1.1                          A bill for an act 
  1.2             relating to workers' compensation; modifying payment 
  1.3             provisions; modifying intervention procedures; 
  1.4             amending Minnesota Statutes 2000, sections 176.092, 
  1.5             subdivision 1, by adding a subdivision; 176.106, 
  1.6             subdivision 6; 176.111, subdivision 22; 176.130, 
  1.7             subdivisions 8, 9; 176.139, subdivision 2; 176.155, 
  1.8             subdivision 2; 176.181, subdivision 3; 176.182; 
  1.9             176.185, subdivision 5a; 176.194, subdivision 3; 
  1.10            176.361; 176.84, subdivision 2; Minnesota Statutes 
  1.11            2001 Supplement, section 176.103, subdivision 3. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 176.092, 
  1.14  subdivision 1, is amended to read: 
  1.15     Subdivision 1.  [WHEN REQUIRED.] An injured employee or a 
  1.16  dependent under section 176.111 who is a minor or an 
  1.17  incapacitated person as that term is defined in section 525.54, 
  1.18  subdivision 2 or 3, shall have a guardian or conservator to 
  1.19  represent the interests of the employee or dependent in 
  1.20  obtaining compensation according to the provisions of this 
  1.21  chapter.  This section applies if the employee receives or is 
  1.22  eligible for permanent total disability benefits, supplementary 
  1.23  benefits, or permanent partial disability benefits totaling more 
  1.24  than $3,000 or a dependent receives or is eligible for 
  1.25  dependency benefits, or if the employee or dependent receives or 
  1.26  is offered a lump sum that exceeds five times the statewide 
  1.27  average weekly wage. 
  1.28     Sec. 2.  Minnesota Statutes 2000, section 176.092, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 1a.  [PARENT AS GUARDIAN.] A parent is presumed to be 
  2.3   the guardian for purposes of this section.  Where the parents of 
  2.4   the employee are divorced, either parent with legal custody may 
  2.5   be considered the guardian for purposes of this section.  
  2.6   Notwithstanding subdivision 1, where the employee receives or is 
  2.7   eligible for a lump sum payment of permanent total disability 
  2.8   benefits, supplementary benefits, or permanent partial 
  2.9   disability benefits totaling more than $3,000 or if the employee 
  2.10  receives or is offered a settlement that exceeds five times the 
  2.11  statewide average weekly wage, the compensation judge shall 
  2.12  review such cases to determine whether benefits should be paid 
  2.13  in a lump sum or through an annuity. 
  2.14     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  2.15  176.103, subdivision 3, is amended to read: 
  2.16     Subd. 3.  [MEDICAL SERVICES REVIEW BOARD; SELECTION; 
  2.17  POWERS.] (a) There is created a medical services review board 
  2.18  composed of the commissioner or the commissioner's designee as 
  2.19  an ex officio member, two persons representing chiropractic, one 
  2.20  person representing hospital administrators, one physical 
  2.21  therapist, one registered nurse, and six physicians representing 
  2.22  different specialties which the commissioner determines are the 
  2.23  most frequently utilized by injured employees.  The board shall 
  2.24  also have one person representing employees, one person 
  2.25  representing employers or insurers, and one person representing 
  2.26  the general public.  The members shall be appointed by the 
  2.27  commissioner and shall be governed by section 15.0575.  Terms of 
  2.28  the board's members may be renewed.  The board may appoint from 
  2.29  its members whatever subcommittees it deems appropriate.  
  2.30  Notwithstanding section 15.059, this board does not expire 
  2.31  unless the board no longer fulfills the purpose for which the 
  2.32  board was established, the board has not met in the last 18 
  2.33  months, or the board does not comply with the registration 
  2.34  requirements of section 15.0599, subdivision 3. 
