1.1 	A bill for an act
1.2 	relating to workers' compensation; adopting
1.3 	recommendations of the Workers' Compensation Advisory
1.4 	Council; amending Minnesota Statutes 2004, sections
1.5 	176.011, subdivision 9; 176.041, by adding a
1.6 	subdivision; 176.081, subdivision 1; 176.092,
1.7 	subdivision 1a; 176.102, subdivision 3a; 176.106,
1.8 	subdivision 1; 176.129, subdivisions 1b, 2a, 13;
1.9 	176.135, subdivisions 1, 7; 176.1351, subdivision 5;
1.10 	176.1812, subdivision 1; 176.185, subdivisions 1, 7,
1.11 	by adding a subdivision; 176.231, subdivision 5;
1.12 	176.238, subdivision 10; 176.391, subdivision 2;
1.13 	repealing Minnesota Statutes 2004, section 176.1812,
1.14 	subdivision 6.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	Section 1. Minnesota Statutes 2004, section 176.011,
1.17 	subdivision 9, is amended to read:
1.18 		Subd. 9.Employee.  "Employee" means any person who
1.19 	performs services for another for hire including the following:
1.20 	(1) an alien;
1.21 	(2) a minor;
1.22 	(3) a sheriff, deputy sheriff, constable, marshal, police
1.23 	officer, firefighter, county highway engineer, and peace officer
1.24 	while engaged in the enforcement of peace or in the pursuit or
1.25 	capture of a person charged with or suspected of crime;
1.26 	(4) a person requested or commanded to aid an officer in
1.27 	arresting or retaking a person who has escaped from lawful
1.28 	custody, or in executing legal process, in which cases, for
1.29 	purposes of calculating compensation under this chapter, the
1.30 	daily wage of the person shall be the prevailing wage for
2.1 	similar services performed by paid employees;
2.2 	(5) a county assessor;
2.3 	(6) an elected or appointed official of the state, or of a
2.4 	county, city, town, school district, or governmental subdivision
2.5 	in the state.  An officer of a political subdivision elected or
2.6 	appointed for a regular term of office, or to complete the
2.7 	unexpired portion of a regular term, shall be included only
2.8 	after the governing body of the political subdivision has
2.9 	adopted an ordinance or resolution to that effect;
2.10 	(7) an executive officer of a corporation, except those
2.11 	executive officers excluded by section 176.041;
2.12 	(8) a voluntary uncompensated worker, other than an inmate,
2.13 	rendering services in state institutions under the commissioners
2.14 	of human services and corrections similar to those of officers
2.15 	and employees of the institutions, and whose services have been
2.16 	accepted or contracted for by the commissioner of human services
2.17 	or corrections as authorized by law.  In the event of injury or
2.18 	death of the worker, the daily wage of the worker, for the
2.19 	purpose of calculating compensation under this chapter, shall be
2.20 	the usual wage paid at the time of the injury or death for
2.21 	similar services in institutions where the services are
2.22 	performed by paid employees;
2.23 	(9) a voluntary uncompensated worker engaged ~~in peace time~~
2.24 	~~in the civil defense program when ordered to training or other~~
2.25 	~~duty by~~ in emergency management as defined in section 12.03,
2.26 	subdivision 4, who is:
2.27 	(i) registered with the state or any political subdivision
2.28 	of it, according to the procedures set forth in the state or
2.29 	political subdivision emergency operations plan; and 
2.30 	(ii) acting under the direction and control of, and within
2.31 	the scope of duties approved by, the state or political
2.32 	subdivision.
2.33 	The daily wage of the worker, for the purpose of calculating
2.34 	compensation under this chapter, shall be the usual wage paid at
2.35 	the time of the injury or death for similar services performed
2.36 	by paid employees;
3.1 	(10) a voluntary uncompensated worker participating in a
3.2 	program established by a local social services agency.  For
3.3 	purposes of this clause, "local social services agency" means
3.4 	any agency established under section 393.01.  In the event of
3.5 	injury or death of the worker, the wage of the worker, for the
3.6 	purpose of calculating compensation under this chapter, shall be
3.7 	the usual wage paid in the county at the time of the injury or
3.8 	death for similar services performed by paid employees working a
3.9 	normal day and week;
3.10 	(11) a voluntary uncompensated worker accepted by the
3.11 	commissioner of natural resources who is rendering services as a
3.12 	volunteer pursuant to section 84.089.  The daily wage of the
3.13 	worker for the purpose of calculating compensation under this
3.14 	chapter, shall be the usual wage paid at the time of injury or
3.15 	death for similar services performed by paid employees;
3.16 	(12) a voluntary uncompensated worker in the building and
3.17 	construction industry who renders services for joint
3.18 	labor-management nonprofit community service projects.  The
3.19 	daily wage of the worker for the purpose of calculating
3.20 	compensation under this chapter shall be the usual wage paid at
3.21 	the time of injury or death for similar services performed by
3.22 	paid employees;
3.23 	(13) a member of the military forces, as defined in section
3.24 	190.05, while in state active service, as defined in section
3.25 	190.05, subdivision 5a.  The daily wage of the member for the
3.26 	purpose of calculating compensation under this chapter shall be
3.27 	based on the member's usual earnings in civil life.  If there is
3.28 	no evidence of previous occupation or earning, the trier of fact
3.29 	shall consider the member's earnings as a member of the military
3.30 	forces;
3.31 	(14) a voluntary uncompensated worker, accepted by the
3.32 	director of the Minnesota Historical Society, rendering services
3.33 	as a volunteer, pursuant to chapter 138.  The daily wage of the
3.34 	worker, for the purposes of calculating compensation under this
3.35 	chapter, shall be the usual wage paid at the time of injury or
3.36 	death for similar services performed by paid employees;
4.1 	(15) a voluntary uncompensated worker, other than a
4.2 	student, who renders services at the Minnesota State Academy for
4.3 	the Deaf or the Minnesota State Academy for the Blind, and whose
4.4 	services have been accepted or contracted for by the
4.5 	commissioner of education, as authorized by law.  In the event
4.6 	of injury or death of the worker, the daily wage of the worker,
4.7 	for the purpose of calculating compensation under this chapter,
4.8 	shall be the usual wage paid at the time of the injury or death
4.9 	for similar services performed in institutions by paid
4.10 	employees;
4.11 	(16) a voluntary uncompensated worker, other than a
4.12 	resident of the veterans home, who renders services at a
4.13 	Minnesota veterans home, and whose services have been accepted
4.14 	or contracted for by the commissioner of veterans affairs, as
4.15 	authorized by law.  In the event of injury or death of the
4.16 	worker, the daily wage of the worker, for the purpose of
4.17 	calculating compensation under this chapter, shall be the usual
4.18 	wage paid at the time of the injury or death for similar
4.19 	services performed in institutions by paid employees;
4.20 	(17) a worker who renders in-home attendant care services
4.21 	to a physically handicapped person, and who is paid directly by
4.22 	the commissioner of human services for these services, shall be
4.23 	an employee of the state within the meaning of this subdivision,
4.24 	but for no other purpose;
4.25 	(18) students enrolled in and regularly attending the
4.26 	Medical School of the University of Minnesota in the graduate
4.27 	school program or the postgraduate program.  The students shall
4.28 	not be considered employees for any other purpose.  In the event
4.29 	of the student's injury or death, the weekly wage of the student
4.30 	for the purpose of calculating compensation under this chapter,
4.31 	shall be the annualized educational stipend awarded to the
4.32 	student, divided by 52 weeks.  The institution in which the
4.33 	student is enrolled shall be considered the "employer" for the
4.34 	limited purpose of determining responsibility for paying
4.35 	benefits under this chapter;
4.36 	(19) a faculty member of the University of Minnesota
5.1 	employed for an academic year is also an employee for the period
5.2 	between that academic year and the succeeding academic year if:
5.3 	(a) the member has a contract or reasonable assurance of a
5.4 	contract from the University of Minnesota for the succeeding
5.5 	academic year; and
5.6 	(b) the personal injury for which compensation is sought
5.7 	arises out of and in the course of activities related to the
5.8 	faculty member's employment by the University of Minnesota;
5.9 	(20) a worker who performs volunteer ambulance driver or
5.10 	attendant services is an employee of the political subdivision,
5.11 	nonprofit hospital, nonprofit corporation, or other entity for
5.12 	which the worker performs the services.  The daily wage of the
5.13 	worker for the purpose of calculating compensation under this
5.14 	chapter shall be the usual wage paid at the time of injury or
5.15 	death for similar services performed by paid employees;
5.16 	(21) a voluntary uncompensated worker, accepted by the
5.17 	commissioner of administration, rendering services as a
5.18 	volunteer at the Department of Administration.  In the event of
5.19 	injury or death of the worker, the daily wage of the worker, for
5.20 	the purpose of calculating compensation under this chapter,
5.21 	shall be the usual wage paid at the time of the injury or death
5.22 	for similar services performed in institutions by paid
5.23 	employees;
5.24 	(22) a voluntary uncompensated worker rendering service
5.25 	directly to the Pollution Control Agency.  The daily wage of the
5.26 	worker for the purpose of calculating compensation payable under
5.27 	this chapter is the usual going wage paid at the time of injury
5.28 	or death for similar services if the services are performed by
5.29 	paid employees;
5.30 	(23) a voluntary uncompensated worker while volunteering
5.31 	services as a first responder or as a member of a law
5.32 	enforcement assistance organization while acting under the
5.33 	supervision and authority of a political subdivision.  The daily
5.34 	wage of the worker for the purpose of calculating compensation
5.35 	payable under this chapter is the usual going wage paid at the
5.36 	time of injury or death for similar services if the services are
6.1 	performed by paid employees; and
6.2 	(24) a voluntary uncompensated member of the civil air
6.3 	patrol rendering service on the request and under the authority
6.4 	of the state or any of its political subdivisions.  The daily
6.5 	wage of the member for the purposes of calculating compensation
6.6 	payable under this chapter is the usual going wage paid at the
6.7 	time of injury or death for similar services if the services are
6.8 	performed by paid employees.
6.9 	If it is difficult to determine the daily wage as provided
6.10 	in this subdivision, the trier of fact may determine the wage
6.11 	upon which the compensation is payable.
6.12 	
EFFECTIVE DATE. This section is effective for injuries
6.13 	occurring on or after the day following final enactment.

