1997 Minnesota Statutes

     176.129 Creation of the special compensation fund. 

    Subdivision 1.    Deposit of funds.  The special 
 compensation fund is created for the purposes provided for in 
 this chapter and chapter 182.  The state treasurer is the 
 custodian of the special compensation fund.  Sums paid to the 
 commissioner pursuant to this section shall be deposited with 
 the state treasurer for the benefit of the fund and used to pay 
 the benefits under this chapter and administrative costs 
 pursuant to subdivision 11.  Any interest or profit accruing 
 from investment of these sums shall be credited to the special 
 compensation fund.  Subject to the provisions of this section, 
 all the powers, duties, functions, obligations, and rights 
 vested in the special compensation fund immediately prior to 
 January 1, 1984 are transferred to and vested in the special 
 compensation fund recreated by this section.  All rights and 
 obligations of employers with regard to the special compensation 
 fund which existed immediately prior to January 1, 1984, 
 continue, subject to the provisions of this section.  

    Subd. 2.    Payments to fund, death.  In every case of 
 death of an employee resulting from personal injury arising out 
 of and in the course of employment where there are no persons 
 entitled to monetary benefits of dependency compensation, the 
 employer shall pay to the commissioner the sum of $25,000 for 
 the benefit of the special compensation fund.  In every case of 
 death of an employee resulting from personal injury arising out 
 of and in the course of employment where there are no persons 
 entitled to at least $25,000 in monetary benefits of dependency 
 compensation, the employer shall pay to the commissioner for the 
 benefit of the special compensation fund the difference between 
 the amounts actually paid for the dependency benefits and 
 $25,000; but in no event shall the employer pay the commissioner 
 less than $5,000.  

    Subd. 3.    Payments to fund, injury.  If an employee 
 suffers a personal injury resulting in permanent partial 
 disability, temporary total disability, temporary partial 
 disability, permanent total disability, or death and the 
 employee or the employee's dependents are entitled to 
 compensation under sections 176.101 or 176.111 the employer 
 shall pay to the commissioner a lump sum amount, without any 
 interest deduction, equal to 20 percent of the total 
 compensation payable.  The rate under this subdivision shall be 
 adjusted as provided under subdivision 4a and applies to 
 injuries occurring after June 1, 1971, for payments made on or 
 after January 1, 1984.  This payment is to be credited to the 
 special compensation fund and shall be in addition to any 
 compensation payments made by the employer under this chapter. 
 Payment shall be made as soon as the amount is determined and 
 approved by the commissioner.  

    Subd. 4.    Time of injury.  Subdivision 3 applies to 
 all workers' compensation payments, exclusive of medical costs, 
 paid under section 176.101 or 176.111 for an injury or death 
 occurring on or after June 1, 1971.  

    Payments made for personal injuries that occurred prior to 
 June 1, 1971, shall be assessed at the rate in effect on the 
 date of occurrence.  

    Subd. 4a.    Contribution rate adjustment.  In 
 determining the rate of adjustment as provided by subdivision 3, 
 the commissioner shall determine the revenues received less 
 claims received for the preceding 12 months ending June 30, 
 1984, and each June 30 thereafter.  

         If the result is:           the range of adjustment is:
         over $15,000,000                  -10% to 0%
         less than $15,000,000 but 
           more than $10,000,000           -7% to +3%
         less than $10,000,000 but
           more than $5,000,000            -5% to +5%
         less than $5,000,000 
           but more than $0                -3% to +7%
         $0 but less than a 
           $5,000,000 deficit              0% to +10%
         more than a $5,000,000 
           deficit                         +5% to +12%

    The adjustment under this subdivision shall be used for 
 assessments for calendar year 1984 and each year thereafter.  

    An amount assessed pursuant to this section is payable to 
 the commissioner within 45 days of mailing notice of the amount 
 due unless the commissioner orders otherwise.  

    The commissioner may allow an offset of the reimbursements 
 due an employer pursuant to Minnesota Statutes 1990, section 
 176.131, and Minnesota Statutes 1994, section 176.132, against 
 the assessment due under this section and may promulgate rules 
 to establish the terms and conditions under which an employer 
 will be allowed the offset.  

    Subd. 5. Repealed, 1984 c 432 art 2 s 55 

    Subd. 6.    Payments out of fund.  The workers' 
 compensation division, a compensation judge, the workers' 
 compensation court of appeals, or district court in cases before 
 them shall direct the distribution of benefits provided by this 
 chapter.  These benefits are payable in the same manner as other 
 payments of compensation.  

