<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to workers' compensation; adopting the recommendations of the Workers' <br />
         		<a id="pl.1.3"></a><var>1.3</var>Compensation Advisory Council;amending Minnesota Statutes 2012, sections <br />
         		<a id="pl.1.4"></a><var>1.4</var>176.129, subdivisions 2a, 7; 176.135, subdivision 7; 176.136, subdivision 1a; <br />
         		<a id="pl.1.5"></a><var>1.5</var>176.231, subdivision 2; 176.305, subdivision 1a; Minnesota Statutes 2013 <br />
         		<a id="pl.1.6"></a><var>1.6</var>Supplement, section 176.011, subdivision 15; repealing Minnesota Statutes 2012, <br />
         		<a id="pl.1.7"></a><var>1.7</var>sections 175.006, subdivision 1; 175.08; 175.14; 175.26; 176.1311; 176.136, <br />
         		<a id="pl.1.8"></a><var>1.8</var>subdivision 3; 176.2615; 176.641.<br />
         		<a id="pl.1.9"></a><var>1.9</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.10"></a><var>1.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2013 Supplement, section 176.011, subdivision 15, <br />
         		<a id="pl.1.11"></a><var>1.11</var>is amended to read:<br />
         		<a id="pl.1.12"></a><var>1.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Occupational disease.</b> (a) "Occupational disease" means a mental <br />
         		<a id="pl.1.13"></a><var>1.13</var>impairment as defined in paragraph (d) or physical disease arising out of and in the <br />
         		<a id="pl.1.14"></a><var>1.14</var>course of employment peculiar to the occupation in which the employee is engaged <br />
         		<a id="pl.1.15"></a><var>1.15</var>and due to causes in excess of the hazards ordinary of employment and shall include <br />
         		<a id="pl.1.16"></a><var>1.16</var>undulant fever. Physical stimulus resulting in mental injury and mental stimulus resulting <br />
         		<a id="pl.1.17"></a><var>1.17</var>in physical injury shall remain compensable. Mental impairment is not considered a <br />
         		<a id="pl.1.18"></a><var>1.18</var>disease if it results from a disciplinary action, work evaluation, job transfer, layoff, <br />
         		<a id="pl.1.19"></a><var>1.19</var>demotion, promotion, termination, retirement, or similar action taken in good faith by the <br />
         		<a id="pl.1.20"></a><var>1.20</var>employer. Ordinary diseases of life to which the general public is equally exposed outside <br />
         		<a id="pl.1.21"></a><var>1.21</var>of employment are not compensable, except where the diseases follow as an incident of an <br />
         		<a id="pl.1.22"></a><var>1.22</var>occupational disease, or where the exposure peculiar to the occupation makes the disease <br />
         		<a id="pl.1.23"></a><var>1.23</var>an occupational disease hazard. A disease arises out of the employment only if there be a <br />
         		<a id="pl.1.24"></a><var>1.24</var>direct causal connection between the conditions under which the work is performed and <br />
         		<a id="pl.1.25"></a><var>1.25</var>if the occupational disease follows as a natural incident of the work as a result of the <br />
         		<a id="pl.1.26"></a><var>1.26</var>exposure occasioned by the nature of the employment. An employer is not liable for <br />
         		<a id="pl.2.1"></a><var>2.1</var>compensation for any occupational disease which cannot be traced to the employment as a <br />
         		<a id="pl.2.2"></a><var>2.2</var>direct and proximate cause and is not recognized as a hazard characteristic of and peculiar <br />
         		<a id="pl.2.3"></a><var>2.3</var>to the trade, occupation, process, or employment or which results from a hazard to which <br />
         		<a id="pl.2.4"></a><var>2.4</var>the worker would have been equally exposed outside of the employment.<br />
         		<a id="pl.2.5"></a><var>2.5</var>(b) If immediately preceding the date of disablement or death, an employee was <br />
         		<a id="pl.2.6"></a><var>2.6</var>employed on active duty with an organized fire or police department of any municipality, <br />
         		<a id="pl.2.7"></a><var>2.7</var>as a member of the Minnesota State Patrol, conservation officer service, state crime bureau, <br />
         		<a id="pl.2.8"></a><var>2.8</var>as a forest officer by the Department of Natural Resources, state correctional officer, or <br />
         		<a id="pl.2.9"></a><var>2.9</var>sheriff or full-time deputy sheriff of any county, and the disease is that of myocarditis, <br />
         		<a id="pl.2.10"></a><var>2.10</var>coronary sclerosis, pneumonia or its sequel, and at the time of employment such employee <br />
         		<a id="pl.2.11"></a><var>2.11</var>was given a thorough physical examination by a licensed doctor of medicine, and a written <br />
         		<a id="pl.2.12"></a><var>2.12</var>report thereof has been made and filed with such organized fire or police department, with <br />
         		<a id="pl.2.13"></a><var>2.13</var>the Minnesota State Patrol, conservation officer service, state crime bureau, Department <br />
         		<a id="pl.2.14"></a><var>2.14</var>of Natural Resources, Department of Corrections, or sheriff's department of any county, <br />