6.14 	Sec. 2. Minnesota Statutes 2004, section 176.041, is
6.15 	amended by adding a subdivision to read:
6.16 		Subd. 5b.North dakota employers. Notwithstanding the
6.17 	provisions of subdivision 4, workers' compensation benefits for
6.18 	an employee hired in North Dakota by a North Dakota employer,
6.19 	arising out of that employee's temporary work in Minnesota,
6.20 	shall not be payable under this chapter.  North Dakota workers'
6.21 	compensation law provides the exclusive remedy available to the
6.22 	injured worker.  For purposes of this subdivision, temporary
6.23 	work means work in Minnesota for a period of time not to exceed
6.24 	15 consecutive calendar days or a maximum of 240 total hours
6.25 	worked by that employee in a calendar year.
6.26 	
EFFECTIVE DATE. This section is effective for dates of
6.27 	injury occurring on or after October 1, 2005.

6.28 	Sec. 3. Minnesota Statutes 2004, section 176.081,
6.29 	subdivision 1, is amended to read:
6.30 		Subdivision 1.Limitation of fees.  (a) A fee for legal
6.31 	services of 25 percent of the first $4,000 of compensation
6.32 	awarded to the employee and 20 percent of the next $60,000 of
6.33 	compensation awarded to the employee is the maximum permissible
6.34 	fee and does not require approval by the commissioner,
6.35 	compensation judge, or any other party.  All fees, including
6.36 	fees for obtaining medical or rehabilitation benefits, must be
7.1 	calculated according to the formula under this subdivision,
7.2 	except as otherwise provided in clause (1) or (2).
7.3 	(1) The contingent attorney fee for recovery of monetary
7.4 	benefits according to the formula in this section is presumed to
7.5 	be adequate to cover recovery of medical and rehabilitation
7.6 	benefit or services concurrently in dispute.  Attorney fees for
7.7 	recovery of medical or rehabilitation benefits or services shall
7.8 	be assessed against the employer or insurer only if the attorney
7.9 	establishes that the contingent fee is inadequate to reasonably
7.10 	compensate the attorney for representing the employee in the
7.11 	medical or rehabilitation dispute.  In cases where the
7.12 	contingent fee is inadequate the employer or insurer is liable
7.13 	for attorney fees based on the formula in this subdivision or in
7.14 	clause (2).
7.15 	For the purposes of applying the formula where the employer
7.16 	or insurer is liable for attorney fees, the amount of
7.17 	compensation awarded for obtaining disputed medical and
7.18 	rehabilitation benefits under sections 176.102, 176.135, and
7.19 	176.136 shall be the dollar value of the medical or
7.20 	rehabilitation benefit awarded, where ascertainable.
7.21 	(2) The maximum attorney fee for obtaining a change of
7.22 	doctor or qualified rehabilitation consultant, or any other
7.23 	disputed medical or rehabilitation benefit for which a dollar
7.24 	value is not reasonably ascertainable, is the amount charged in
7.25 	hourly fees for the representation or $500, whichever is less,
7.26 	to be paid by the employer or insurer.
7.27 	(3) The fees for obtaining disputed medical or
7.28 	rehabilitation benefits are included in the $13,000 limit in
7.29 	paragraph (b).  An attorney must concurrently file all
7.30 	outstanding disputed issues.  An attorney is not entitled to
7.31 	attorney fees for representation in any issue which could
7.32 	reasonably have been addressed during the pendency of other
7.33 	issues for the same injury.
7.34 	(b) All fees for legal services related to the same injury
7.35 	are cumulative and may not exceed $13,000.  If multiple injuries
7.36 	are the subject of a dispute, the commissioner, compensation
8.1 	judge, or court of appeals shall specify the attorney fee
8.2 	attributable to each injury.
8.3 	(c) If the employer or the insurer or the defendant is
8.4 	given written notice of claims for legal services or
8.5 	disbursements, the claim shall be a lien against the amount paid
8.6 	or payable as compensation.  Subject to the foregoing maximum
8.7 	amount for attorney fees, up to 25 percent of the first $4,000
8.8 	of periodic compensation awarded to the employee and 20 percent
8.9 	of the next $60,000 of periodic compensation awarded to the
8.10 	employee may be withheld from the periodic payments for attorney
8.11 	fees or disbursements if the payor of the funds clearly
8.12 	indicates on the check or draft issued to the employee for
8.13 	payment the purpose of the withholding, the name of the
8.14 	attorney, the amount withheld, and the gross amount of the
8.15 	compensation payment before withholding.  In no case shall fees
8.16 	be calculated on the basis of any undisputed portion of
8.17 	compensation awards.  Allowable fees under this chapter shall be
8.18 	based solely upon genuinely disputed claims or portions of
8.19 	claims, including disputes related to the payment of
8.20 	rehabilitation benefits or to other aspects of a rehabilitation
8.21 	plan.  The existence of a dispute is dependent upon a
8.22 	disagreement after the employer or insurer has had adequate time
8.23 	and information to take a position on liability.  Neither the
8.24 	holding of a hearing nor the filing of an application for a
8.25 	hearing alone may determine the existence of a dispute.  Except
8.26 	where the employee is represented by an attorney in other
8.27 	litigation pending at the department or at the Office of
8.28 	Administrative Hearings, a fee may not be charged after June 1,
8.29 	1996, for services with respect to a medical or rehabilitation
8.30 	issue arising under section 176.102, 176.135, or 176.136
8.31 	performed before the employee has consulted with the department
8.32 	and the department certifies that there is a dispute and that it
8.33 	has tried to resolve the dispute.
8.34 	(d) An attorney who is claiming legal fees for representing
8.35 	an employee in a workers' compensation matter shall file a
8.36 	statement of attorney fees with the commissioner, compensation
9.1 	judge before whom the matter was heard, or Workers' Compensation
9.2 	Court of Appeals on cases before the court.  A copy of the
9.3 	signed retainer agreement shall also be filed.  The employee and
9.4 	insurer shall receive a copy of the statement.  The statement
9.5 	shall be on a form prescribed by the commissioner and shall
9.6 	report the number of hours spent on the case.
9.7 	(e) Employers and insurers may not pay attorney fees or
9.8 	wages for legal services of more than $13,000 per case.
9.9 	(f) ~~Each insurer and self-insured employer shall file~~
9.10 	~~annual statements with the commissioner detailing the total~~
9.11 	~~amount of legal fees and other legal costs incurred by the~~
9.12 	~~insurer or employer during the year.  The statement shall~~
9.13 	~~include the amount paid for outside and in-house counsel,~~
9.14 	~~deposition and other witness fees, and all other costs relating~~
9.15 	~~to litigation.~~
9.16 	~~(g)~~ An attorney must file a statement of attorney fees
9.17 	within 12 months of the date the attorney has submitted the
9.18 	written notice specified in paragraph (c).  If the attorney has
9.19 	not filed a statement of attorney fees within the 12 months, the
9.20 	attorney must send a renewed notice of lien to the insurer.  If
9.21 	12 months have elapsed since the last notice of lien has been
9.22 	received by the insurer and no statement of attorney fees has
9.23 	been filed, the insurer must release the withheld money to the
9.24 	employee, except that before releasing the money to the
9.25 	employee, the insurer must give the attorney 30 days' written
9.26 	notice of the pending release.  The insurer must not release the
9.27 	money if the attorney files a statement of attorney fees within
9.28 	the 30 days.
9.29 	
EFFECTIVE DATE. This section is effective the day
9.30 	following final enactment.