    Subd. 7.    Refunds.  In case deposit is or has been 
 made under subdivision 2 and dependency later is shown, or if 
 deposit is or has been made pursuant to subdivision 2 or 3 by 
 mistake or inadvertence, or under circumstances that justice 
 requires a refund, the state treasurer is authorized to refund 
 the deposit under order of the commissioner, a compensation 
 judge, the workers' compensation court of appeals, or a district 
 court. There is appropriated to the commissioner from the fund 
 an amount sufficient to make the refund and payment.  

    Subd. 8.    Commissioner as administrator.  The 
 commissioner is the administrator of the special compensation 
 fund.  The special fund shall be designated a party in an action 
 regarding any right, obligation, and liability of the special 
 fund.  The state treasurer, as custodian, does not have standing 
 in an action determining any right, obligation, or liability of 
 the special fund.  As requested by the commissioner, the 
 attorney general shall represent the special fund in all legal 
 matters in which the special fund has an interest.  The 
 commissioner may designate one or more division employees to 
 appear on behalf of the special fund in proceedings under this 
 chapter.  The division employees so designated need not be 
 attorneys-at-law. 

    Subd. 9.    Powers of fund.  In addition to powers 
 granted to the special compensation fund by this chapter the 
 fund may do the following:  

    (a) sue and be sued in its own name; 

    (b) intervene in or commence an action under this chapter 
 or any other law, including, but not limited to, intervention or 
 action as a subrogee to the division's right in a third-party 
 action, any proceeding under this chapter in which liability of 
 the special compensation fund is an issue, or any proceeding 
 which may result in other liability of the fund or to protect 
 the legal right of the fund; 

    (c) enter into settlements including but not limited to 
 structured, annuity purchase agreements with appropriate parties 
 under this chapter.  Notwithstanding any other provision of this 
 chapter, any settlement may provide that the fund partially or 
 totally denies liability for payment of benefits, and no 
 determination of employer insurance status and liability under 
 section 176.183, subdivision 2, shall be required for approval 
 of the stipulation for a settlement; 

    (d) contract with another party to administer the special 
 compensation fund; 

    (e) take any other action which an insurer is permitted by 
 law to take in operating within this chapter; and 

    (f) conduct a financial audit of indemnity claim payments 
 and assessments reported to the fund.  This may be contracted by 
 the fund to a private auditing firm. 

    Subd. 10.    Penalty.  Sums paid to the commissioner 
 pursuant to this section shall be in the manner prescribed by 
 the commissioner.  The commissioner may impose a penalty payable 
 to the assigned risk safety account of up to 15 percent of the 
 amount due under this section but not less than $1,000 in the 
 event payment is not made in the manner prescribed.  

    Subd. 11.    Administrative provisions.  The accounting, 
 investigation, and legal costs necessary for the administration 
 of the programs financed by the special compensation fund shall 
 be paid from the fund during each biennium commencing July 1, 
 1981.  Staffing and expenditures related to the administration 
 of the special compensation fund shall be approved through the 
 regular budget and appropriations process.  All sums recovered 
 by the special compensation fund as a result of action under 
 section 176.061, or recoveries of payments made by the special 
 compensation fund under section 176.183 or 176.191, or sums 
 recovered under chapter 182, shall be credited to the special 
 compensation fund. 

    Subd. 12.    Report of commissioner.  The commissioner 
 shall report biennially to the governor and to the legislature 
 as to the financial status of the special compensation fund.  
 The report shall include a statement of the receipts and the 
 disbursements for the period covered.  

    Subd. 13.    Employer reports.  All employers and 
 insurers shall make reports to the commissioner as required for 
 the proper administration of this section and Minnesota Statutes 
 1990, section 176.131, and Minnesota Statutes 1994, section 
 176.132.  Employers and insurers may not be reimbursed from the 
 special compensation fund for any periods for which the employer 
 has not properly filed reports as required by this section and 
 made all payments due to the special compensation fund under 
 subdivision 3.  

    HIST: 1983 c 290 s 93; 1984 c 432 art 2 s 20-22; 1986 c 461 s 
 17; 1987 c 268 art 2 s 28; 1987 c 332 s 27-29; 1992 c 510 art 3 
 s 12; 1992 c 513 art 3 s 37,38; 1995 c 231 art 2 s 58,59; 1996 c 
 305 art 1 s 45,46