         		<a id="pl.2.15"></a><var>2.15</var>which examination and report negatived any evidence of myocarditis, coronary sclerosis, <br />
         		<a id="pl.2.16"></a><var>2.16</var>pneumonia or its sequel, the disease is presumptively an occupational disease and shall <br />
         		<a id="pl.2.17"></a><var>2.17</var>be presumed to have been due to the nature of employment. If immediately preceding <br />
         		<a id="pl.2.18"></a><var>2.18</var>the date of disablement or death, any individual who by nature of their position provides <br />
         		<a id="pl.2.19"></a><var>2.19</var>emergency medical care, or an employee who was employed as a licensed police officer <br />
         		<a id="pl.2.20"></a><var>2.20</var>under section 
         <statute_ref>626.84, subdivision 1</statute_ref>; firefighter; paramedic; state correctional officer; <br />
         		<a id="pl.2.21"></a><var>2.21</var>emergency medical technician; or licensed nurse providing emergency medical care; and <br />
         		<a id="pl.2.22"></a><var>2.22</var>who contracts an infectious or communicable disease to which the employee was exposed <br />
         		<a id="pl.2.23"></a><var>2.23</var>in the course of employment outside of a hospital, then the disease is presumptively an <br />
         		<a id="pl.2.24"></a><var>2.24</var>occupational disease and shall be presumed to have been due to the nature of employment <br />
         		<a id="pl.2.25"></a><var>2.25</var>and the presumption may be rebutted by substantial factors brought by the employer <br />
         		<a id="pl.2.26"></a><var>2.26</var>or insurer. Any substantial factors which shall be used to rebut this presumption and <br />
         		<a id="pl.2.27"></a><var>2.27</var>which are known to the employer or insurer at the time of the denial of liability shall be <br />
         		<a id="pl.2.28"></a><var>2.28</var>communicated to the employee on the denial of liability.<br />
         		<a id="pl.2.29"></a><var>2.29</var>(c) A firefighter on active duty with an organized fire department who is unable <br />
         		<a id="pl.2.30"></a><var>2.30</var>to perform duties in the department by reason of a disabling cancer of a type caused <br />
         		<a id="pl.2.31"></a><var>2.31</var>by exposure to heat, radiation, or a known or suspected carcinogen, as defined by the <br />
         		<a id="pl.2.32"></a><var>2.32</var>International Agency for Research on Cancer, and the carcinogen is reasonably linked to <br />
         		<a id="pl.2.33"></a><var>2.33</var>the disabling cancer, is presumed to have an occupational disease under paragraph (a). If a <br />
         		<a id="pl.2.34"></a><var>2.34</var>firefighter who enters the service after August 1, 1988, is examined by a physician prior to <br />
         		<a id="pl.2.35"></a><var>2.35</var>being hired and the examination discloses the existence of a cancer of a type described <br />
         		<a id="pl.3.1"></a><var>3.1</var>in this paragraph, the firefighter is not entitled to the presumption unless a subsequent <br />
         		<a id="pl.3.2"></a><var>3.2</var>medical determination is made that the firefighter no longer has the cancer.<br />
         		<a id="pl.3.3"></a><var>3.3</var>(d) For the purposes of this chapter, "mental impairment" means a diagnosis of <br />
         		<a id="pl.3.4"></a><var>3.4</var>post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purposes <br />
         		<a id="pl.3.5"></a><var>3.5</var>of this chapter, "post-traumatic stress disorder" means the condition as described in <br />
         		<a id="pl.3.6"></a><var>3.6</var>the most recently published edition of the Diagnostic and Statistical Manual of Mental <br />
         		<a id="pl.3.7"></a><var>3.7</var>Disorders by the American Psychiatric Association. For purposes of section 79.34, <br />
         		<a id="pl.3.8"></a><var>3.8</var>subdivision 2, one or more compensable mental impairment claims arising out of a single <br />
         		<a id="pl.3.9"></a><var>3.9</var>event or occurrence shall constitute a single loss occurrence.<br />
         		<a id="pl.3.10"></a><var>3.10</var><b>EFFECTIVE DATE.</b>This section is effective for employees with dates of injury on <br />
         		<a id="pl.3.11"></a><var>3.11</var>or after October 1, 2013.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.3.12"></a><var>3.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 176.129, subdivision 2a, is amended to read:<br />
         		<a id="pl.3.13"></a><var>3.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2a. <b>Payments to fund.</b> (a) On or before April 1 of each year, all self-insured <br />
         		<a id="pl.3.14"></a><var>3.14</var>employers shall report paid indemnity losses and insurers shall report paid indemnity <br />
         		<a id="pl.3.15"></a><var>3.15</var>losses and standard workers' compensation premium in the form and manner prescribed <br />
         		<a id="pl.3.16"></a><var>3.16</var>by the commissioner. On June 1 of each year, the commissioner shall determine the <br />
         		<a id="pl.3.17"></a><var>3.17</var>total amount needed to pay all estimated liabilities, including administrative expenses, <br />