  2.35     The commissioner may appoint alternates for one-year terms 
  2.36  to serve as a member when a member is unavailable.  The number 
  3.1   of alternates shall not exceed one chiropractor, one physical 
  3.2   therapist, one registered nurse, one hospital administrator, 
  3.3   three physicians, one employee representative, one employer or 
  3.4   insurer representative, and one representative of the general 
  3.5   public. 
  3.6      The board shall review clinical results for adequacy and 
  3.7   recommend to the commissioner scales for disabilities and 
  3.8   apportionment.  
  3.9      The board shall review and recommend to the commissioner 
  3.10  rates for individual clinical procedures and aggregate costs.  
  3.11  The board shall assist the commissioner in accomplishing public 
  3.12  education.  
  3.13     In evaluating the clinical consequences of the services 
  3.14  provided to an employee by a clinical health care provider, the 
  3.15  board shall consider the following factors in the priority 
  3.16  listed:  
  3.17     (1) the clinical effectiveness of the treatment; 
  3.18     (2) the clinical cost of the treatment; and 
  3.19     (3) the length of time of treatment.  
  3.20     The board shall advise the commissioner on the adoption of 
  3.21  rules regarding all aspects of medical care and services 
  3.22  provided to injured employees.  
  3.23     (b) The medical services review board may upon petition 
  3.24  from the commissioner and after hearing, issue a warning, a 
  3.25  penalty of $200 per violation, a restriction on providing 
  3.26  treatment that requires preauthorization by the board, 
  3.27  commissioner, or compensation judge for a plan of treatment, 
  3.28  disqualify, or suspend a provider from receiving payment for 
  3.29  services rendered under this chapter if a provider has violated 
  3.30  any part of this chapter or rule adopted under this chapter, or 
  3.31  where there has been a pattern of, or an egregious case of, 
  3.32  inappropriate, unnecessary, or excessive treatment by a 
  3.33  provider.  Any penalties collected under this subdivision shall 
  3.34  be payable to the commissioner for deposit in the assigned risk 
  3.35  safety account.  The hearings are initiated by the commissioner 
  3.36  under the contested case procedures of chapter 14.  The board 
  4.1   shall make the final decision following receipt of the 
  4.2   recommendation of the administrative law judge.  The board's 
  4.3   decision is appealable to the workers' compensation court of 
  4.4   appeals in the manner provided by section 176.421. 
  4.5      (c) The board may adopt rules of procedure.  The rules may 
  4.6   be joint rules with the rehabilitation review panel.  
  4.7      Sec. 4.  Minnesota Statutes 2000, section 176.106, 
  4.8   subdivision 6, is amended to read: 
  4.9      Subd. 6.  [PENALTY.] At a conference, if the insurer does 
  4.10  not provide a specific reason for nonpayment of the items in 
  4.11  dispute, the commissioner's designee may assess a penalty of 
  4.12  $300 payable to the commissioner for deposit in the assigned 
  4.13  risk safety account, unless it is determined that the reason for 
  4.14  the lack of specificity was the failure of the insurer, upon 
  4.15  timely request, to receive information necessary to remedy the 
  4.16  lack of specificity.  This penalty is in addition to any penalty 
  4.17  that may be applicable for nonpayment.  
  4.18     Sec. 5.  Minnesota Statutes 2000, section 176.111, 
  4.19  subdivision 22, is amended to read: 
  4.20     Subd. 22.  [PAYMENTS TO ESTATE; DEATH OF EMPLOYEE.] In 
  4.21  every case of death of an employee resulting from personal 
  4.22  injury arising out of and in the course of employment where 
  4.23  there are no persons entitled to monetary benefits of dependency 
  4.24  compensation, the employer shall pay to the estate of the 
  4.25  deceased employee the sum of $60,000.  This payment must be made 
  4.26  within 14 days of notice to the insurer of the appointment of a 
  4.27  personal representative of the estate.  Within 14 days of notice 
  4.28  to the insurer of the death of the employee, the insurer must 
  4.29  send notice to the estate, at the deceased employee's last known 
  4.30  address, that this payment will be made after a personal 
  4.31  representative has been appointed by a probate court. 