9.31 	Sec. 4. Minnesota Statutes 2004, section 176.092,
9.32 	subdivision 1a, is amended to read:
9.33 		Subd. 1a.Parent as guardian.  A parent is presumed to be
9.34 	the guardian of the minor employee for purposes of this
9.35 	section.  Where the parents of the minor employee are divorced,
9.36 	either parent with legal custody may be considered the guardian
10.1 	for purposes of this section.  Notwithstanding subdivision 1,
10.2 	where the employee receives or is eligible for a lump sum
10.3 	payment of permanent total disability benefits, supplementary
10.4 	benefits, or permanent partial disability benefits totaling more
10.5 	than $3,000 or if the employee receives or is offered a
10.6 	settlement that exceeds five times the statewide average weekly
10.7 	wage, the compensation judge shall review such cases to
10.8 	determine whether benefits should be paid in a lump sum or
10.9 	through an annuity.
10.10 	
EFFECTIVE DATE. This section is effective the day
10.11 	following final enactment.

10.12 	Sec. 5. Minnesota Statutes 2004, section 176.102,
10.13 	subdivision 3a, is amended to read:
10.14 		Subd. 3a.Disciplinary actions.  The panel has authority
10.15 	to discipline qualified rehabilitation consultants and vendors
10.16 	and may impose a penalty of up to $3,000 per violation, payable
10.17 	to the commissioner for deposit in the ~~special compensation fund~~ 
10.18 	assigned risk safety account, and may suspend or revoke
10.19 	certification.  Complaints against registered qualified
10.20 	rehabilitation consultants and vendors shall be made to the
10.21 	commissioner who shall investigate all complaints.  If the
10.22 	investigation indicates a violation of this chapter or rules
10.23 	adopted under this chapter, the commissioner may initiate a
10.24 	contested case proceeding under the provisions of chapter 14.
10.25 	In these cases, the rehabilitation review panel shall make the
10.26 	final decision following receipt of the report of an
10.27 	administrative law judge.  The decision of the panel is
10.28 	appealable to the Workers' Compensation Court of Appeals in the
10.29 	manner provided by section 176.421.  The panel shall
10.30 	continuously study rehabilitation services and delivery, develop
10.31 	and recommend rehabilitation rules to the commissioner, and
10.32 	assist the commissioner in accomplishing public education.
10.33 	The commissioner may appoint alternates for one-year terms
10.34 	to serve as a member when a member is unavailable.  The number
10.35 	of alternates shall not exceed one labor member, one employer or
10.36 	insurer member, and one member representing medicine,
11.1 	chiropractic, or rehabilitation.
11.2 	
EFFECTIVE DATE. This section is effective the day
11.3 	following final enactment.

11.4 	Sec. 6. Minnesota Statutes 2004, section 176.106,
11.5 	subdivision 1, is amended to read:
11.6 		Subdivision 1.Scope.  All determinations by the
11.7 	commissioner or the commissioner's designee pursuant to section
11.8 	176.102, 176.103, 176.135, or 176.136 shall be in accordance
11.9 	with the procedures contained in this section. For medical
11.10 	disputes under sections 176.135 and 176.136, the commissioner or
11.11 	the commissioner's designee shall have jurisdiction to hold an
11.12 	administrative conference and issue decisions and orders under
11.13 	this section if the amount in dispute at the time the medical
11.14 	request is filed is $7,500 or less.
11.15 	
EFFECTIVE DATE. This section is effective for medical
11.16 	requests filed on or after the day following final enactment.

