1.1                          A bill for an act 
  1.2             relating to human services; directing the department 
  1.3             of human services to determine and pay certain 
  1.4             compensation of the appeals panel along with allowable 
  1.5             fees and costs of patient's counsel; extending the 
  1.6             state's authority to obtain a lien when covering 
  1.7             medical care for a person; adding provisions to notice 
  1.8             required for monetary claims; amending Minnesota 
  1.9             Statutes 1994, sections 253B.19, subdivision 1; 
  1.10            256.015, subdivision 4; and 256B.042, subdivisions 1 
  1.11            and 4; Minnesota Statutes 1995 Supplement, sections 
  1.12            256.015, subdivisions 1 and 2; and 256B.042, 
  1.13            subdivision 2. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1994, section 253B.19, 
  1.16  subdivision 1, is amended to read: 
  1.17     Subdivision 1.  [CREATION.] The supreme court shall 
  1.18  establish an appeal panel composed of three judges and four 
  1.19  alternate judges appointed from among the acting judges of the 
  1.20  state.  Panel members shall serve for terms of one year each.  
  1.21  Only three judges need hear any case.  One of the regular three 
  1.22  appointed judges shall be designated as the chief judge of the 
  1.23  appeal panel.  The chief judge is vested with power to fix the 
  1.24  time and place of all hearings before the panel, issue all 
  1.25  notices, subpoena witnesses, appoint counsel for the patient, if 
  1.26  necessary, and supervise and direct the operation of the appeal 
  1.27  panel.  The chief judge shall designate one of the other judges 
  1.28  or an alternate judge to act as chief judge in any case where 
  1.29  the chief judge is unable to act.  No member of the appeal panel 
  2.1   shall take part in the consideration of any case in which that 
  2.2   judge committed the patient.  ~~The chief justice of the supreme~~ 
  2.3   ~~court shall determine the compensation of the judges serving on~~ 
  2.4   ~~the appeal panel.  The compensation shall be in addition to~~ 
  2.5   ~~their regular compensation as judges~~ Judges serving on the 
  2.6   appeal panel shall not receive compensation in addition to their 
  2.7   regular compensation as judges, except that a retired judge may 
  2.8   receive the difference between the amount of the judge's pension 
  2.9   and the compensation of an active judge.  All other compensation 
  2.10  and expenses of the appeal panel and all allowable fees and 
  2.11  costs of the patient's counsel shall be set and paid by the 
  2.12  department of human services. 
  2.13     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  2.14  256.015, subdivision 1, is amended to read: 
  2.15     Subdivision 1.  [STATE AGENCY HAS LIEN.] When the state 
  2.16  agency provides, pays for, or becomes liable for medical care or 
  2.17  furnishes subsistence or other payments to a person, ~~the agency~~ 
  2.18  ~~has~~ it shall have a lien for the cost of the care and payments 
  2.19  on any and all causes of action ~~that~~, or recovery rights under 
  2.20  any policy, plan, or contract providing benefits for health care 
  2.21  or injury which accrue to the person to whom the care or 
  2.22  payments were furnished, or to the person's legal 
  2.23  representatives, as a result of the occurrence that necessitated 
  2.24  the medical care, subsistence, or other payments.  For purposes 
  2.25  of this section, "state agency" includes authorized agents of 
  2.26  the state agency. 
  2.27     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
  2.28  256.015, subdivision 2, is amended to read: 
  2.29     Subd. 2.  [PERFECTION; ENFORCEMENT.] (a) The state agency 
  2.30  may perfect and enforce its lien under sections 514.69, 514.70, 
  2.31  and 514.71, and must file the verified lien statement with the 
  2.32  appropriate court administrator in the county of financial 
  2.33  responsibility.  The verified lien statement must contain the 
  2.34  following:  the name and address of the person to whom medical 
  2.35  care, subsistence, or other payment was furnished; the date of 
  2.36  injury; the name and address of vendors furnishing medical care; 
  3.1   the dates of the service or payment; the amount claimed to be 
  3.2   due for the care or payment; and to the best of the state 
  3.3   agency's knowledge, the names and addresses of all persons, 
  3.4   firms, or corporations claimed to be liable for damages arising 
  3.5   from the injuries.  