  4.32     Sec. 6.  Minnesota Statutes 2000, section 176.130, 
  4.33  subdivision 8, is amended to read: 
  4.34     Subd. 8.  [PENALTIES; WOOD MILLS.] If the assessment 
  4.35  provided for in this chapter is not paid on or before February 
  4.36  15 of the year when due and payable, the commissioner may impose 
  5.1   penalties as provided in section 176.129, subdivision 10, 
  5.2   payable to the commissioner for deposit in the assigned risk 
  5.3   safety account.  
  5.4      Sec. 7.  Minnesota Statutes 2000, section 176.130, 
  5.5   subdivision 9, is amended to read: 
  5.6      Subd. 9.  [FALSE REPORTS.] Any person or entity that, for 
  5.7   the purpose of evading payment of the assessment or avoiding the 
  5.8   reimbursement, or any part of it, makes a false report under 
  5.9   this section shall pay to the commissioner for deposit in the 
  5.10  assigned risk safety account, in addition to the assessment, a 
  5.11  penalty of 75 percent of the amount of the assessment.  A person 
  5.12  who knowingly makes or signs a false report, or who knowingly 
  5.13  submits other false information, is guilty of a misdemeanor.  
  5.14     Sec. 8.  Minnesota Statutes 2000, section 176.139, 
  5.15  subdivision 2, is amended to read: 
  5.16     Subd. 2.  [FAILURE TO POST; PENALTY.] The commissioner may 
  5.17  assess a penalty of $500 against the employer payable to the 
  5.18  commissioner for deposit in the assigned risk safety account if, 
  5.19  after notice from the commissioner, the employer violates the 
  5.20  posting requirement of this section.  
  5.21     Sec. 9.  Minnesota Statutes 2000, section 176.155, 
  5.22  subdivision 2, is amended to read: 
  5.23     Subd. 2.  [NEUTRAL PHYSICIAN.] In each case of dispute as 
  5.24  to the injury the commissioner of labor and industry, or in case 
  5.25  of a hearing the compensation judge conducting the hearing, or 
  5.26  the workers' compensation court of appeals if the matter is 
  5.27  before it, may with or without the request of any interested 
  5.28  party, designate a neutral physician from the list of neutral 
  5.29  physicians developed by the commissioner of labor and industry 
  5.30  to make an examination of the injured worker and report the 
  5.31  findings to the commissioner of labor and industry, compensation 
  5.32  judge, or the workers' compensation court of appeals, as the 
  5.33  case may be; provided that the request of the interested party 
  5.34  must comply with the rules of the commissioner of labor and 
  5.35  industry and the workers' compensation court of appeals 
  5.36  regulating the proper time and forms for the request, and 
  6.1   further provided that when an interested party requests, not 
  6.2   later than 30 days prior to a scheduled prehearing conference, 
  6.3   that a neutral physician be designated, the compensation judge 
  6.4   shall make such a designation.  When a party has requested the 
  6.5   designation of a neutral physician prior to a prehearing 
  6.6   conference, that party may withdraw the request at any time 
  6.7   prior to the hearing.  The commissioner of labor and industry, 
  6.8   compensation judge, or the workers' compensation court of 
  6.9   appeals, as the case may be, may request the neutral physician 
  6.10  to answer any particular question with reference to the medical 
  6.11  phases of the case, including questions calling for an opinion 
  6.12  as to the cause and occurrence of the injury insofar as medical 
  6.13  knowledge is relevant in the answer.  A copy of the signed 
  6.14  certificate of the neutral physician shall be mailed to the 
  6.15  parties in interest and either party, within five days from date 
  6.16  of mailing, may demand that the physician be produced for 
  6.17  purposes of cross-examination.  The signed certificate of a 
  6.18  neutral physician is competent evidence of the facts stated 
  6.19  therein.  The expense of the examination shall be paid as 
  6.20  ordered by the commissioner of labor and industry, compensation 
  6.21  judge, or the workers' compensation court of appeals. 
