in the assigned risk safety account. The hearings are initiated by the commissioner
under the contested case procedures of chapter 14. The board shall make the final decision
following receipt of the recommendation of the administrative law judge. The board's
decision is appealable to the Workers' Compensation Court of Appeals in the manner
provided by section 176.421.
(g) The board may adopt rules of procedure. The rules may be joint rules with
the rehabilitation review panel.
(h) Except where the board is making a decision in a contested case matter under
paragraph (b), the board may conduct a meeting of its members by telephone or other
electronic means so long as the following conditions are met:
(1) all members of the board participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
(2) members of the public present at the regular meeting location of the board can
hear clearly all discussion and testimony and all votes of members of the board and, if
needed, receive those services required by sections 15.44 and 15.441;
(3) at least one member of the board is physically present at the regular meeting
location; and
(4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
(i) Each member of the board participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining a
quorum and participating in all proceedings.
(j) If telephone or other electronic means are used to conduct a regular, special, or
emergency meeting, the board, to the extent practical, shall allow a person to monitor the
meeting electronically from a remote location. The board or the Department of Labor
and Industry may require the person making such a connection to pay for documented
costs that the board or the Department of Labor and Industry incurs as a result of the
additional connection.
(k) If telephone or other electronic means are used to conduct a regular, special, or
emergency meeting, the board shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and that a
person may monitor the meeting electronically from a remote location. The timing and
method of providing notice is governed by section 13D.04.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 6. Minnesota Statutes 2008, section 176.135, subdivision 6, is amended to read:
    Subd. 6. Commencement of payment. As soon as reasonably possible, and no
later than 30 calendar days after receiving the bill, the employer or insurer shall pay the
charge or any portion of the charge which is not denied, or deny all or a part of the charge
with written notification to the employee and the provider explaining the basis for denial,
except that the employer or insurer is not required to notify the employee of payment of
charges that have been reduced in accordance with section 176.136, subdivisions 1, 1a, or
1b. All or part of a charge must be denied if any of the following conditions exists:
(1) the injury or condition is not compensable under this chapter;
(2) the charge or service is excessive under this section or section 176.136;
(3) the charges are not submitted on the prescribed billing form; or
(4) additional medical records or reports are required under subdivision 7 to
substantiate the nature of the charge and its relationship to the work injury.
If payment is denied under clause (3) or (4), the employer or insurer shall reconsider
the charges in accordance with this subdivision within 30 calendar days after receiving
additional medical data, a prescribed billing form, or documentation of enrollment or
certification as a provider.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 7. Minnesota Statutes 2008, section 176.135, subdivision 7, is amended to read:
    Subd. 7. Medical bills and records. Health care providers shall submit to the
insurer an itemized statement of charges in the standard electronic transaction format when
required by section 62J.536 or, if there is no prescribed standard electronic transaction
format, on a billing form prescribed by the commissioner. A paper billing form is not
required if the health care provider and insurer agree to electronic submission under
section 62J.535. Health care providers shall also submit copies of medical records or
reports that substantiate the nature of the charge and its relationship to the work injury.
Health care providers may charge for copies of any records or reports that are in existence
and directly relate to the items for which payment is sought under this chapter. The
commissioner shall adopt a schedule of reasonable charges by rule.
A health care provider shall not collect, attempt to collect, refer a bill for collection,
or commence an action for collection against the employee, employer, or any other party
until the information required by this section has been furnished.