         		<a id="pl.3.18"></a><var>3.18</var>of the special compensation fund for the following fiscal year. The commissioner shall <br />
         		<a id="pl.3.19"></a><var>3.19</var>assess this amount against self-insured employers and insurers. The total amount of the <br />
         		<a id="pl.3.20"></a><var>3.20</var>assessment must be allocated between self-insured employers and insured employers <br />
         		<a id="pl.3.21"></a><var>3.21</var>based on paid indemnity losses for the preceding calendar year, as provided by paragraph <br />
         		<a id="pl.3.22"></a><var>3.22</var>(b). The method of assessing self-insured employers must be based on paid indemnity <br />
         		<a id="pl.3.23"></a><var>3.23</var>losses, as provided by paragraph (c). The method of assessing insured employers is based <br />
         		<a id="pl.3.24"></a><var>3.24</var>on standard workers' compensation premium, as provided by paragraph (c). Each insurer <br />
         		<a id="pl.3.25"></a><var>3.25</var>shall collect the assessment through a policyholder surcharge as provided by paragraph <br />
         		<a id="pl.3.26"></a><var>3.26</var>(d). On or before June 30 of each year, the commissioner shall provide notification to each <br />
         		<a id="pl.3.27"></a><var>3.27</var>self-insured employer and insurer of amounts due. Each self-insured employer and each <br />
         		<a id="pl.3.28"></a><var>3.28</var>insurer shall pay at least one-half of the amount due to the commissioner for deposit into <br />
         		<a id="pl.3.29"></a><var>3.29</var>the special compensation fund on or before August 1 of the same calendar year. The <br />
         		<a id="pl.3.30"></a><var>3.30</var>remaining balance is due on February 1 of the following calendar year. Each insurer must <br />
         		<a id="pl.3.31"></a><var>3.31</var>pay the full amount due as stated in the commissioner's notification, regardless of the <br />
         		<a id="pl.3.32"></a><var>3.32</var>amount the insurer actually collects from the ~~premium~~ policyholder surcharge.<br />
         		<a id="pl.3.33"></a><var>3.33</var>(b) The portion of the total assessment that is allocated to self-insured employers <br />
         		<a id="pl.3.34"></a><var>3.34</var>is the proportion that paid indemnity losses made by all self-insured employers bore to <br />
         		<a id="pl.3.35"></a><var>3.35</var>the total paid indemnity losses made by all self-insured employers and insured employers <br />
         		<a id="pl.4.1"></a><var>4.1</var>during the preceding calendar year. The portion of the total assessment that is allocated <br />
         		<a id="pl.4.2"></a><var>4.2</var>to insured employers is the proportion that paid indemnity losses made on behalf of <br />
         		<a id="pl.4.3"></a><var>4.3</var>all insured employers bore to the total paid indemnity losses made by all self-insured <br />
         		<a id="pl.4.4"></a><var>4.4</var>employers and insured employers during the preceding calendar year.<br />
         		<a id="pl.4.5"></a><var>4.5</var>(c) The portion of the total assessment allocated to self-insured employers that <br />
         		<a id="pl.4.6"></a><var>4.6</var>shall be paid by each self-insured employer must be based upon paid indemnity losses <br />
         		<a id="pl.4.7"></a><var>4.7</var>made by that self-insured employer during the preceding calendar year. The portion of <br />
         		<a id="pl.4.8"></a><var>4.8</var>the total assessment allocated to insured employers that is paid by each insurer must be <br />
         		<a id="pl.4.9"></a><var>4.9</var>based on standard workers' compensation premium earned in the state by that insurer <br />
         		<a id="pl.4.10"></a><var>4.10</var>during the ~~preceding~~ current calendar year. If the current calendar year earned standard <br />
         		<a id="pl.4.11"></a><var>4.11</var>workers' compensation premium is not available, the commissioner shall estimate the <br />
         		<a id="pl.4.12"></a><var>4.12</var>portion of the total assessment allocated to insured employers that is paid by each insurer <br />
         		<a id="pl.4.13"></a><var>4.13</var>using the earned standard workers' compensation premium from the preceding calendar <br />
         		<a id="pl.4.14"></a><var>4.14</var>year. The commissioner shall then perform a reconciliation and final determination of <br />
         		<a id="pl.4.15"></a><var>4.15</var>the portion of the total assessment to be paid by each insurer when the earned standard <br />
         		<a id="pl.4.16"></a><var>4.16</var>workers' compensation premium for the current calendar year is calculable, but the final <br />
         		<a id="pl.4.17"></a><var>4.17</var>determination must not be made after December 1 of the following calendar year. An <br />
         		<a id="pl.4.18"></a><var>4.18</var>employer who has ceased to be self-insured shall continue to be liable for assessments <br />
         		<a id="pl.4.19"></a><var>4.19</var>based on paid indemnity losses arising out of injuries occurring during periods when the <br />
         		<a id="pl.4.20"></a><var>4.20</var>employer was self-insured, unless the self-insured employer has purchased a replacement <br />