  6.22     The commissioner of labor and industry shall develop and 
  6.23  maintain a list of neutral physicians available for designation 
  6.24  pursuant to this subdivision or section 176.391, subdivision 2.  
  6.25     Sec. 10.  Minnesota Statutes 2000, section 176.181, 
  6.26  subdivision 3, is amended to read: 
  6.27     Subd. 3.  [FAILURE TO INSURE, PENALTY.] (a) The 
  6.28  commissioner, having reason to believe that an employer is in 
  6.29  violation of subdivision 2, may issue an order directing the 
  6.30  employer to comply with subdivision 2, to refrain from employing 
  6.31  any person at any time without complying with subdivision 2, and 
  6.32  to pay a penalty of up to $1,000 per employee per week during 
  6.33  which the employer was not in compliance. 
  6.34     (b) An employer shall have ten working days to contest such 
  6.35  an order by filing a written objection with the commissioner, 
  6.36  stating in detail its reasons for objecting.  If the 
  7.1   commissioner does not receive an objection within ten working 
  7.2   days, the commissioner's order shall constitute a final order 
  7.3   not subject to further review, and violation of that order shall 
  7.4   be enforceable by way of civil contempt proceedings in district 
  7.5   court.  If the commissioner does receive a timely objection, the 
  7.6   commissioner shall refer the matter to the office of 
  7.7   administrative hearings for an expedited hearing before a 
  7.8   compensation judge.  The compensation judge shall issue a 
  7.9   decision either affirming, reversing, or modifying the 
  7.10  commissioner's order within ten days of the close of the 
  7.11  hearing.  If the compensation judge affirms the commissioner's 
  7.12  order, the compensation judge may order the employer to pay an 
  7.13  additional penalty if the employer continued to employ persons 
  7.14  without complying with subdivision 2 while the proceedings were 
  7.15  pending. 
  7.16     (c) All penalties assessed under this subdivision shall be 
  7.17  paid into the state treasury and credited to payable to the 
  7.18  commissioner for deposit in the assigned risk safety account.  
  7.19  Penalties assessed under this section shall constitute a lien 
  7.20  for government services pursuant to section 514.67, on all the 
  7.21  employer's property and shall be subject to the Revenue 
  7.22  Recapture Act in chapter 270A. 
  7.23     (d) For purposes of this subdivision, the term "employer" 
  7.24  includes any owners or officers of a corporation who direct and 
  7.25  control the activities of employees. 
  7.26     Sec. 11.  Minnesota Statutes 2000, section 176.182, is 
  7.27  amended to read: 
  7.28     176.182 [BUSINESS LICENSES OR PERMITS; COVERAGE REQUIRED.] 
  7.29     Every state or local licensing agency shall withhold the 
  7.30  issuance or renewal of a license or permit to operate a business 
  7.31  in Minnesota until the applicant presents acceptable evidence of 
  7.32  compliance with the workers' compensation insurance coverage 
  7.33  requirement of section 176.181, subdivision 2, by providing the 
  7.34  name of the insurance company, the policy number, and dates of 
  7.35  coverage or the permit to self-insure.  The commissioner shall 
  7.36  assess a penalty to the employer of $2,000 payable to the 
  8.1   commissioner for deposit in the assigned risk safety account, if 
  8.2   the information is not reported or is falsely reported.  
  8.3      Neither the state nor any governmental subdivision of the 
  8.4   state shall enter into any contract for the doing of any public 
  8.5   work before receiving from all other contracting parties 
  8.6   acceptable evidence of compliance with the workers' compensation 
  8.7   insurance coverage requirement of section 176.181, subdivision 2.
  8.8      This section shall not be construed to create any liability 
  8.9   on the part of the state or any governmental subdivision to pay 
  8.10  workers' compensation benefits or to indemnify the special 
  8.11  compensation fund, an employer, or insurer who pays workers' 
  8.12  compensation benefits.  