11.17 	Sec. 7. Minnesota Statutes 2004, section 176.129,
11.18 	subdivision 1b, is amended to read:
11.19 		Subd. 1b.Definitions.  (a) For purposes of this section,
11.20 	the terms defined in this subdivision have the meanings given
11.21 	them.
11.22 	(b) "Paid indemnity losses" means gross benefits paid for
11.23 	temporary total disability, economic recovery compensation,
11.24 	permanent partial disability, temporary partial disability,
11.25 	impairment compensation, permanent total disability, ~~vocational~~
11.26 	~~rehabilitation benefits~~ retraining compensation paid to the
11.27 	employee as provided by section 176.102, subdivision 11, or
11.28 	dependency benefits, exclusive of medical and supplementary
11.29 	benefits.  In the case of policy deductibles, paid indemnity
11.30 	losses includes all benefits paid, including the amount below
11.31 	deductible limits.
11.32 	(c) "Standard workers' compensation premium" means the data
11.33 	service organization's designated statistical reporting pure
11.34 	premium after ~~the application of experience rating plan~~
11.35 	~~adjustments~~ excluding retrospective rating plan adjustments,
11.36 	other individual risk rating plan adjustments such as schedule
12.1 	rating, premium credits for small and large deductible coverage,
12.2 	and other deviations from the data service organization's
12.3 	designated statistical reporting pure premiums and experience
12.4 	rating plan modification factors but prior to the application of
12.5 	premium discounts, policyholder dividends, other premium
12.6 	adjustments, and expense constants~~, and other deviations from~~
12.7 	~~the designated statistical reporting pure premium~~.
12.8 	
EFFECTIVE DATE. This section is effective the day
12.9 	following final enactment.

12.10 	Sec. 8. Minnesota Statutes 2004, section 176.129,
12.11 	subdivision 2a, is amended to read:
12.12 		Subd. 2a.Payments to fund.  (a) On or before April 1 of
12.13 	each year, all self-insured employers shall report paid
12.14 	indemnity losses and insurers shall report paid indemnity losses
12.15 	and standard workers' compensation premium in the form and
12.16 	manner prescribed by the commissioner.  On June 1 of each year,
12.17 	the commissioner shall determine the total amount needed to pay
12.18 	all estimated liabilities, including administrative expenses, of
12.19 	the special compensation fund for the following fiscal year.
12.20 	The commissioner shall assess this amount against self-insured
12.21 	employers and insurers.  The total amount of the assessment must
12.22 	be allocated between self-insured employers and insured
12.23 	employers based on paid indemnity losses for the preceding
12.24 	calendar year, as provided by paragraph (b).  The method of
12.25 	assessing self-insured employers must be based on paid indemnity
12.26 	losses, as provided by paragraph (c).  The method of assessing
12.27 	insured employers is based on standard workers' compensation 
12.28 	premium, ~~collectible~~ as provided by paragraph (c).  Each insurer
12.29 	shall collect the assessment through a policyholder surcharge as
12.30 	provided by paragraph (d).  On or before June 30 of each year,
12.31 	the commissioner shall provide notification to each self-insured
12.32 	employer and insurer of amounts due. Each self-insured employer
12.33 	and each insurer shall pay at least one-half of the ~~payment~~
12.34 	~~shall be made~~ amount due to the commissioner for deposit into
12.35 	the special compensation fund on or before August 1 of the same
12.36 	calendar year.  The remaining balance is due on February 1 of
13.1 	the following calendar year. Each insurer must pay the full
13.2 	amount due as stated in the commissioner's notification,
13.3 	regardless of the amount the insurer actually collects from the
13.4 	premium surcharge.
13.5 	(b) The portion of the total ~~amount~~ assessment that is
13.6 	~~collected from~~ allocated to self-insured employers is ~~equal to~~
13.7 	~~that~~ the proportion ~~of the~~ that paid indemnity losses ~~for the~~
13.8 	~~preceding calendar year, which the paid indemnity losses of~~ made
13.9 	by all self-insured employers bore to the total paid indemnity
13.10 	losses made by all self-insured employers and insured employers
13.11 	during the preceding calendar year.  The portion of the
13.12 	total ~~amount~~ assessment that is ~~collected from~~ allocated to 
13.13 	insured employers is ~~equal to that~~ the proportion ~~of the total~~ 
13.14 	that paid indemnity losses made on behalf of all insured
13.15 	employers bore to the total paid indemnity losses ~~on behalf of~~ 
13.16 	made by all self-insured employers and insured employers during
13.17 	the preceding calendar year.
13.18 	(c) The portion of the total assessment allocated to
13.19 	self-insured employers that shall be paid by each self-insured
13.20 	employer must be based upon paid indemnity losses made by that
13.21 	self-insured employer during the preceding calendar year.The
13.22 	portion of the total assessment allocated to insured employers
13.23 	that is ~~collected from~~ paid by each ~~insured employer~~ insurer 
13.24 	must be based on standard workers' compensation premium ~~written~~ 
13.25 	earned in the state by that insurer during the preceding
13.26 	calendar year.  An employer who has ceased to be self-insured
13.27 	shall continue to be liable for assessments based on paid
13.28 	indemnity losses ~~made by the employer in the preceding calendar~~
13.29 	~~year.~~arising out of injuries occurring during periods when the
13.30 	employer was self-insured, unless the self-insured employer has
13.31 	purchased a replacement policy covering those losses.  An
13.32 	insurer who assumes a self-insured employer's obligation under a
13.33 	replacement policy shall separately report and pay assessments
13.34 	based on indemnity losses paid by the insurer under the
13.35 	replacement policy.  The replacement policy may provide for
13.36 	reimbursement of the assessment to the insurer by the
14.1 	self-insured employer.
14.2 	~~(c)~~ (d) Insurers shall collect the assessments from their
14.3 	insured employers through a surcharge based on standard workers'
14.4 	compensation premium~~, as provided in paragraph (a)~~ for each
14.5 	employer.  Assessments when collected do not constitute an
14.6 	element of loss for the purpose of establishing rates for
14.7 	workers' compensation insurance but for the purpose of
14.8 	collection are treated as separate costs imposed on insured
14.9 	employers.  The premium surcharge is included in the definition
14.10 	of gross premium as defined in section 297I.01.  An insurer may
14.11 	cancel a policy for nonpayment of the premium surcharge.  The
14.12 	premium surcharge is excluded from the definition of premium
14.13 	except as otherwise provided in this paragraph.
14.14 	(e) For purposes of this section, the workers' compensation
14.15 	assigned-risk plan established under section 79.252, shall
14.16 	report and pay assessments on standard workers' compensation
14.17 	premium in the same manner as an insurer.
14.18 	
EFFECTIVE DATE. This section is effective the day
14.19 	following final enactment.

14.20 	Sec. 9. Minnesota Statutes 2004, section 176.129,
14.21 	subdivision 13, is amended to read:
14.22 		Subd. 13.Employer reports.  All employers and insurers
14.23 	shall make reports to the commissioner as required for the
14.24 	proper administration of this section and Minnesota Statutes
14.25 	1990, section 176.131, and Minnesota Statutes 1994, section
14.26 	176.132.  Employers and insurers may not be reimbursed from the
14.27 	special compensation fund for any periods unless the employer or
14.28 	insurer is up to date with all past due and currently due
14.29 	assessments, penalties, and reports to the special compensation
14.30 	fund under this section. The commissioner may allow an offset
14.31 	of the reimbursements due an employer or insurer pursuant to
14.32 	Minnesota Statutes 1990, section 176.131, and Minnesota Statutes
14.33 	1994, section 176.132, against the assessment due under the
14.34 	section.
14.35 	
EFFECTIVE DATE. This section is effective the day
14.36 	following final enactment.