         		<a id="pl.4.21"></a><var>4.21</var>policy covering those losses. An insurer who assumes a self-insured employer's obligation <br />
         		<a id="pl.4.22"></a><var>4.22</var>under a replacement policy shall separately report and pay assessments based on indemnity <br />
         		<a id="pl.4.23"></a><var>4.23</var>losses paid by the insurer under the replacement policy. The replacement policy may <br />
         		<a id="pl.4.24"></a><var>4.24</var>provide for reimbursement of the assessment to the insurer by the self-insured employer.<br />
         		<a id="pl.4.25"></a><var>4.25</var>(d) Insurers shall collect the assessments from their insured employers through <br />
         		<a id="pl.4.26"></a><var>4.26</var>a surcharge based on standard workers' compensation premium for each employer. <br />
         		<a id="pl.4.27"></a><var>4.27</var>Assessments when collected do not constitute an element of loss for the purpose of <br />
         		<a id="pl.4.28"></a><var>4.28</var>establishing rates for workers' compensation insurance but for the purpose of collection <br />
         		<a id="pl.4.29"></a><var>4.29</var>are treated as separate costs imposed on insured employers. The ~~premium~~ policyholder<br />
         		<a id="pl.4.30"></a><var>4.30</var> surcharge is included in the definition of gross premium as defined in section 
         <statute_ref>297I.01</statute_ref> only <br />
         		<a id="pl.4.31"></a><var>4.31</var>for premium tax purposes. An insurer may cancel a policy for nonpayment of the ~~premium~~<br />
         		<a id="pl.4.32"></a><var>4.32</var> policyholder surcharge. The ~~premium~~ policyholder surcharge is excluded from the <br />
         		<a id="pl.4.33"></a><var>4.33</var>definition of premium for all other purposes, except as otherwise provided in this paragraph.<br />
         		<a id="pl.4.34"></a><var>4.34</var>(e) For purposes of this section, the workers' compensation assigned risk plan <br />
         		<a id="pl.4.35"></a><var>4.35</var>established under section 
         <statute_ref>79.252</statute_ref>, shall report and pay assessments on standard workers' <br />
         		<a id="pl.4.36"></a><var>4.36</var>compensation premium in the same manner as an insurer.<br />
         		<a id="pl.5.1"></a><var>5.1</var><b>EFFECTIVE DATE.</b>This section is effective for assessments due under Minnesota <br />
         		<a id="pl.5.2"></a><var>5.2</var>Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February <br />
         		<a id="pl.5.3"></a><var>5.3</var>1, 2014, and for the first reconciliation and final determination under Minnesota Statutes, <br />
         		<a id="pl.5.4"></a><var>5.4</var>section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.5.5"></a><var>5.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 176.129, subdivision 7, is amended to read:<br />
         		<a id="pl.5.6"></a><var>5.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Refunds.</b> In case deposit is or has been made pursuant to subdivision <br />
         		<a id="pl.5.7"></a><var>5.7</var>2a by mistake or inadvertence, or under circumstances that justice requires a refund, <br />
         		<a id="pl.5.8"></a><var>5.8</var>the commissioner of management and budget is authorized to refund the deposit under <br />
         		<a id="pl.5.9"></a><var>5.9</var>order of the commissioner, a compensation judge, the Workers' Compensation Court of <br />
         		<a id="pl.5.10"></a><var>5.10</var>Appeals, or a district court. Claims for refunds must be submitted to the commissioner <br />
         		<a id="pl.5.11"></a><var>5.11</var>within three years of the ~~assessment due~~ date of reconciliation and final determination <br />
         		<a id="pl.5.12"></a><var>5.12</var>under subdivision 2a. There is appropriated to the commissioner from the fund an amount <br />
         		<a id="pl.5.13"></a><var>5.13</var>sufficient to make the refund and payment.<br />
         		<a id="pl.5.14"></a><var>5.14</var><b>EFFECTIVE DATE.</b>This section is effective for assessments due under Minnesota <br />
         		<a id="pl.5.15"></a><var>5.15</var>Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February <br />
         		<a id="pl.5.16"></a><var>5.16</var>1, 2014, and for the first reconciliation and final determination under Minnesota Statutes, <br />
         		<a id="pl.5.17"></a><var>5.17</var>section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.5.18"></a><var>5.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2012, section 176.135, subdivision 7, is amended to read:<br />
         		<a id="pl.5.19"></a><var>5.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Medical bills and records.</b> (a) Health care providers shall submit to the <br />
         		<a id="pl.5.20"></a><var>5.20</var>insurer an itemized statement of charges in the standard electronic transaction format when <br />
         		<a id="pl.5.21"></a><var>5.21</var>required by section 
         <statute_ref>62J.536</statute_ref> or, if there is no prescribed standard electronic transaction <br />
         		<a id="pl.5.22"></a><var>5.22</var>format, on a billing form prescribed by the commissioner. Health care providers shall also <br />