  8.13     Sec. 12.  Minnesota Statutes 2000, section 176.185, 
  8.14  subdivision 5a, is amended to read: 
  8.15     Subd. 5a.  [PENALTY FOR IMPROPER WITHHOLDING.] An employer 
  8.16  who violates subdivision 5 after notice from the commissioner is 
  8.17  subject to a penalty of 400 percent of the amount withheld from 
  8.18  or charged the employee.  The penalty shall be imposed by the 
  8.19  commissioner.  Forty percent of this penalty is payable to the 
  8.20  commissioner for deposit in the assigned risk safety account and 
  8.21  60 percent is payable to the employee. 
  8.22     Sec. 13.  Minnesota Statutes 2000, section 176.194, 
  8.23  subdivision 3, is amended to read: 
  8.24     Subd. 3.  [PROHIBITED CONDUCT.] The following conduct is 
  8.25  prohibited: 
  8.26     (1) failing to reply, within 30 calendar days after 
  8.27  receipt, to all written communication about a claim from a 
  8.28  claimant that requests a response; 
  8.29     (2) failing, within 45 calendar days after receipt of a 
  8.30  written request, to commence benefits or to advise the claimant 
  8.31  of the acceptance or denial of the claim by the insurer; 
  8.32     (3) failing to pay or deny medical bills within 45 days 
  8.33  after the receipt of all information requested from medical 
  8.34  providers; 
  8.35     (4) filing a denial of liability for workers' compensation 
  8.36  benefits without conducting an investigation; 
  9.1      (5) failing to regularly pay weekly benefits in a timely 
  9.2   manner as prescribed by rules adopted by the commissioner once 
  9.3   weekly benefits have begun.  Failure to regularly pay weekly 
  9.4   benefits means failure to pay an employee on more than three 
  9.5   occasions in any 12-month period within three business days of 
  9.6   when payment was due; 
  9.7      (6) failing to respond to the department within 30 calendar 
  9.8   days after receipt of a written inquiry from the department 
  9.9   about a claim; 
  9.10     (7) failing to pay pursuant to an order of the department, 
  9.11  compensation judge, court of appeals, or the supreme court, 
  9.12  within 45 days from the filing of the order unless the order is 
  9.13  under appeal; or 
  9.14     (8) advising a claimant not to obtain the services of an 
  9.15  attorney or representing that payment will be delayed if an 
  9.16  attorney is retained by the claimant.; or 
  9.17     (9) altering information on a document to be filed with the 
  9.18  department without the notice and consent of any person who 
  9.19  previously signed the document and who would be adversely 
  9.20  affected by the alteration. 
  9.21     Sec. 14.  Minnesota Statutes 2000, section 176.361, is 
  9.22  amended to read: 
  9.23     176.361 [INTERVENTION.] 
  9.24     Subdivision 1.  [RIGHT TO INTERVENE.] A person who has an 
  9.25  interest in any matter before the workers' compensation court of 
  9.26  appeals, or commissioner, or compensation judge such that the 
  9.27  person may either gain or lose by an order or decision may 
  9.28  intervene in the proceeding by filing an application or motion 
  9.29  in writing stating the facts which show the interest.  The 
  9.30  commissioner is considered to have an interest and shall be 
  9.31  permitted to intervene at the appellate level when a party 
  9.32  relies in its claim or defense upon any statute or rule 
  9.33  administered by the commissioner, or upon any rule, order, 
  9.34  requirement, or agreement issued or made under the statute or 
  9.35  rule.  
  9.36     The commissioner may adopt rules, not inconsistent with 
 10.1   this section to govern intervention.  The workers' compensation 
 10.2   court of appeals shall adopt rules to govern the procedure for 
 10.3   intervention in matters before it.  