15.1 	Sec. 10. Minnesota Statutes 2004, section 176.135,
15.2 	subdivision 1, is amended to read:
15.3 		Subdivision 1.Medical, psychological, chiropractic,
15.4 	podiatric, surgical, hospital.  (a) The employer shall furnish
15.5 	any medical, psychological, chiropractic, podiatric, surgical
15.6 	and hospital treatment, including nursing, medicines, medical,
15.7 	chiropractic, podiatric, and surgical supplies, crutches and
15.8 	apparatus, including artificial members, or, at the option of
15.9 	the employee, if the employer has not filed notice as
15.10 	hereinafter provided, Christian Science treatment in lieu of
15.11 	medical treatment, chiropractic medicine and medical supplies,
15.12 	as may reasonably be required at the time of the injury and any
15.13 	time thereafter to cure and relieve from the effects of the
15.14 	injury.  This treatment shall include treatments necessary to
15.15 	physical rehabilitation.
15.16 	(b) The employer shall pay for the reasonable value of
15.17 	nursing services provided by a member of the employee's family
15.18 	in cases of permanent total disability.
15.19 	(c) Exposure to rabies is an injury and an employer shall
15.20 	furnish preventative treatment to employees exposed to rabies.
15.21 	(d) The employer shall furnish replacement or repair for
15.22 	artificial members, glasses or spectacles, artificial eyes,
15.23 	podiatric orthotics, dental bridge work, dentures or artificial
15.24 	teeth, hearing aids, canes, crutches, or wheel chairs damaged by
15.25 	reason of an injury arising out of and in the course of the
15.26 	employment.  For the purpose of this paragraph, "injury"
15.27 	includes damage wholly or in part to an artificial member.  In
15.28 	case of the employer's inability or refusal seasonably to
15.29 	provide the items required to be provided under this paragraph,
15.30 	the employer is liable for the reasonable expense incurred by or
15.31 	on behalf of the employee in providing the same, including costs
15.32 	of copies of any medical records or medical reports that are in
15.33 	existence, obtained from health care providers, and that
15.34 	directly relate to the items for which payment is sought under
15.35 	this chapter, limited to the charges allowed by subdivision 7,
15.36 	and attorney fees incurred by the employee.
16.1 	(e) Both the commissioner and the compensation judges have
16.2 	authority to make determinations under this section in
16.3 	accordance with sections 176.106 and 176.305.
16.4 	(f) An employer may require that the treatment and supplies
16.5 	required to be provided by an employer by this section be
16.6 	received in whole or in part from a managed care plan certified
16.7 	under section 176.1351 except as otherwise provided by that
16.8 	section.
16.9 	(g) An employer may designate a pharmacy or network of
16.10 	pharmacies that employees must use to obtain outpatient
16.11 	prescription and nonprescription medications.  An employee is
16.12 	not required to obtain outpatient medications at a designated
16.13 	pharmacy unless the pharmacy is located within 15 miles of the
16.14 	employee's place of residence.
16.15 	(h) Notwithstanding any fees established by rule adopted
16.16 	under section 176.136, an employer may contract for the cost of
16.17 	medication provided to employees.
16.18 	
EFFECTIVE DATE. This section is effective the day
16.19 	following final enactment.

16.20 	Sec. 11. Minnesota Statutes 2004, section 176.135,
16.21 	subdivision 7, is amended to read:
16.22 		Subd. 7.Medical bills and records.  Health care
16.23 	providers shall submit to the insurer an itemized statement of
16.24 	charges on a billing form prescribed by the commissioner. A
16.25 	paper billing form is not required if the health care provider
16.26 	and insurer agree to electronic submission under section 62J.535.
16.27 	Health care providers shall also submit copies of medical
16.28 	records or reports that substantiate the nature of the charge
16.29 	and its relationship to the work injury.  Health care providers
16.30 	may charge for copies of any records or reports that are in
16.31 	existence and directly relate to the items for which payment is
16.32 	sought under this chapter.  The commissioner shall adopt a
16.33 	schedule of reasonable charges by rule.
16.34 	A health care provider shall not collect, attempt to
16.35 	collect, refer a bill for collection, or commence an action for
16.36 	collection against the employee, employer, or any other party
17.1 	until the information required by this section has been
17.2 	furnished.
17.3 	A United States government facility rendering health care
17.4 	services to veterans is not subject to the uniform billing form
17.5 	requirements of this subdivision.
17.6 	
EFFECTIVE DATE. This section is effective the day
17.7 	following final enactment.

17.8 	Sec. 12. Minnesota Statutes 2004, section 176.1351,
17.9 	subdivision 5, is amended to read:
17.10 		Subd. 5.Revocation, suspension, and refusal to certify;
17.11 	penalties and enforcement.  (a) The commissioner shall refuse to
17.12 	certify or shall revoke or suspend the certification of a
17.13 	managed care plan if the commissioner finds that the plan for
17.14 	providing medical or health care services fails to meet the
17.15 	requirements of this section, or service under the plan is not
17.16 	being provided in accordance with the terms of a certified plan.
17.17 	(b) In lieu of or in addition to suspension or revocation
17.18 	under paragraph (a), the commissioner may, for any noncompliance
17.19 	with the managed care plan as certified or any violation of a
17.20 	statute or rule applicable to a managed care plan, assess an
17.21 	administrative penalty payable to the commissioner for deposit
17.22 	in the ~~special compensation fund~~ assigned risk safety account in
17.23 	an amount up to $25,000 for each violation or incidence of
17.24 	noncompliance.  The commissioner may adopt rules necessary to
17.25 	implement this subdivision.  In determining the level of an
17.26 	administrative penalty, the commissioner shall consider the
17.27 	following factors:
17.28 	(1) the number of workers affected or potentially affected
17.29 	by the violation or noncompliance;
17.30 	(2) the effect or potential effect of the violation or
17.31 	noncompliance on workers' health, access to health services, or
17.32 	workers' compensation benefits;
17.33 	(3) the effect or potential effect of the violation or
17.34 	noncompliance on workers' understanding of their rights and
17.35 	obligations under the workers' compensation law and rules;
17.36 	(4) whether the violation or noncompliance is an isolated
18.1 	incident or part of a pattern of violations; and
18.2 	(5) the potential or actual economic benefits derived by
18.3 	the managed care plan or a participating provider by virtue of
18.4 	the violation or noncompliance.
18.5 	The commissioner shall give written notice to the managed
18.6 	care plan of the penalty assessment and the reasons for the
18.7 	penalty.  The managed care plan has 30 days from the date the
18.8 	penalty notice is issued within which to file a written request
18.9 	for an administrative hearing and review of the commissioner's
18.10 	determination pursuant to section 176.85, subdivision 1.
18.11 	(c) If the commissioner, for any reason, has cause to
18.12 	believe that a managed care plan has or may violate a statute or
18.13 	rule or a provision of the managed care plan as certified, the
18.14 	commissioner may, before commencing action under paragraph (a)
18.15 	or (b), call a conference with the managed care plan and other
18.16 	persons who may be involved in the suspected violation or
18.17 	noncompliance for the purpose of ascertaining the facts relating
18.18 	to the suspected violation or noncompliance and arriving at an
18.19 	adequate and effective means of correcting or preventing the
18.20 	violation or noncompliance.  The commissioner may enter into
18.21 	stipulated consent agreements with the managed care plan for
18.22 	corrective or preventive action or the amount of the penalty to
18.23 	be paid.  Proceedings under this paragraph shall not be governed
18.24 	by any formal procedural requirements, and may be conducted in a
18.25 	manner the commissioner deems appropriate under the
18.26 	circumstances.
18.27 	(d) The commissioner may issue an order directing a managed
18.28 	care plan or a representative of a managed care plan to cease
18.29 	and desist from engaging in any act or practice that is not in
18.30 	compliance with the managed care plan as certified, or that it
18.31 	is in violation of an applicable statute or rule.  Within 30
18.32 	days of service of the order, the managed care plan may request
18.33 	review of the cease and desist order by an administrative law
18.34 	judge pursuant to chapter 14.  The decision of the
18.35 	administrative law judge shall include findings of fact,
18.36 	conclusions of law and appropriate orders, which shall be the
19.1 	final decision of the commissioner.  In the event of
19.2 	noncompliance with a cease and desist order, the commissioner
19.3 	may institute a proceeding in district court to obtain
19.4 	injunctive or other appropriate relief.
19.5 	(e) A managed care plan, participating health care
19.6 	provider, or an employer or insurer that receives services from
19.7 	the managed care plan, shall cooperate fully with an
19.8 	investigation by the commissioner.  For purposes of this
19.9 	section, cooperation includes, but is not limited to, attending
19.10 	a conference called by the commissioner under paragraph (c),
19.11 	responding fully and promptly to any questions relating to the
19.12 	subject of the investigation, and providing copies of records,
19.13 	reports, logs, data, and other information requested by the
19.14 	commissioner to assist in the investigation.
19.15 	(f) Any person acting on behalf of a managed care plan who
19.16 	knowingly submits false information in any report required to be
19.17 	filed by a managed care plan is guilty of a misdemeanor.
19.18 	
EFFECTIVE DATE. This section is effective the day
19.19 	following final enactment.