         		<a id="pl.5.23"></a><var>5.23</var>submit copies of medical records or reports that substantiate the nature of the charge and its <br />
         		<a id="pl.5.24"></a><var>5.24</var>relationship to the work injury. Health care providers may charge for copies of any records <br />
         		<a id="pl.5.25"></a><var>5.25</var>or reports that are in existence and directly relate to the items for which payment is sought <br />
         		<a id="pl.5.26"></a><var>5.26</var>under this chapter. The commissioner shall adopt a schedule of reasonable charges by rule.<br />
         		<a id="pl.5.27"></a><var>5.27</var>A health care provider shall not collect, attempt to collect, refer a bill for collection, <br />
         		<a id="pl.5.28"></a><var>5.28</var>or commence an action for collection against the employee, employer, or any other party <br />
         		<a id="pl.5.29"></a><var>5.29</var>until the information required by this section has been furnished.<br />
         		<a id="pl.5.30"></a><var>5.30</var>A United States government facility rendering health care services to veterans is not <br />
         		<a id="pl.5.31"></a><var>5.31</var>subject to the uniform billing form requirements of this subdivision.<br />
         		<a id="pl.5.32"></a><var>5.32</var>(b) For medical services provided under this section, the codes from the International <br />
         		<a id="pl.5.33"></a><var>5.33</var>Classification of Diseases, Tenth Edition, Clinical Modification/Procedure Coding System <br />
         		<a id="pl.5.34"></a><var>5.34</var>(ICD-10), must be used to report medical diagnoses and hospital inpatient procedures <br />
         		<a id="pl.6.1"></a><var>6.1</var>when required by the United States Department of Health and Human Services for federal <br />
         		<a id="pl.6.2"></a><var>6.2</var>programs. The commissioner must replace the codes from the International Classification <br />
         		<a id="pl.6.3"></a><var>6.3</var>of Diseases, Ninth Edition, Clinical Modification/Procedure Coding System (ICD-9), with <br />
         		<a id="pl.6.4"></a><var>6.4</var>equivalent ICD-10 codes wherever the ICD-9 codes appear in rules adopted under this <br />
         		<a id="pl.6.5"></a><var>6.5</var>chapter. The commissioner must use the General Equivalence Mappings established by <br />
         		<a id="pl.6.6"></a><var>6.6</var>the Centers for Medicare and Medicaid Services to replace the ICD-9 diagnostic codes <br />
         		<a id="pl.6.7"></a><var>6.7</var>with ICD-10 codes in the rules.<br />
         		<a id="pl.6.8"></a><var>6.8</var>(c) The commissioner shall amend rules adopted under this chapter as necessary <br />
         		<a id="pl.6.9"></a><var>6.9</var>to implement the ICD-10 coding system in paragraph (b). The amendments shall be <br />
         		<a id="pl.6.10"></a><var>6.10</var>adopted by giving notice in the State Register according to the procedures in section <br />
         		<a id="pl.6.11"></a><var>6.11</var>14.386, paragraph (a). The amended rules are not subject to expiration under section <br />
         		<a id="pl.6.12"></a><var>6.12</var>14.386, paragraph (b).<br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.6.13"></a><var>6.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2012, section 176.136, subdivision 1a, is amended to read:<br />
         		<a id="pl.6.14"></a><var>6.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Relative value fee schedule.</b> (a) The liability of an employer for <br />
         		<a id="pl.6.15"></a><var>6.15</var>services included in the medical fee schedule is limited to the maximum fee allowed <br />
         		<a id="pl.6.16"></a><var>6.16</var>by the schedule in effect on the date of the medical service, or the provider's actual <br />
         		<a id="pl.6.17"></a><var>6.17</var>fee, whichever is lower. The commissioner shall adopt permanent rules regulating fees <br />
         		<a id="pl.6.18"></a><var>6.18</var>allowable for medical, chiropractic, podiatric, surgical, and other health care provider <br />
         		<a id="pl.6.19"></a><var>6.19</var>treatment or service, including those provided to hospital outpatients, by implementing <br />
         		<a id="pl.6.20"></a><var>6.20</var>a relative value fee schedule. The commissioner may adopt by reference, according to <br />
         		<a id="pl.6.21"></a><var>6.21</var>the procedures in paragraph ~~(h)~~ (d), clause (2), the relative value fee schedule tables <br />
         		<a id="pl.6.22"></a><var>6.22</var>adopted for the federal Medicare program. The relative value fee schedule must contain <br />
         		<a id="pl.6.23"></a><var>6.23</var>reasonable classifications including, but not limited to, classifications that differentiate <br />
         		<a id="pl.6.24"></a><var>6.24</var>among health care provider disciplines. The conversion factors for the original relative <br />
         		<a id="pl.6.25"></a><var>6.25</var>value fee schedule must reasonably reflect a 15 percent overall reduction from the medical <br />
         		<a id="pl.6.26"></a><var>6.26</var>fee schedule most recently in effect. The reduction need not be applied equally to all <br />