A United States government facility rendering health care services to veterans is not
subject to the uniform billing form requirements of this subdivision.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 8. Minnesota Statutes 2008, section 176.135, is amended by adding a subdivision
to read:
    Subd. 8. Data. Each self-insured employer and insurer shall retain or arrange for
the retention of (a) all billing data electronically transmitted by health care providers for
payment for the treatment of workers' compensation; and (b) the employer of insurer's
electronically transmitted payment remittance advice. The self-insured employer or
insurer shall ensure that the data in clauses (a) and (b) shall be retained for seven years
in the standard electronic transaction format that is required by rules adopted by the
commissioner of the Department of Health under section 62J.536. The data shall be
provided in the standard electronic transaction format to the commissioner of labor and
industry within 120 days of the commissioner of labor and industry's request, and shall
be used to analyze the costs and outcomes of treatment in the workers' compensation
system. The data collected by the commissioner of labor and industry under this
section is confidential data on individuals and protected nonpublic data, except that the
commissioner may publish aggregate statistics and other summary data on the costs and
outcomes of treatment in the workers' compensation system.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 9. Minnesota Statutes 2008, section 176.155, subdivision 1, is amended to read:
    Subdivision 1. Employer's physician. The injured employee must submit to
examination by the employer's physician, if requested by the employer, and at reasonable
times thereafter upon the employer's request. Examinations shall not be conducted in hotel
or motel facilities. The examination must be scheduled at a location within 150 miles of
the employee's residence unless the employer can show cause to the department to order an
examination at a location further from the employee's residence. The employee is entitled
upon request to have a personal physician present at any such examination. Each party
shall defray the cost of that party's physician. Any report or written statement made by the
employer's physician as a result of an examination of the employee, regardless of whether
the examination preceded the injury or was made subsequent to the injury, shall be made
available, upon request and without charge, to the injured employee or representative
of the employee. The employer shall pay reasonable travel expenses incurred by the
employee in attending the examination including mileage, parking, and, if necessary,
lodging and meals. The employer shall also pay the employee for any lost wages resulting
from attendance at the examination. A self-insured employer or insurer who is served with
a claim petition pursuant to section 176.271, subdivision 1, or 176.291, shall schedule any
necessary examinations of the employee, if an examination by the employer's physician or
health care provider is necessary to evaluate benefits claimed. The examination shall be
completed and the report of the examination shall be served on the employee and filed
with the commissioner within 120 days of service of the claim petition.
No evidence relating to the examination or report shall be received or considered
by the commissioner, a compensation judge, or the court of appeals in determining any
issues unless the report has been served and filed as required by this section, unless a
written extension has been granted by the commissioner or compensation judge. The
commissioner or a compensation judge shall extend the time for completing the adverse
examination and filing the report upon good cause shown. The extension must not be for
the purpose of delay and the insurer must make a good faith effort to comply with this
subdivision. Good cause shall include but is not limited to:
(1) that the extension is necessary because of the limited number of physicians or
health care providers available with expertise in the particular injury or disease, or that the
extension is necessary due to the complexity of the medical issues, or
(2) that the extension is necessary to gather additional information which was not
included on the petition as required by section 176.291.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 10. Minnesota Statutes 2008, section 176.179, is amended to read:
176.179 RECOVERY OF OVERPAYMENTS.
Notwithstanding section 176.521, subdivision 3, or any other provision of this
chapter to the contrary, except as provided in this section, no lump-sum or weekly
payment, or settlement, which is voluntarily paid to an injured employee or the survivors
of a deceased employee in apparent or seeming accordance with the provisions of
this chapter by an employer or insurer, or is paid pursuant to an order of the workers'
compensation division, a compensation judge, or court of appeals relative to a claim by an
injured employee or the employee's survivors, and received in good faith by the employee
or the employee's survivors shall be refunded to the paying employer or insurer in the
event that it is subsequently determined that the payment was made under a mistake in fact
or law by the employer or insurer. When the payments have been made to a person who is
entitled to receive further payments of compensation for the same injury, the mistaken
compensation may be taken as a partial credit against future periodic benefits. The credit
applied against further payments of temporary total disability, temporary partial disability,
permanent partial disability, permanent total disability, retraining benefits, death benefits,
or weekly payments of economic recovery or impairment compensation shall not exceed
20 percent of the amount that would otherwise be payable.
A credit may not be applied An employer or insurer may not offset an overpayment
of benefits against:
(1) medical expenses due or payable.; or
(2) a penalty awarded to the employee for late payment or underpayment of benefits.
Where the commissioner or compensation judge determines that the mistaken
compensation was not received in good faith, the commissioner or compensation judge
may order reimbursement of the compensation. For purposes of this section, a payment
is not received in good faith if it is obtained through fraud, or if the employee knew
that the compensation was paid under mistake of fact or law, and the employee has not
refunded the mistaken compensation.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 11. Minnesota Statutes 2008, section 176.181, subdivision 8, is amended to read:
    Subd. 8. Data sharing. (a) The Departments of Labor and Industry, Employment
and Economic Development, Human Services, Agriculture, Transportation, and Revenue
are authorized to share information regarding the employment status of individuals,
including but not limited to Social Security numbers and payroll and withholding and
income tax information, and may use that information for purposes consistent with
this section and regarding the employment or employer status and federal employer
identification numbers of individuals, partnerships, limited liability companies,
corporations, or employers, including, but not limited to, general contractors, intermediate
contractors, and subcontractors. The commissioner shall request data in writing or
pursuant to a state agency agreement, and the responding department shall respond to the
request by producing the requested data within 30 days.