19.20 	Sec. 13. Minnesota Statutes 2004, section 176.1812,
19.21 	subdivision 1, is amended to read:
19.22 		Subdivision 1.Requirements.  Upon appropriate filing,
19.23 	the commissioner, compensation judge, Workers' Compensation
19.24 	Court of Appeals, and courts shall recognize as valid and
19.25 	binding a provision in a collective bargaining agreement between
19.26 	a qualified employer or qualified groups of employers ~~engaged in~~
19.27 	~~construction, construction maintenance, and related activities~~ 
19.28 	and the certified and exclusive representative of its employees
19.29 	to establish certain obligations and procedures relating to
19.30 	workers' compensation.  For purposes of this section, "qualified
19.31 	employer" means any self-insured employer, any employer, through
19.32 	itself or any affiliate as defined in section 60D.15,
19.33 	subdivision 2, who is responsible for the first $100,000 or more
19.34 	of any claim, or a private employer developing or projecting an
19.35 	annual workers' compensation premium, in Minnesota, of $250,000
19.36 	or more.  For purposes of this section, a "qualified group of
20.1 	employers" means a group of private employers engaged in
20.2 	workers' compensation group self-insurance complying with
20.3 	chapter 79A, or a group of private employers who purchase
20.4 	workers' compensation insurance as a group, which develops or
20.5 	projects annual workers' compensation insurance premiums of
20.6 	$2,000,000 or more.  This agreement must be limited to, but need
20.7 	not include, all of the following:
20.8 	(a) an alternative dispute resolution system to supplement,
20.9 	modify, or replace the procedural or dispute resolution
20.10 	provisions of this chapter.  The system may include mediation,
20.11 	arbitration, or other dispute resolution proceedings, the
20.12 	results of which may be final and binding upon the parties.  A
20.13 	system of arbitration shall provide that the decision of the
20.14 	arbiter is subject to review either by the Workers' Compensation
20.15 	Court of Appeals in the same manner as an award or order of a
20.16 	compensation judge or, in lieu of review by the Workers'
20.17 	Compensation Court of Appeals, by the Office of Administrative
20.18 	Hearings, by the district court, by the Minnesota Court of
20.19 	Appeals, or by the Supreme Court in the same manner as the
20.20 	Workers' Compensation Court of Appeals and may provide that any
20.21 	arbiter's award disapproved by a court be referred back to the
20.22 	arbiter for reconsideration and possible modification;
20.23 	(b) an agreed list of providers of medical treatment that
20.24 	may be the exclusive source of all medical and related treatment
20.25 	provided under this chapter which need not be certified under
20.26 	section 176.1351;
20.27 	(c) the use of a limited list of impartial physicians to
20.28 	conduct independent medical examinations;
20.29 	(d) the creation of a light duty, modified job, or return
20.30 	to work program;
20.31 	(e) the use of a limited list of individuals and companies
20.32 	for the establishment of vocational rehabilitation or retraining
20.33 	programs which list is not subject to the requirements of
20.34 	section 176.102;
20.35 	(f) the establishment of safety committees and safety
20.36 	procedures; or
21.1 	(g) the adoption of a 24-hour health care coverage plan if
21.2 	a 24-hour plan pilot project is authorized by law, according to
21.3 	the terms and conditions authorized by that law.