  3.6      (b) This section does not affect the priority of any 
  3.7   attorney's lien.  The state agency is not subject to any 
  3.8   limitations period referred to in section 514.69 or 514.71 and 
  3.9   has one year from the date notice is first received by it under 
  3.10  subdivision 4, paragraph (c), even if the notice is untimely, or 
  3.11  one year from the date medical bills are first paid by the state 
  3.12  agency, whichever is later, to file its verified lien 
  3.13  statement.  The state agency may commence an action to enforce 
  3.14  the lien within one year of (1) the date the notice required by 
  3.15  subdivision 4, paragraph (c), is received, or (2) the date the 
  3.16  person's cause of action is concluded by judgment, award, 
  3.17  settlement, or otherwise, whichever is later. 
  3.18     (c) If the notice required in subdivision 4 is not provided 
  3.19  by any of the parties to the claim at any stage of the claim, 
  3.20  the state agency will have one year from the date it learns of 
  3.21  the lack of notice to commence its action.  If amounts on the 
  3.22  claim or cause of action are paid and the amount required to be 
  3.23  paid to the state agency under subdivision 5, is not paid to the 
  3.24  state agency, the state agency may commence an action to recover 
  3.25  on the lien against any or all of the parties or entities which 
  3.26  have either paid or received the payments. 
  3.27     Sec. 4.  Minnesota Statutes 1994, section 256.015, 
  3.28  subdivision 4, is amended to read: 
  3.29     Subd. 4.  [NOTICE.] The state agency must be given notice 
  3.30  of monetary claims against a person, firm, or corporation that 
  3.31  may be liable in damages to the injured person when the state 
  3.32  agency has paid for or become liable for the cost of medical 
  3.33  care or payments related to the injury.  Notice must be given as 
  3.34  follows: 
  3.35     (a) Applicants for public assistance shall notify the state 
  3.36  or county agency of any possible claims they may have against a 
  4.1   person, firm, or corporation when they submit the application 
  4.2   for assistance.  Recipients of public assistance shall notify 
  4.3   the state or county agency of any possible claims when those 
  4.4   claims arise. 
  4.5      (b) A person providing medical care services to a recipient 
  4.6   of public assistance shall notify the state agency when the 
  4.7   person has reason to believe that a third party may be liable 
  4.8   for payment of the cost of medical care. 
  4.9      (c) A ~~person who is a~~ party to a claim upon which the state 
  4.10  agency may be entitled to a lien under this section shall notify 
  4.11  the state agency of its potential lien claim ~~before filing a~~ 
  4.12  ~~claim, commencing an action, or negotiating a settlement~~ at each 
  4.13  of the following stages of a claim:  (1) when a claim is filed; 
  4.14  (2) when an action is commenced; and (3) when a claim is 
  4.15  concluded by payment, award, judgment, settlement, or 
  4.16  otherwise.  Every party involved in any stage of a claim under 
  4.17  this subdivision is required to provide notice to the state 
  4.18  agency at that stage of the claim, except when one of the 
  4.19  parties to the claim provides notice at that stage, every other 
  4.20  party to the claim is deemed to have provided the required 
  4.21  notice at that stage of the claim.  If no party provides notice, 
  4.22  every party will be deemed to have failed to provide the notice 
  4.23  required under this paragraph.  A ~~person who is a~~ party to a 
  4.24  claim includes the injured person or the person's legal 
  4.25  representative, the plaintiff, the defendants or persons alleged 
  4.26  to be responsible for compensating the injured person or 
  4.27  plaintiff, and any other party to the cause of action or claim, 
  4.28  regardless of whether the party knows the state agency has a 
  4.29  potential or actual lien claim.  
  4.30     Notice given to the county agency is not sufficient to meet 
  4.31  the requirements of paragraphs (b) and (c). 
  4.32     Sec. 5.  Minnesota Statutes 1994, section 256B.042, 
  4.33  subdivision 1, is amended to read: 
  4.34     Subdivision 1.  When the state agency provides, pays for, 
  4.35  or becomes liable for medical care, it shall have a lien for the 
  4.36  cost of the care upon any and all causes of action or recovery 
  5.1   rights under any policy, plan, or contract providing benefits 
  5.2   for health care or injury, which accrue to the person to whom 
  5.3   the care was furnished, or to the person's legal 
  5.4   representatives, as a result of the illness or injuries which 
  5.5   necessitated the medical care. 
