1.1                          A bill for an act
  1.2             relating to workers' compensation; providing for 
  1.3             arbitration of disputes regarding apportionment of 
  1.4             liability when an insurer has agreed to pay benefits 
  1.5             under a temporary order; amending the rate of interest 
  1.6             payable upon reimbursements of certain payments; 
  1.7             amending Minnesota Statutes 1996, section 176.191, 
  1.8             subdivisions 1, 3, 4, and 5. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 176.191, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [ORDER; EMPLOYER, INSURER, OR SPECIAL 
  1.13  COMPENSATION FUND PAYMENT.] Where compensation benefits are 
  1.14  payable under this chapter, and a dispute exists between two or 
  1.15  more employers or two or more insurers or the special 
  1.16  compensation fund as to which is liable for payment, the 
  1.17  commissioner, compensation judge, or court of appeals upon 
  1.18  appeal shall direct that one or more of the employers or 
  1.19  insurers or the special compensation fund make payment of the 
  1.20  benefits pending a determination of which has liability.  The 
  1.21  special compensation fund may be ordered to make payment only if 
  1.22  it has been made a party to the claim because the petitioner has 
  1.23  alleged that one or more of the employers is uninsured for 
  1.24  workers' compensation under section 176.183.  A temporary order 
  1.25  may be issued under this subdivision whether or not the 
  1.26  employers, insurers, or special compensation fund agree to pay 
  1.27  under the order.  
  2.1      When liability has been determined, the party held liable 
  2.2   for the benefits shall be ordered to reimburse any other party 
  2.3   for payments which the latter has made, including interest at 
  2.4   the rate ~~of 12 percent a year~~ provided in section 549.09, 
  2.5   subdivision 1, paragraph (c).  The claimant shall also be 
  2.6   awarded a reasonable attorney fee, to be paid by the party held 
  2.7   liable for the benefits. 
  2.8      An order directing payment of benefits pending a 
  2.9   determination of liability may not be used as evidence before a 
  2.10  compensation judge, the workers' compensation court of appeals, 
  2.11  or court in which the dispute is pending. 
  2.12     Sec. 2.  Minnesota Statutes 1996, section 176.191, 
  2.13  subdivision 3, is amended to read: 
  2.14     Subd. 3.  [INSURER PAYMENT.] If a dispute exists as to 
  2.15  whether an employee's injury is compensable under this chapter 
  2.16  and the employee is otherwise covered by an insurer pursuant to 
  2.17  chapters 62A, 62C and 62D, that insurer shall pay any medical 
  2.18  costs incurred by the employee for the injury up to the limits 
  2.19  of the applicable coverage and shall make any disability 
  2.20  payments otherwise payable by that insurer in the absence of or 
  2.21  in addition to workers' compensation liability.  If the injury 
  2.22  is subsequently determined to be compensable pursuant to this 
  2.23  chapter, the workers' compensation insurer shall be ordered to 
  2.24  reimburse the insurer that made the payments for all payments 
  2.25  made under this subdivision by the insurer, including interest 
  2.26  at ~~a~~ the rate ~~of 12 percent a year~~ provided in section 549.09, 
  2.27  subdivision 1, paragraph (c).  If a payment pursuant to this 
  2.28  subdivision exceeds the reasonable value as permitted by 
  2.29  sections 176.135 and 176.136, the provider shall reimburse the 
  2.30  workers' compensation insurer for all the excess as provided by 
  2.31  rules promulgated by the commissioner. 
  2.32     Sec. 3.  Minnesota Statutes 1996, section 176.191, 
  2.33  subdivision 4, is amended to read: 
  2.34     Subd. 4.  [PROGRAM PAYMENTS.] If the employee's medical 
  2.35  expenses for a personal injury are paid pursuant to any program 
  2.36  administered by the commissioner of human services, or if the 
  3.1   employee or spouse or dependents living with the employee 
  3.2   receive subsistence or other payments pursuant to such a 
  3.3   program, and it is subsequently determined that the injury is 
  3.4   compensable pursuant to this chapter, the workers' compensation 
  3.5   insurer shall reimburse the commissioner of human services for 
  3.6   the payments made, including interest at ~~a~~ the rate ~~of 12~~ 
  3.7   ~~percent a year~~ provided in section 549.09, subdivision 1, 
  3.8   paragraph (c). 
  3.9      Amounts paid to an injured employee or spouse or dependents 
  3.10  living with the employee pursuant to such a program and 
  3.11  attributable to the personal injury shall be deducted from any 
  3.12  settlement or award of compensation or benefits under this 
  3.13  chapter, including, but not limited to, temporary and permanent 
  3.14  disability benefits.  
  3.15     The insurer shall attempt, with due diligence, to ascertain 
  3.16  whether payments have been made to an injured employee pursuant 
  3.17  to such a program prior to any settlement or issuance of a 
  3.18  binding award and shall notify the department of human services, 
  3.19  benefit recovery section, when such payments have been made.  An 
  3.20  employee who has received public assistance payments shall 
  3.21  notify the department of human services, benefit recovery 
  3.22  section, of its potential intervention claim prior to making or 
  3.23  settling a claim for benefits under this chapter.  Notice served 
  3.24  on local human services agencies is not sufficient to meet the 
  3.25  notification requirement in this subdivision. 
  3.26     Sec. 4.  Minnesota Statutes 1996, section 176.191, 
  3.27  subdivision 5, is amended to read: 
  3.28     Subd. 5.  [ARBITRATION.] ~~Where a dispute exists between an~~ 
  3.29  ~~employer, insurer, the special compensation fund, or the~~ 
  3.30  ~~workers' compensation reinsurance association, regarding~~ 
  3.31  ~~apportionment of liability for benefits payable under this~~ 
  3.32  ~~chapter, and the requesting party has expended over $10,000 in~~ 
  3.33  ~~medical or 52 weeks worth of indemnity benefits and made the~~ 
  3.34  ~~request within one year thereafter, a party may require~~ 
  3.35  ~~submission of the dispute as to apportionment of liability among~~ 
  3.36  ~~employers and insurers to binding arbitration.~~ A dispute 
  4.1   regarding apportionment of liability for benefits between an 
  4.2   employer, insurer, the special compensation fund, or the 
  4.3   workers' compensation reinsurance association shall be submitted 
  4.4   to binding arbitration if the party seeking binding arbitration 
  4.5   has:  (1) requested arbitration within one year of agreeing to 
  4.6   pay benefits under a temporary order under subdivision 1; (2) 
  4.7   expended over $10,000 in medical benefits; or (3) expended over 
  4.8   52 weeks worth of indemnity benefits.  The decision of the 
  4.9   arbitrator shall be conclusive on the issue of apportionment 
  4.10  among employers and insurers.  Consent of the employee is not 
  4.11  required for submission of a dispute to arbitration pursuant to 
  4.12  this section and the employee is not bound by the results of the 
  4.13  arbitration.  An arbitration award shall not be admissible in 
  4.14  any other proceeding under this chapter.  Notice of the 
  4.15  proceeding shall be given to the employee.  
  4.16     The employee, or any person with material information to 
  4.17  the facts to be arbitrated, shall attend the arbitration 
  4.18  proceeding if any party to the proceeding deems it necessary. 
  4.19  Nothing said by an employee in connection with any arbitration 
  4.20  proceeding may be used against the employee in any other 
  4.21  proceeding under this chapter.  Reasonable expenses of meals, 
  4.22  lost wages, and travel of the employee or witnesses in attending 
  4.23  shall be reimbursed on a pro rata basis.  Arbitration costs 
  4.24  shall be paid by the parties, except the employee, on a pro rata 
  4.25  basis.