(b) The commissioner is authorized to inspect and to order the production of all
payroll and other business records and documents of any alleged employer in order to
determine the employment status of persons and compliance with this section. If any
person or employer refuses to comply with such an order, the commissioner may apply to
the district court of the county where the person or employer is located or may apply to
Ramsey County or the county where the nearest office of the Department of Labor and
Industry is located, for an order compelling production of the documents.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 12. Minnesota Statutes 2008, section 176.183, subdivision 2, is amended to read:
    Subd. 2. Special compensation fund; penalties. After a hearing on a petition
for benefits and prior to issuing an order against the special compensation fund to pay
compensation benefits to an employee, a compensation judge shall first make findings
regarding the insurance status of the employer and its liability. The special compensation
fund shall not be found liable in the absence of a finding of liability against the employer.
Where the liable employer is found after the hearing to be not insured or self-insured as
provided for in this chapter, the compensation judge shall assess and order the employer to
pay all compensation benefits to which the employee is entitled, the amount for any actual
and necessary disbursements expended by the special compensation fund, any actual and
necessary disbursements of the employee paid or reimbursed by the special compensation
fund, any attorney fees paid to the employee's attorney by the special compensation
fund, and a penalty in the amount of 65 percent of all compensation benefits ordered to
be paid. The award issued against an employer after the hearing shall constitute a lien
for government services pursuant to section 514.67 on all property of the employer and
shall be subject to the provisions of the Revenue Recapture Act in chapter 270A. The
special compensation fund may enforce the terms of that award in the same manner as
a district court judgment. The commissioner of labor and industry, in accordance with
the terms of the order awarding compensation, shall pay compensation to the employee
or the employee's dependent from the special compensation fund. The commissioner
of labor and industry shall certify to the commissioner of finance and to the legislature
annually the total amount of compensation paid from the special compensation fund under
subdivision 1. Compensation paid under this section shall remain a liability of the special
compensation fund and shall be financed by the percentage assessed under section 176.129.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 13. Minnesota Statutes 2008, section 176.186, is amended to read:
176.186 RECORDS FROM OTHER STATE AGENCIES.
Notwithstanding any other state law to the contrary except chapter 270B,
the commissioner may obtain from the Department of Employment and Economic
Development, and Office of the Secretary of State, or any other state agency, upon request,
names or lists of employers doing business in the state. This information shall be treated
by the commissioner in the manner provided by chapter 13. and shall be used only for
insurance verification by the commissioner.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 14. Minnesota Statutes 2008, 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 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, the employer shall report the injury to the
insurer on a form prescribed by the commissioner within 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 and insurer within
48 hours after the employer receives notice of this fact. An employer who provides notice
to the occupational safety and health division of the Department of Labor and Industry of
a fatality, or of inpatient hospitalization of three or more employees, within the eight-hour
time frame required by law has satisfied the employer's obligation under this section.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 15. Minnesota Statutes 2008, section 176.341, subdivision 1, is amended to read:
    Subdivision 1. Time. Upon receipt of a matter from the commissioner, the chief
administrative law judge shall fix a time and place for hearing the petition. The hearing
shall be held as soon as practicable and at a time and place determined by the chief
administrative law judge to be the most convenient for the parties, keeping in mind the
intent of chapter 176 and the requirements of section 176.306. Except where a shorter
time period is required under this chapter, all hearings must be held within 26 months after
a petition has been filed, unless the chief administrative law judge issues an order for a
later date for the hearing explaining why the hearing could not be held within 26 months.
EFFECTIVE DATE.This section is effective for petitions filed with the
commissioner on or after the day following final enactment.

    Sec. 16. Minnesota Statutes 2008, section 176.351, subdivision 2a, is amended 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 or settlement conference or hearing under section 176.106 or 176.239, or
who has certified or has declined to certify a dispute under section 176.081, subdivision 1,
paragraph (c), shall not be subpoenaed to testify regarding the conference, hearing, dispute
certification, 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 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.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 17. REPEALER.
Minnesota Statutes 2008, section 176.1021, is repealed.
EFFECTIVE DATE.This section is effective the day following final enactment.
Presented to the governor May 8, 2009
Signed by the governor May 12, 2009, 4:50 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569