  5.6      Sec. 6.  Minnesota Statutes 1995 Supplement, section 
  5.7   256B.042, subdivision 2, is amended to read: 
  5.8      Subd. 2.  [LIEN ENFORCEMENT.] (a) The state agency may 
  5.9   perfect and enforce its lien by following the procedures set 
  5.10  forth in sections 514.69, 514.70 and 514.71, and its verified 
  5.11  lien statement shall be filed with the appropriate court 
  5.12  administrator in the county of financial responsibility.  The 
  5.13  verified lien statement shall contain the following:  the name 
  5.14  and address of the person to whom medical care was furnished, 
  5.15  the date of injury, the name and address of the vendor or 
  5.16  vendors furnishing medical care, the dates of the service, the 
  5.17  amount claimed to be due for the care, and, to the best of the 
  5.18  state agency's knowledge, the names and addresses of all 
  5.19  persons, firms, or corporations claimed to be liable for damages 
  5.20  arising from the injuries.  This section shall not affect the 
  5.21  priority of any attorney's lien.  
  5.22     (b) The state agency is not subject to any limitations 
  5.23  period referred to in section 514.69 or 514.71 and has one year 
  5.24  from the date notice is first received by it under subdivision 
  5.25  4, paragraph (c), even if the notice is untimely, or one year 
  5.26  from the date medical bills are first paid by the state agency, 
  5.27  whichever is later, to file its verified lien statement.  The 
  5.28  state agency may commence an action to enforce the lien within 
  5.29  one year of (1) the date the notice required by subdivision 4, 
  5.30  paragraph (c), is received or (2) the date the recipient's cause 
  5.31  of action is concluded by judgment, award, settlement, or 
  5.32  otherwise, whichever is later.  For purposes of this section, 
  5.33  "state agency" includes authorized agents of the state agency.  
  5.34     (c) If the notice required in subdivision 4 is not provided 
  5.35  by any of the parties to the claim at any stage of the claim, 
  5.36  the state agency will have one year from the date it learns of 
  6.1   the lack of notice to commence its action.  If amounts on the 
  6.2   claim or cause of action are paid and the amount required to be 
  6.3   paid to the state agency under subdivision 5, is not paid to the 
  6.4   state agency, the state agency may commence an action to recover 
  6.5   on the lien against any or all of the parties or entities which 
  6.6   have either paid or received the payments. 
  6.7      Sec. 7.  Minnesota Statutes 1994, section 256B.042, 
  6.8   subdivision 4, is amended to read: 
  6.9      Subd. 4.  [NOTICE.] The state agency must be given notice 
  6.10  of monetary claims against a person, firm, or corporation that 
  6.11  may be liable to pay part or all of the cost of medical care 
  6.12  when the state agency has paid or become liable for the cost of 
  6.13  that care.  Notice must be given as follows:  
  6.14     (a) Applicants for medical assistance shall notify the 
  6.15  state or local agency of any possible claims when they submit 
  6.16  the application.  Recipients of medical assistance shall notify 
  6.17  the state or local agency of any possible claims when those 
  6.18  claims arise. 
  6.19     (b) A person providing medical care services to a recipient 
  6.20  of medical assistance shall notify the state agency when the 
  6.21  person has reason to believe that a third party may be liable 
  6.22  for payment of the cost of medical care.  
  6.23     (c) A ~~person who is a~~ party to a claim upon which the state 
  6.24  agency may be entitled to a lien under this section shall notify 
  6.25  the state agency of its potential lien claim ~~before filing a~~ 
  6.26  ~~claim, commencing an action, or negotiating a settlement~~ at each 
  6.27  of the following stages of a claim:  (1) when a claim is filed; 
  6.28  (2) when an action is commenced; and (3) when a claim is 
  6.29  concluded by payment, award, judgment, settlement, or 
  6.30  otherwise.  Every party involved in any stage of a claim under 
  6.31  this subdivision is required to provide notice to the state 
  6.32  agency at that stage of the claim, except when one of the 
  6.33  parties to the claim provides notice at that stage, every other 
  6.34  party to the claim is deemed to have provided the required 
  6.35  notice at that stage of the claim.  If no party provides notice, 
  6.36  all parties to the claim are deemed to have failed to provide 
  7.1   the notice required under this paragraph.  A ~~person who is a~~ 
  7.2   party to a claim includes the injured person or the person's 
  7.3   legal representative, the plaintiff, the defendants or persons 
  7.4   alleged to be responsible for compensating the injured person or 
  7.5   plaintiff, and any other party to the cause of action or claim, 
  7.6   regardless of whether the party knows the state agency has a 
  7.7   potential or actual lien claim. 
  7.8      Notice given to the local agency is not sufficient to meet 
  7.9   the requirements of paragraphs (b) and (c).