1.1                          A bill for an act 
  1.2             relating to workers' compensation; permitting a 
  1.3             collective bargaining agreement to address certain 
  1.4             obligations and procedures relating to workers' 
  1.5             compensation; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 176. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [176.1812] [COLLECTIVE BARGAINING AGREEMENTS.] 
  1.9      Subdivision 1.  [REQUIREMENTS.] Upon appropriate filing, 
  1.10  the commissioner, compensation judge, workers' compensation 
  1.11  court of appeals, and courts shall recognize as valid and 
  1.12  binding a provision in a collective bargaining agreement between 
  1.13  a qualified employer or qualified groups of employers engaged in 
  1.14  construction, construction maintenance, and related activities 
  1.15  and the recognized or certified and exclusive representative of 
  1.16  its employees to establish certain obligations and procedures 
  1.17  relating to workers' compensation.  For purposes of this 
  1.18  section, "qualified employer" means a private employer 
  1.19  developing or projecting an annual workers' compensation 
  1.20  premium, in Minnesota, of $250,000 or more and a "qualified 
  1.21  group of employers" means a group of private employers engaged 
  1.22  in workers' compensation group self-insurance complying with 
  1.23  section 79A.03, subdivision 6, which develops or projects annual 
  1.24  workers' compensation insurance premiums of $2,000,000 or more.  
  1.25  This agreement must be limited to, but need not include, all of 
  1.26  the following: 
  2.1      (a) an alternative dispute resolution system to supplement, 
  2.2   modify, or replace the procedural or dispute resolution 
  2.3   provisions of this chapter.  The system may include mediation, 
  2.4   arbitration, or other dispute resolution proceedings, the 
  2.5   results of which may be finally binding upon the parties.  A 
  2.6   system of arbitration may provide that the decision of the 
  2.7   arbiter is subject to review either by the workers' compensation 
  2.8   court of appeals in the same manner as an award or order of a 
  2.9   compensation judge or, in lieu of review by the workers' 
  2.10  compensation court of appeals, by the district court, by the 
  2.11  Minnesota court of appeals, or by the supreme court in the same 
  2.12  manner as the workers' compensation court of appeals; 
  2.13     (b) an agreed list of providers of medical treatment that 
  2.14  may be the exclusive source of all medical and related treatment 
  2.15  provided under this chapter which shall not be subject to the 
  2.16  requirements in section 176.1351; 
  2.17     (c) the use of a limited list of impartial physicians to 
  2.18  conduct independent medical examinations; 
  2.19     (d) the creation of a light duty, modified job, or return 
  2.20  to work program; 
  2.21     (e) the establishment of vocational rehabilitation or 
  2.22  retraining programs which are not subject to the requirements of 
  2.23  section 176.102; or 
  2.24     (f) the adoption of a 24-hour health care coverage plan. 
  2.25     Subd. 2.  [FILING AND REVIEW.] A copy of the agreement and 
  2.26  the approximate number of employees who will be covered under it 
  2.27  must be filed with the commissioner.  Within 21 days of receipt 
  2.28  of an agreement, the commissioner shall review the agreement for 
  2.29  compliance with the benefit provisions of this chapter and 
  2.30  notify the parties of any additional information required or any 
  2.31  recommended modification that would bring the agreement into 
  2.32  compliance.  Upon receipt of any requested information or 
  2.33  modification, the commissioner must notify the parties within 21 
  2.34  days whether the agreement is in compliance with the benefit 
  2.35  provisions of this chapter. 
  2.36     In order for any agreement to remain in effect, it must 
  3.1   provide for a timely and accurate method of reporting to the 
  3.2   commissioner necessary information regarding service cost and 
  3.3   utilization to enable the commissioner to annually report to the 
  3.4   legislature.  The information provided to the commissioner must 
  3.5   include aggregate data on the: 
  3.6      (i) person hours covered by agreements filed; 
  3.7      (ii) number of claims filed; 
  3.8      (iii) average cost per claim; 
  3.9      (iv) number of litigated claims, including the number of 
  3.10  claims submitted to arbitration, the workers' compensation court 
  3.11  of appeals, the district court, the Minnesota court of appeals 
  3.12  or the supreme court; 
  3.13     (v) number of contested claims resolved prior to 
  3.14  arbitration; 
  3.15     (vi) projected incurred costs and actual costs of claims; 
  3.16     (vii) employer's safety history; 
  3.17     (viii) number of workers participating in vocational 
  3.18  rehabilitation; and 
  3.19     (ix) number of workers participating in light-duty programs.
  3.20     Subd. 3.  [REFUSAL TO RECOGNIZE.] A person aggrieved by the 
  3.21  commissioner's decision concerning an agreement may request in 
  3.22  writing, within 30 days of the date the notice is issued, the 
  3.23  initiation of a contested case proceeding under chapter 14.  The 
  3.24  request to initiate a contested case must be received by the 
  3.25  department by the 30th day after the commissioner's decision.  
  3.26  An appeal from the commissioner's final decision and order may 
  3.27  be taken to the workers' compensation court of appeals pursuant 
  3.28  to sections 176.421 and 176.442. 
  3.29     Subd. 4.  [VOID AGREEMENTS.] Nothing in this section shall 
  3.30  allow any agreement that diminishes an employee's entitlement to 
  3.31  benefits as otherwise set forth in this chapter.  Any agreement 
  3.32  that diminishes an employee's entitlement to benefits as set 
  3.33  forth in this chapter is null and void. 
  3.34     Subd. 5.  [NOTICE TO INSURANCE CARRIER.] If the employer is 
  3.35  insured under this chapter, the collective bargaining agreement 
  3.36  provision shall not be recognized by the commissioner, 
  4.1   compensation judge, workers' compensation court of appeals, and 
  4.2   other courts unless the employer has given notice to the 
  4.3   employer's insurance carrier, in the manner provided in the 
  4.4   insurance contract, of intent to enter into an agreement with 
  4.5   its employees as provided in this section. 
  4.6      Subd. 6.  [PILOT PROGRAM.] The commissioner shall establish 
  4.7   a pilot program ending December 31, 1997, in which up to ten 
  4.8   private employers not otherwise able to participate in the 
  4.9   agreements provided for in this section shall be authorized to 
  4.10  enter into valid agreements with their employees.  The 
  4.11  agreements shall be recognized and enforced as provided by this 
  4.12  section.  Notwithstanding subdivision 1, private employers 
  4.13  engaged in any type of business activity may participate in the 
  4.14  pilot program through agreements with the majority of employees 
  4.15  to be covered by the proposed agreement whether or not the 
  4.16  employees have a recognized or certified and exclusive 
  4.17  representative and without regard to the dollar insurance 
  4.18  premium limitations in subdivision 1. 
  4.19     Subd. 7.  [RULES.] The commissioner may adopt emergency or 
  4.20  permanent rules necessary to implement this section.