         		<a id="pl.6.27"></a><var>6.27</var>treatment or services, but must represent a gross 15 percent reduction.<br />
         		<a id="pl.6.28"></a><var>6.28</var>(b) Effective October 1, 2005, the commissioner shall remove all scaling factors <br />
         		<a id="pl.6.29"></a><var>6.29</var>from the relative value units and establish four separate conversion factors ~~according to~~ <br />
         		<a id="pl.6.30"></a><var>6.30</var>~~paragraphs (c) and (d)~~ for each of the following parts of Minnesota Rules:<br />
         		<a id="pl.6.31"></a><var>6.31</var>(1) medical/surgical services in Minnesota Rules, part 5221.4030, as defined in part <br />
         		<a id="pl.6.32"></a><var>6.32</var>5221.0700, subpart 3, item C, subitem (2);<br />
         		<a id="pl.6.33"></a><var>6.33</var>(2) pathology and laboratory services in Minnesota Rules, part 5221.4040, as <br />
         		<a id="pl.6.34"></a><var>6.34</var>defined in part 5221.0700, subpart 3, item C, subitem (3);<br />
         		<a id="pl.7.1"></a><var>7.1</var>(3) physical medicine and rehabilitation services in Minnesota Rules, part <br />
         		<a id="pl.7.2"></a><var>7.2</var>5221.4050, as defined in part 5221.0700, subpart 3, item C, subitem (4); and<br />
         		<a id="pl.7.3"></a><var>7.3</var>(4) chiropractic services in Minnesota Rules, part 5221.4060, as defined in part <br />
         		<a id="pl.7.4"></a><var>7.4</var>5221.0700, subpart 3, item C, subitem (5).<br />
         		<a id="pl.7.5"></a><var>7.5</var>~~(c) The four conversion factors established under paragraph (b) shall be calculated~~ <br />
         		<a id="pl.7.6"></a><var>7.6</var>~~so that there is no change in each maximum fee for each service under the current fee~~ <br />
         		<a id="pl.7.7"></a><var>7.7</var>~~schedule, except as provided in paragraphs (d) and (e).~~<br />
         		<a id="pl.7.8"></a><var>7.8</var>~~(d) By October 1, 2006, the conversion factor for chiropractic services described in~~ <br />
         		<a id="pl.7.9"></a><var>7.9</var>~~paragraph (b), clause (4), shall be increased to equal 72 percent of the conversion factor~~ <br />
         		<a id="pl.7.10"></a><var>7.10</var>~~for medical/surgical services described in paragraph (b), clause (1). Beginning October 1,~~ <br />
         		<a id="pl.7.11"></a><var>7.11</var>~~2005, the increase in chiropractic conversion factor shall be phased in over two years by~~ <br />
         		<a id="pl.7.12"></a><var>7.12</var>~~approximately equal percentage point increases.~~<br />
         		<a id="pl.7.13"></a><var>7.13</var>~~(e) When adjusting the conversion factors in accordance with paragraph (g) on~~ <br />
         		<a id="pl.7.14"></a><var>7.14</var>~~October 1, 2005, and October 1, 2006, the commissioner may adjust by no less than zero,~~ <br />
         		<a id="pl.7.15"></a><var>7.15</var>~~all of the conversion factors as necessary to offset any overall increase in payments under~~ <br />
         		<a id="pl.7.16"></a><var>7.16</var>~~the fee schedule resulting from the increase in the chiropractic conversion factor.~~<br />
         		<a id="pl.7.17"></a><var>7.17</var>~~(f) The commissioner shall give notice of the relative value units and conversion~~ <br />
         		<a id="pl.7.18"></a><var>7.18</var>~~factors established under paragraphs (b), (c), and (d) according to the procedures in section~~ <br />
         		<a id="pl.7.19"></a><var>7.19</var><statute_ref>~~14.386, paragraph (a)~~</statute_ref>~~. The relative value units and conversion factors established under~~ <br />
         		<a id="pl.7.20"></a><var>7.20</var>~~paragraphs (b), (c), and (d) are not subject to expiration under section~~ 
         <statute_ref>~~14.386, paragraph (b)~~</statute_ref>~~.~~<br />
         		<a id="pl.7.21"></a><var>7.21</var>~~(g)~~ (c) The conversion factors shall be adjusted as follows:<br />
         		<a id="pl.7.22"></a><var>7.22</var>(1) After permanent rules have been adopted to implement this section, the conversion <br />
         		<a id="pl.7.23"></a><var>7.23</var>factors must be adjusted annually on October 1 by no more than the percentage change <br />
         		<a id="pl.7.24"></a><var>7.24</var>computed under section 
         <statute_ref>176.645</statute_ref>, but without the annual cap provided by that section.<br />
         		<a id="pl.7.25"></a><var>7.25</var>(2) Each time the workers' compensation relative value fee schedule tables are <br />
         		<a id="pl.7.26"></a><var>7.26</var>updated under paragraph ~~(h)~~ (d), the commissioner shall adjust the conversion factors so <br />
         		<a id="pl.7.27"></a><var>7.27</var>that, for services in both fee schedules, there is no difference between the overall payment <br />
         		<a id="pl.7.28"></a><var>7.28</var>in each category of service listed in paragraph (b) under the new schedule and the overall <br />
         		<a id="pl.7.29"></a><var>7.29</var>payment for that category under the workers' compensation fee schedule most recently <br />
         		<a id="pl.7.30"></a><var>7.30</var>in effect. This adjustment must be made before making any additional adjustment under <br />
         		<a id="pl.7.31"></a><var>7.31</var>clause (1).<br />