21.4 	Sec. 14. Minnesota Statutes 2004, section 176.185,
21.5 	subdivision 1, is amended to read:
21.6 		Subdivision 1.Notice of coverage~~, termination,~~
21.7 	~~cancellation~~ ; notice to insured before policy cancellation,
21.8 	termination or nonrenewal. ~~(a)~~ Within ten days after the
21.9 	issuance or renewal of a policy of insurance covering the
21.10 	liability to pay compensation under this chapter written by an
21.11 	insurer licensed to insure such liability in this state, the
21.12 	insurer shall file notice of coverage with the commissioner
21.13 	under rules and on forms prescribed by the commissioner.  No
21.14 	policy shall be canceled by the insurer within the policy period
21.15 	nor terminated upon its expiration date until a notice in
21.16 	writing is delivered or mailed to the insured ~~and filed with the~~
21.17 	~~commissioner, fixing the date on which it is proposed to cancel~~
21.18 	~~it, or declaring~~ that meets all of the requirements in
21.19 	paragraphs (a) to (c).
21.20 	(a) The notice must specify the date the policy will be
21.21 	terminated if the premium is not paid, declare that the
21.22 	insurer intends to cancel the policy by the specified date, or 
21.23 	does not intend to renew the policy upon the expiration date. ~~A~~
21.24 	~~cancellation or termination is not effective until 30 days after~~
21.25 	~~written notice has been filed with the commissioner in a manner~~
21.26 	~~prescribed by the commissioner unless prior to the expiration of~~
21.27 	~~the 30 day period~~ 
21.28 	(b) The notice must include the following statement, which
21.29 	must be placed on or sent with the premium invoice or other
21.30 	document sent by the insurer to notify the insured of the
21.31 	intended cancellation or termination:  "You must maintain
21.32 	workers' compensation insurance, or obtain permission to
21.33 	self-insure for workers' compensation from the Minnesota
21.34 	Department of Commerce.  The failure to maintain workers'
21.35 	compensation coverage is a violation of section 176.181, and
21.36 	could result in criminal prosecution and civil penalties of up
22.1 	to $1,000 per week per uninsured employee."  This statement must
22.2 	be in at least 12-point font, bold-faced type, and be set out in
22.3 	a separate paragraph.
22.4 	(c) The notice must be mailed or delivered to the insured
22.5 	at least 60 days before the actual date the policy is due to
22.6 	expire or be terminated or canceled.  This 60-day advance notice
22.7 	to the insured applies to cancellation, termination, or
22.8 	nonrenewal of all workers' compensation policies for any reason,
22.9 	notwithstanding any contrary time frame for notice to the
22.10 	policyholder in section 60A.36 or 60A.37.
22.11 		Subd. 1a.Notice to commissioner of cancellation or
22.12 	termination; effective date. (a) Within ten calendar days after
22.13 	the specified cancellation or termination date, the insurer must
22.14 	send to the insured and file with the commissioner a written
22.15 	notice of cancellation or termination in the manner prescribed
22.16 	by the commissioner.  Upon the commissioner's request, the
22.17 	insurer shall provide documentation of the dates the notices
22.18 	required by this subdivision and subdivision 1 were sent to the
22.19 	insured.  The effective dates of cancellation or termination
22.20 	specified in paragraphs (b) to (e) apply notwithstanding any
22.21 	contrary time frames in section 60A.36 or 60A.37.
22.22 	(b) If within the ten calendar days after the specified
22.23 	cancellation or termination date the notice of cancellation or
22.24 	termination is both sent to the insured and received by the
22.25 	commissioner, the cancellation or termination shall be effective
22.26 	on the date specified on the notice of cancellation or
22.27 	termination, except as otherwise provided in paragraph (d).
22.28 	(c) If within the ten calendar days after the specified
22.29 	cancellation or termination date the notice of cancellation or
22.30 	termination is not sent to the insured and received by the
22.31 	commissioner, the cancellation or termination shall not be
22.32 	effective until the notice has been sent to the insured and
22.33 	received by the commissioner, except as otherwise provided in
22.34 	paragraph (d) or (e).
22.35 	(d) If the notice required by subdivision 1 is not sent to
22.36 	the insured or does not meet all of the requirements of
23.1 	subdivision 1, the cancellation or termination shall not be
23.2 	effective until 60 days after the notice of cancellation or
23.3 	termination has been sent to the insured and received by the
23.4 	commissioner, except as otherwise provided in paragraph (e).
23.5 	(e) Paragraphs (c) and (d) do not extend the effective date
23.6 	of cancellation or termination if, on or before the cancellation
23.7 	or termination date determined under paragraph (c) or (d),the
23.8 	employer obtains other insurance coverage or an order exempting
23.9 	the employer from carrying insurance as provided in section
23.10 	176.181. ~~Upon receipt of the notice,~~
23.11 		Subd. 1b.Continued or replacement coverage. If, after
23.12 	receiving a notice of cancellation or termination of a policy
23.13 	under subdivision 1a, the commissioner does not receive a notice
23.14 	of continued or replacement coverage,the commissioner shall
23.15 	notify the insured that the insured must obtain coverage from
23.16 	some other licensed carrier and that, if unable to do so, the
23.17 	insured shall request the commissioner of commerce to require
23.18 	the issuance of a policy as provided in section 79.251,
23.19 	subdivision 4.  Upon a cancellation or termination of a policy
23.20 	by the insurer, the employer is entitled to be assigned a policy
23.21 	in accordance with sections 79.251 and 79.252.
23.22 		Subd. 1c.Cancellation by employer. ~~(b)~~ Notice of
23.23 	cancellation or termination by the insured shall be served upon
23.24 	the insurer by written statement mailed or delivered to the
23.25 	insurer.  Upon receipt of the notice, the insurer shall notify
23.26 	the commissioner of the cancellation or termination and the
23.27 	commissioner shall ask the employer for the reasons for the
23.28 	cancellation or termination and notify the employer of the duty
23.29 	under this chapter to insure the employer's employees.
23.30 	~~(c) In addition to the requirements under paragraphs (a)~~
23.31 	~~and (b), with respect to any trucker employer in classification~~
23.32 	~~7219, 7230, 7231, or 7360 pursuant to the classification plan~~
23.33 	~~required to be filed under section 79.61, if the insurer or its~~
23.34 	~~agent has delivered or mailed a written certificate of insurance~~
23.35 	~~certifying that a policy in the name of a trucker employer under~~
23.36 	~~this paragraph is in force, then the insurer or its agent shall~~
24.1 	~~also deliver or mail written notice of any midterm cancellation~~
24.2 	~~to the trucker employer recipient of the certificate of~~
24.3 	~~insurance at the address listed on the certificate.  If an~~
24.4 	~~insurer or its agent fails to mail or deliver notice of any~~
24.5 	~~midterm cancellation of the trucker employer's policy to the~~
24.6 	~~trucker employer recipient of the certificate of insurance, then~~
24.7 	~~the special compensation fund shall indemnify and hold harmless~~
24.8 	~~the recipient from any award of benefits or other damages under~~
24.9 	~~this chapter resulting from the failure to give notice.~~

24.10 	Sec. 15. Minnesota Statutes 2004, section 176.185,
24.11 	subdivision 7, is amended to read:
24.12 		Subd. 7.Notice, effect.  Where an employer has properly
24.13 	insured the payment of compensation to an employee, ~~and posts a~~
24.14 	~~notice in conspicuous places about the place of business stating~~
24.15 	~~that there is insurance and the name of the insurer, and files a~~
24.16 	~~copy of that notice with the commissioner of the Department of~~
24.17 	~~Labor and Industry,~~the employee, or the employee's dependent,
24.18 	shall proceed directly against the insurer.  In such case but
24.19 	subject to subdivision ~~8~~ 8a, the employer is released from
24.20 	further liability in this respect.
24.21 	
EFFECTIVE DATE. This section is effective the day
24.22 	following final enactment.