 10.4      If the department of human services or the department of 
 10.5   economic security seeks to intervene in any matter before the 
 10.6   division, a compensation judge or the workers' compensation 
 10.7   court of appeals, a nonattorney employee of the department, 
 10.8   acting at the direction of the staff of the attorney general, 
 10.9   may prepare, sign, serve and file motions for intervention and 
 10.10  related documents, appear at prehearing conferences, and 
 10.11  participate in matters before a compensation judge or the 
 10.12  workers' compensation court of appeals.  Any other interested 
 10.13  party may intervene using a nonattorney and may participate in 
 10.14  any proceeding to the same extent an attorney could.  This 
 10.15  activity shall not be considered to be the unauthorized practice 
 10.16  of law.  An intervenor represented by a nonattorney shall be 
 10.17  deemed to be represented by an attorney for the purposes of the 
 10.18  conclusive presumption of section 176.521, subdivision 2. 
 10.19     Subdivisions 3 to 6 do not apply to matters pending in the 
 10.20  mediation or rehabilitation and medical services sections. 
 10.21     Subd. 2.  [WRITTEN APPLICATION OR MOTION.] A person 
 10.22  desiring to intervene in a workers' compensation case as a 
 10.23  party, including but not limited to a health care provider who 
 10.24  has rendered services to an employee or an insurer who has paid 
 10.25  benefits under section 176.191, shall submit a timely written 
 10.26  application or motion to intervene to the commissioner, the 
 10.27  office, or to the court of appeals, whichever is applicable.  
 10.28     (a) The application or motion must be served on all parties 
 10.29  either personally, by first class mail, or registered mail, 
 10.30  return receipt requested.  An application or motion to intervene 
 10.31  must be served and filed within 30 60 days after a person 
 10.32  potential intervenor has received been served with notice that a 
 10.33  claim has been filed or a request for mediation made.  An 
 10.34  untimely application is subject to denial under subdivision 7 of 
 10.35  a right to intervene or within 30 days of notice of an 
 10.36  administrative conference.  Upon the filing of a timely 
 11.1   application or motion to intervene, the potential intervenor 
 11.2   shall be granted intervenor status without the need for an 
 11.3   order.  Objections to the intervention may be subsequently 
 11.4   addressed by a compensation judge.  Where a motion to intervene 
 11.5   is not timely filed under this section, the potential intervenor 
 11.6   interest shall be extinguished and the potential intervenor may 
 11.7   not collect, or attempt to collect, the extinguished interest 
 11.8   from the employee, employer, insurer, or any government program. 
 11.9      (b) In any other situation, timeliness will be determined 
 11.10  by the commissioner, compensation judge, or awarding authority 
 11.11  in each case based on circumstances at the time of filing.  The 
 11.12  application or motion must show how the applicant's legal 
 11.13  rights, duties, or privileges may be determined or affected by 
 11.14  the case; state the grounds and purposes for which intervention 
 11.15  is sought; and indicate the statutory right to intervene.  The 
 11.16  application or motion must be accompanied by the following, if 
 11.17  applicable, except that if the action is pending in the 
 11.18  mediation or rehabilitation and medical services section, clause 
 11.19  (6) is not required and the information listed in clauses (1) to 
 11.20  (5) may be brought to the conference rather than attached to the 
 11.21  application:  
 11.22     (1) an itemization of disability payments showing the 
 11.23  period during which the payments were or are being made; the 
 11.24  weekly or monthly rate of the payments; and the amount of 
 11.25  reimbursement claimed; 
 11.26     (2) a summary of the medical or treatment payments, or 
 11.27  rehabilitation services provided by the vocational 
 11.28  rehabilitation unit, broken down by creditor, showing the total 
 11.29  bill submitted, the period of treatment or rehabilitation 
 11.30  covered by that bill, the amount of payment on that bill, and to 
 11.31  whom the payment was made; 
 11.32     (3) copies of all medical or treatment bills on which some 
 11.33  payment was made; 
 11.34     (4) copies of the work sheets or other information stating 
 11.35  how the payments on medical or treatment bills were calculated; 
 11.36     (5) a copy of the relevant policy or contract provisions 
 12.1   upon which the claim for reimbursement is based; 
 12.2      (6) a proposed order allowing intervention with sufficient 
 12.3   copies to serve on all parties; 
 12.4      (7) the name and telephone number of the person 
 12.5   representing the intervenor who has authority to reach a 
 12.6   settlement of the issues in dispute; 
 12.7      (8) (7) proof of service or copy of the registered mail 
 12.8   receipt; 
 12.9      (9) (8) at the option of the intervenor, a proposed 
 12.10  stipulation which states that all of the payments for which 
 12.11  reimbursement is claimed are related to the injury or condition 
 12.12  in dispute in the case and that, if the petitioner is successful 
 12.13  in proving the compensability of the claim, it is agreed that 
 12.14  the sum be reimbursed to the intervenor; and 
 12.15     (10) (9) if represented by an attorney, the name, address, 
 12.16  telephone number, and Minnesota Supreme Court license number of 
 12.17  the attorney. 