         		<a id="pl.7.32"></a><var>7.32</var>~~(h)~~ (d) The commissioner shall give notice of the adjusted conversion factors and <br />
         		<a id="pl.7.33"></a><var>7.33</var>updates to the relative value fee schedule as follows:<br />
         		<a id="pl.7.34"></a><var>7.34</var>(1) The commissioner shall annually give notice in the State Register of the adjusted <br />
         		<a id="pl.7.35"></a><var>7.35</var>conversion factors and any amendments to rules to implement Medicare relative value <br />
         		<a id="pl.7.36"></a><var>7.36</var>tables incorporated by reference under this subdivision. The notices of the adjusted <br />
         		<a id="pl.8.1"></a><var>8.1</var>conversion factors and amended rules to implement the relative value tables are subject <br />
         		<a id="pl.8.2"></a><var>8.2</var>to the requirements of section 
         <statute_ref>14.386, paragraph (a)</statute_ref>. The annual adjustments to the <br />
         		<a id="pl.8.3"></a><var>8.3</var>conversion factors and the medical fee schedules adopted under this section, including all <br />
         		<a id="pl.8.4"></a><var>8.4</var>previous fee schedules, are not subject to expiration under section 
         <statute_ref>14.386, paragraph (b)</statute_ref>.<br />
         		<a id="pl.8.5"></a><var>8.5</var>(2) The commissioner shall periodically, but at least once every three years, update <br />
         		<a id="pl.8.6"></a><var>8.6</var>the workers' compensation relative value tables by incorporating by reference the relative <br />
         		<a id="pl.8.7"></a><var>8.7</var>value tables in the national physician fee schedule relative value file established by the <br />
         		<a id="pl.8.8"></a><var>8.8</var>Centers for Medicare and Medicaid Services. The commissioner shall publish the notices <br />
         		<a id="pl.8.9"></a><var>8.9</var>of the incorporation by reference in the State Register at least 60 days before the tables <br />
         		<a id="pl.8.10"></a><var>8.10</var>are to become effective for purposes of payment under this section. Each notice of <br />
         		<a id="pl.8.11"></a><var>8.11</var>incorporation must state the date the incorporated tables will become effective and must <br />
         		<a id="pl.8.12"></a><var>8.12</var>include information on how the Medicare relative value tables may be obtained. The <br />
         		<a id="pl.8.13"></a><var>8.13</var>published notices of incorporation by reference and the incorporated tables are not rules <br />
         		<a id="pl.8.14"></a><var>8.14</var>subject to section 
         <statute_ref>14.386</statute_ref> or other provisions of chapter 14, but have the force and effect of <br />
         		<a id="pl.8.15"></a><var>8.15</var>law as of the date specified in the notices.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.8.16"></a><var>8.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2012, section 176.231, subdivision 2, is amended to read:<br />
         		<a id="pl.8.17"></a><var>8.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Initial report, written report.</b> Where subdivision 1 requires an injury <br />
         		<a id="pl.8.18"></a><var>8.18</var>to be reported within 48 hours, the employer may make an initial report by telephone~~,~~ <br />
         		<a id="pl.8.19"></a><var>8.19</var>~~telegraph,~~ or personal notice, and file a written report of the injury within seven days from <br />
         		<a id="pl.8.20"></a><var>8.20</var>its occurrence or within such time as the commissioner of labor and industry designates. <br />
         		<a id="pl.8.21"></a><var>8.21</var>All written reports of injuries required by subdivision 1 shall include the date of injury. <br />
         		<a id="pl.8.22"></a><var>8.22</var>The reports shall be on a form designed by the commissioner, with a clear copy suitable <br />
         		<a id="pl.8.23"></a><var>8.23</var>for imaging to the commissioner, one copy to the insurer, and one copy to the employee.<br />
         		<a id="pl.8.24"></a><var>8.24</var>The employer must give the employee the "Minnesota Workers' Compensation <br />
         		<a id="pl.8.25"></a><var>8.25</var>System Employee Information Sheet" at the time the employee is given a copy of the <br />
         		<a id="pl.8.26"></a><var>8.26</var>first report of injury.<br />
         		<a id="pl.8.27"></a><var>8.27</var>If an insurer or self-insurer repeatedly fails to pay benefits within three days of the <br />
         		<a id="pl.8.28"></a><var>8.28</var>due date, pursuant to section 
         <statute_ref>176.221</statute_ref>, the insurer or self-insurer shall be ordered by the <br />
         		<a id="pl.8.29"></a><var>8.29</var>commissioner to explain, in person, the failure to pay benefits due in a reasonable time. <br />
         		<a id="pl.8.30"></a><var>8.30</var>If prompt payments are not thereafter made, the commissioner shall refer the insurer or <br />
         		<a id="pl.8.31"></a><var>8.31</var>self-insurer to the commissioner of commerce for action pursuant to section 
         <statute_ref>176.225, <br />
            		<a id="pl.8.32"></a><var>8.32</var>subdivision 4