24.23 	Sec. 16. Minnesota Statutes 2004, section 176.185, is
24.24 	amended by adding a subdivision to read:
24.25 		Subd. 8a.Insolvent insurer. (a) If an insurer is or
24.26 	becomes insolvent as defined in section 60C.03, subdivision 8,
24.27 	the insured employer is liable, as of May 23, 2003, for payment
24.28 	of the compensable workers' compensation claims that were
24.29 	covered under the employer's policy with the insolvent insurer,
24.30 	to the extent that the Insurance Guaranty Association has
24.31 	determined that the claims are not covered claims under chapter
24.32 	60C.  This paragraph does not in any way limit the Insurance
24.33 	Guarantee Association's right of recovery from an employer under
24.34 	section 60C.11, subdivision 7, for workers' compensation claims
24.35 	that are covered claims under chapter 60C.
24.36 	The Insurance Guaranty Association shall notify the
25.1 	employer and the commissioners of the Departments of Commerce
25.2 	and Labor and Industry of the association's determination and of
25.3 	the employer's liability under this subdivision.  The
25.4 	association's failure to notify the employer or the
25.5 	commissioners shall not relieve the employer of its liability
25.6 	and obligations under this subdivision.
25.7 	(b) An employer who is liable for payment of claims under
25.8 	paragraph (a) shall have all of the rights, responsibilities,
25.9 	and obligations of a self-insured employer under this chapter
25.10 	for those claims only, but without the need for an order from
25.11 	the commissioner of commerce.  The employer shall not be
25.12 	self-insured for purposes of the workers' compensation
25.13 	self-insurers' security fund under chapter 79A for those
25.14 	claims.  The employer shall not be required to pay assessments
25.15 	to the workers' compensation self-insurers' security fund, and
25.16 	the security fund shall not be liable for the claims under
25.17 	section 79A.10.  Notwithstanding any contrary provision of
25.18 	chapter 60C, the Insurance Guaranty Association shall pay the
25.19 	claims as covered claims under chapter 60C if the employer fails
25.20 	to pay the claims as required under chapter 176 and the
25.21 	commissioner of commerce determines that:
25.22 	(1) the employer is the subject of a voluntary or
25.23 	involuntary petition under the United States Bankruptcy Code,
25.24 	title 11;
25.25 	(2) a court of competent jurisdiction has declared the
25.26 	employer to be bankrupt or insolvent; or 
25.27 	(3) the employer is insolvent.
25.28 	(c) If the employer contracts with an entity or person to
25.29 	administer the claims under paragraph (a), the entity or person
25.30 	must be a licensed workers' compensation insurer or a licensed
25.31 	third-party administrator under section 60A.23, subdivision 8.
25.32 	The commissioner of commerce may require the employer to
25.33 	contract with a licensed third-party administrator when the
25.34 	commissioner determines it is necessary to ensure proper payment
25.35 	of compensation under this chapter.
25.36 	(d) For all claims that an employer is liable for under
26.1 	paragraph (a) and pays on or after the effective date of this
26.2 	subdivision, and for all deductible amounts an employer pays on
26.3 	or after the effective date of this subdivision under an
26.4 	employer's policy with an insurer that became insolvent before
26.5 	May 23, 2003:
26.6 	(1) the employer shall file reports and pay assessments to
26.7 	the special compensation fund, according to the requirements of
26.8 	section 176.129 that apply to self-insured employers, based on
26.9 	paid indemnity losses for the claims and deductible amounts it
26.10 	paid; and 
26.11 	(2) the employer may request supplementary benefit and
26.12 	second injury reimbursement from the special compensation fund
26.13 	for the claims and deductible amounts it paid, subject to
26.14 	section 176.129, subdivision 13.  Reimbursement from the special
26.15 	compensation fund is limited to claims that are eligible for
26.16 	supplementary benefit and second injury reimbursement under
26.17 	Minnesota Statutes 1990, section 176.131, and Minnesota Statutes
26.18 	1994, section 176.132.
26.19 	(e) For all claims for which an employer is liable under
26.20 	paragraph (a) and paid between the date of the insurer's
26.21 	insolvency and the effective date of this subdivision, and for
26.22 	all deductible amounts an employer paid between the date of the
26.23 	insurer's insolvency and the effective date of this subdivision
26.24 	under an employer's policy with an insurer that became insolvent
26.25 	before May 23, 2003, the employer may request supplementary
26.26 	benefit and second injury reimbursement from the special
26.27 	compensation fund, subject to section 176.129, subdivision 13,
26.28 	if:
26.29 	(1) the employer files reports and pays all past
26.30 	assessments based on paid indemnity losses, for all claims and
26.31 	deductible amounts it paid from the date of the insolvency of
26.32 	the insurer to the effective date of this subdivision, at the
26.33 	rate that was in effect for self-insured employers under section
26.34 	176.129 during the applicable assessment reporting period;
26.35 	(2) the employer has a pending request for reimbursement of
26.36 	the claims and deductible amounts it paid from the special
27.1 	compensation fund as of the effective date of this subdivision,
27.2 	or files a request for reimbursement within one year after the
27.3 	effective date of this subdivision; and 
27.4 	(3) the claims are eligible for supplementary benefit and
27.5 	second injury reimbursement under Minnesota Statutes 1990,
27.6 	section 176.131, and Minnesota Statutes 1994, section 176.132.
27.7 	(f) An employer who is liable for claims under paragraph (a)
27.8 	shall be eligible for reimbursement from the Workers'
27.9 	Compensation Reinsurance Association under chapter 79 for those
27.10 	claims to the extent they exceed the applicable retention limit
27.11 	selected by the insolvent insurer and if the employer has
27.12 	complied with the requirements for reimbursement established by
27.13 	the Workers' Compensation Reinsurance Association for its
27.14 	self-insured members.  The employer is not responsible for
27.15 	payment of premiums to the reinsurance association to the extent
27.16 	the premiums have been paid by the insolvent insurer.
27.17 	(g) The expenses of the employer in handling the claims
27.18 	paid under paragraph (a) are accorded the same priority as the
27.19 	liquidator's expenses.  The employer must be recognized as a
27.20 	claimant in the liquidation of an insolvent insurer for amounts
27.21 	paid by the employer under this subdivision, and must receive
27.22 	dividends and other distributions at the priority set forth in
27.23 	chapter 60B.  The receiver, liquidator, or statutory successor
27.24 	of an insolvent insurer is bound by settlements of claims made
27.25 	by the employer under this subdivision.  The court having
27.26 	jurisdiction shall grant the claims priority equal to that which
27.27 	the claimant would have been entitled against the assets of the
27.28 	insolvent insurer in the absence of this subdivision.
27.29 	(h) The Workers' Compensation Reinsurance Association and
27.30 	the special compensation fund, as a condition of directly
27.31 	reimbursing an employer eligible for reimbursement, may require
27.32 	the employer to hold it harmless from any claims by a
27.33 	liquidator, receiver, or statutory successor to the insolvent
27.34 	insurer that the Workers' Compensation Reinsurance Association
27.35 	or special compensation fund improperly indemnified or
27.36 	reimbursed the employer.  In no event shall the Workers'
28.1 	Compensation Reinsurance Association or the special compensation
28.2 	fund be required to reimburse any amounts for any claim more
28.3 	than once.
28.4 	
EFFECTIVE DATE. This section is effective the day
28.5 	following final enactment.

28.6 	Sec. 17. Minnesota Statutes 2004, section 176.231,
28.7 	subdivision 5, is amended to read:
28.8 		Subd. 5.Forms for reports.  The commissioner shall
28.9 	prescribe forms for use in making the reports required by this
28.10 	section. ~~The first report of injury form which the employer~~
28.11 	~~submits shall include a declaration by the employer that the~~
28.12 	~~employer will pay the compensation the law requires.~~Forms for
28.13 	reports required by this section shall be as prescribed by the
28.14 	commissioner and shall be the only forms used by an employer,
28.15 	insurer, self-insurer, group self-insurer, and all health care
28.16 	providers.

28.17 	Sec. 18. Minnesota Statutes 2004, section 176.238,
28.18 	subdivision 10, is amended to read:
28.19 		Subd. 10.Fines; violation.  An employer who violates
28.20 	requirements set forth in this section or section 176.239 is
28.21 	subject to a fine of up to $1,000 for each violation payable to
28.22 	the commissioner for deposit in the ~~special compensation~~
28.23 	~~fund~~ assigned risk safety account.
28.24 	
EFFECTIVE DATE. This section is effective the day
28.25 	following final enactment.

28.26 	Sec. 19. Minnesota Statutes 2004, section 176.391,
28.27 	subdivision 2, is amended to read:
28.28 		Subd. 2.Appointment of physicians, surgeons, and other
28.29 	experts.  The compensation judge assigned to a matter, or the
28.30 	commissioner, may appoint one or more neutral physicians or
28.31 	surgeons ~~from the list established by the commissioner~~ to
28.32 	examine the injury of the employee and report thereon except as
28.33 	provided otherwise pursuant to section 176.1361.  Where
28.34 	necessary to determine the facts, the services of other experts
28.35 	may also be employed.

28.36 	Sec. 20. REPEALER.
 29.1 	Minnesota Statutes 2004, section 176.1812, subdivision 6,
29.2 	is repealed.