 12.18     Subd. 3.  [STIPULATION.] If the person submitting the 
 12.19  application or motion for intervention has included a proposed 
 12.20  stipulation, all parties shall either execute and return the 
 12.21  signed stipulation to the intervenor who must file it with the 
 12.22  division or judge or serve upon the intervenor and all other 
 12.23  parties and file with the division specific and detailed 
 12.24  objections to any payments made by the intervenor which are not 
 12.25  conceded to be correct and related to the injury or condition 
 12.26  the petitioner has asserted is compensable.  If a party has not 
 12.27  returned the signed stipulation or filed objections within 30 
 12.28  days of service of the application or motion, the intervenor's 
 12.29  right to reimbursement for the amount sought is deemed 
 12.30  established provided that the petitioner's claim is determined 
 12.31  to be compensable.  
 12.32     Subd. 4.  [ATTENDANCE BY INTERVENOR.] Unless a stipulation 
 12.33  has been signed and filed or the intervenor's right to 
 12.34  reimbursement has otherwise been established, the intervenor 
 12.35  shall attend all settlement or pretrial conferences, 
 12.36  administrative conferences, and shall attend the regular hearing 
 13.1   if ordered to do so by the compensation judge.  Failure to 
 13.2   appear shall result in the denial of the claim for reimbursement.
 13.3      Subd. 5.  [ORDER.] If an objection to intervention remains 
 13.4   following settlement or pretrial conferences, the commissioner 
 13.5   or compensation judge shall rule on the intervention and the 
 13.6   order is binding on the compensation judge to whom the case is 
 13.7   assigned for issue shall be addressed at the hearing.  
 13.8      Subd. 6.  [PRESENTATION OF EVIDENCE BY INTERVENOR.] Unless 
 13.9   a stipulation has been signed and filed or the intervenor's 
 13.10  right to reimbursement has otherwise been established, the 
 13.11  intervenor shall present evidence in support of the claim at the 
 13.12  hearing unless otherwise ordered by the compensation judge.  
 13.13     Subd. 7.  [EFFECTS OF NONCOMPLIANCE.] Except as provided in 
 13.14  subdivisions 2 and 4, failure to comply with this section shall 
 13.15  not result in a denial of the claim for reimbursement unless the 
 13.16  compensation judge, or commissioner, determines that the 
 13.17  noncompliance has materially prejudiced the interests of the 
 13.18  other parties.  
 13.19     Sec. 15.  Minnesota Statutes 2000, section 176.84, 
 13.20  subdivision 2, is amended to read: 
 13.21     Subd. 2.  [PENALTY.] The commissioner or compensation judge 
 13.22  may impose a penalty of $500 for each violation of subdivision 
 13.23  1.  This penalty is payable to the commissioner for deposit in 
 13.24  the assigned risk safety account.