         </statute_ref>.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.8.33"></a><var>8.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2012, section 176.305, subdivision 1a, is amended to read:<br />
         		<a id="pl.9.1"></a><var>9.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Settlement and pretrial conferences; summary decision.</b> The chief <br />
         		<a id="pl.9.2"></a><var>9.2</var>administrative law judge shall promptly assign the petition to a compensation judge under <br />
         		<a id="pl.9.3"></a><var>9.3</var>section 
         <statute_ref>176.307</statute_ref>, and shall schedule a settlement conference before a compensation judge, <br />
         		<a id="pl.9.4"></a><var>9.4</var>to be held no later than 180 days after a claim petition was filed, or 45 days after a petition <br />
         		<a id="pl.9.5"></a><var>9.5</var>to discontinue, objection to discontinuance, or request for formal hearing was filed.<br />
         		<a id="pl.9.6"></a><var>9.6</var>All parties must appear at the settlement conference, either personally or by <br />
         		<a id="pl.9.7"></a><var>9.7</var>representative, must be prepared to discuss settlement of all issues, and must be prepared <br />
         		<a id="pl.9.8"></a><var>9.8</var>to discuss or present the information required by the joint rules of the division and the <br />
         		<a id="pl.9.9"></a><var>9.9</var>office. If a representative appears on behalf of a party, the representative must have <br />
         		<a id="pl.9.10"></a><var>9.10</var>authority to fully settle the matter. The parties shall serve and file a pretrial statement no <br />
         		<a id="pl.9.11"></a><var>9.11</var>fewer than five days before the settlement conference.<br />
         		<a id="pl.9.12"></a><var>9.12</var>If settlement is not reached, the chief administrative law judge shall schedule a <br />
         		<a id="pl.9.13"></a><var>9.13</var>hearing to be held within 90 days from the scheduled settlement conference. However, <br />
         		<a id="pl.9.14"></a><var>9.14</var>the hearing must be held earlier than 90 days from the scheduled settlement conference if <br />
         		<a id="pl.9.15"></a><var>9.15</var>this chapter requires an expedited hearing to be held at an earlier date. The hearing must <br />
         		<a id="pl.9.16"></a><var>9.16</var>be held before a compensation judge other than the compensation judge who conducted <br />
         		<a id="pl.9.17"></a><var>9.17</var>the settlement conference. The compensation judge assigned to hold the hearing may <br />
         		<a id="pl.9.18"></a><var>9.18</var>choose to conduct a pretrial conference to clarify the issues and evidence that will be <br />
         		<a id="pl.9.19"></a><var>9.19</var>presented at the hearing.<br />
         		<a id="pl.9.20"></a><var>9.20</var>Cancellations and continuations of proceedings are disfavored but may be granted <br />
         		<a id="pl.9.21"></a><var>9.21</var>upon the showing of good cause under section 
         <statute_ref>176.341, subdivision 4</statute_ref>.<br />
         		<a id="pl.9.22"></a><var>9.22</var>The compensation judge conducting the settlement conference may require the <br />
         		<a id="pl.9.23"></a><var>9.23</var>parties to present copies of all documentary evidence not previously filed and a summary <br />
         		<a id="pl.9.24"></a><var>9.24</var>of the evidence they will present at a formal hearing. If appropriate, a written summary <br />
         		<a id="pl.9.25"></a><var>9.25</var>decision shall be issued within ten days after the conference stating the issues and a <br />
         		<a id="pl.9.26"></a><var>9.26</var>determination of each issue. If a party fails to appear at the conference, all issues may <br />
         		<a id="pl.9.27"></a><var>9.27</var>be determined contrary to the absent party's interest, provided the party in attendance <br />
         		<a id="pl.9.28"></a><var>9.28</var>presents a prima facie case.<br />
         		<a id="pl.9.29"></a><var>9.29</var>The summary decision is final unless a written request for a formal hearing is served <br />
         		<a id="pl.9.30"></a><var>9.30</var>on all parties and filed with the commissioner within 30 days after the date of service <br />
         		<a id="pl.9.31"></a><var>9.31</var>and filing of the summary decision. Within ten days after receipt of the request, the <br />
         		<a id="pl.9.32"></a><var>9.32</var>commissioner shall certify the matter to the office for a de novo hearing. ~~In proceedings~~ <br />
         		<a id="pl.9.33"></a><var>9.33</var>~~under section~~ 
         <statute_ref>~~176.2615~~</statute_ref>~~, the summary decision is final and not subject to appeal or de~~ <br />
         		<a id="pl.9.34"></a><var>9.34</var>~~novo proceedings.~~<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.9.35"></a><var>9.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b> REPEALER.</b><br />
         		<a id="pl.10.1"></a><var>10.1</var>Minnesota Statutes 2012, sections 175.006, subdivision 1; 175.08; 175.14; 175.26; <br />
         		<a id="pl.10.2"></a><var>10.2</var>176.1311; 176.136, subdivision 3; 176.2615; and 176.641, are repealed.<br />
         		
      </div>