Bill Text: MN HF1362 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Workers' Compensation Advisory Council recommendations adopted, and duties, benefits, and requirements changed, rulemaking required, and money appropriated.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-05-21 - HF indefinitely postponed [HF1362 Detail]
Download: Minnesota-2011-HF1362-Engrossed.html
1.2relating to workers' compensation; adopting recommendations of the Workers'
1.3Compensation Advisory Council; changing certain duties, benefits, and
1.4requirements; requiring rulemaking; appropriating money;amending Minnesota
1.5Statutes 2010, sections 14.48, subdivisions 2, 3; 14.49; 14.50; 176.106,
1.6subdivisions 1, 3, 5, 6, 7, 8, 9; 176.137, subdivisions 2, 4, 5; 176.238, subdivision
1.76; 176.305, subdivisions 1, 1a; 176.307; 176.341, subdivision 4.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 14.48, subdivision 2, is amended to read:
1.10 Subd. 2. Chief administrative law judge. The office shall be under the direction
1.11of a chief administrative law judge who shall be learned in the law and appointed by the
1.12governor, with the advice and consent of the senate, for a term ending on June 30 of the
1.13sixth calendar year after appointment. Senate confirmation of the chief administrative law
1.14judge shall be as provided by section15.066 . The chief administrative law judge may hear
1.15cases and shall appoint additional administrative law judges and compensation judges to
1.16serve in the office as necessary to fulfill the dutiesprescribed in chapters 14 and 176 of
1.17the Office of Administrative Hearings. The chief administrative law judge may delegate
1.18to a subordinate employee the exercise of a specified statutory power or duty as deemed
1.19advisable, subject to the control of the chief administrative law judge. Every delegation
1.20must be by written order filed with the secretary of state. The chief administrative law
1.21judge is subject to the provisions of the Minnesota Constitution, article VI, section 6, the
1.22jurisdiction of the Board on Judicial Standards, and the provisions of the Code of Judicial
1.23Conduct.
1.24 Sec. 2. Minnesota Statutes 2010, section 14.48, subdivision 3, is amended to read:
2.1 Subd. 3. Administrative law judges and compensation judges. (a) All
2.2administrative law judges and compensation judges shall be in the classified service
2.3except that the chief administrative law judge shall be in the unclassified service, but
2.4may be removed only for cause.
2.5(b) All administrative law judges and workers' compensation judges must be learned
2.6in the law and must be free of any political or economic association that would impair
2.7their ability to function in a fair and impartial manner. Administrative law judges shall
2.8have demonstrated knowledge of administrative procedures and workers' compensation
2.9judges shall have demonstrated knowledge of workers' compensation laws.
2.10(c)The appointment of individuals as workers' compensation judges or as
2.11administrative law judges does not preclude the chief administrative law judge from
2.12establishing a system of training to enable them to acquire demonstrable knowledge and
2.13to become qualified to conduct hearings in the area other than the area of their original
2.14appointment. Only compensation judges shall conduct administrative conferences,
2.15hearings, or other workers' compensation proceedings within the jurisdiction of the Office
2.16of Administrative Hearings under chapter 176, unless the proceeding is required to be
2.17conducted under chapter 14. Conducting hearings in theother administrative law area
2.18does not affectan administrative law judge's or a workers' compensation judge's job
2.19class established pursuant to section43A.07 or seniority within that job class. The chief
2.20administrative law judge shall annually notify the Department of Management and Budget
2.21of the amount of credit payable to the workers' compensation special fund for time spent
2.22by workers' compensation judges on noncompensation proceedings.
2.23(d) Administrative law judges and compensation judges are subject to the provisions
2.24of the Code of Judicial Conduct. Administrative law and compensation judges may,
2.25however, serve as a member of a governmental board when so directed by the legislature.
2.26The chief administrative law judge shall provide training to administrative law and
2.27compensation judges about the requirements of the code and shall apply the provisions
2.28of the code to their actions. Only administrative law judges serving as temporary judges
2.29under a written contract are considered to be part-time judges for purposes of the code.
2.30Reports required to be filed by the code must be filed with the chief administrative law
2.31judge. The chief administrative law judge shall apply the provisions of the Code of Judicial
2.32Conduct, to the extent applicable, to the other administrative law and compensation judges
2.33in a manner consistent with interpretations made by the Board on Judicial Standards.
2.34The chief administrative law judge shall follow the procedural requirements of the
2.35commissioner's plan for state employees if any adverse personnel action is taken based in
2.36whole or in part as a violation of the Code of Judicial Conduct.
3.1(e) In addition to other duties provided by law, workers' compensation and
3.2administrative law judges may mediate, arbitrate, or take other appropriate action on
3.3matters referred to the Office of Administrative Hearings by any member of the federal or
3.4state judicial branch or by the Workers' Compensation Court of Appeals.
3.5 Sec. 3. Minnesota Statutes 2010, section 14.49, is amended to read:
3.614.49 TEMPORARY ADMINISTRATIVE LAW JUDGES.
3.7When regularly appointed administrative law judgesor compensation judges are not
3.8available, the chief administrative law judge may contract with qualified individuals to
3.9serve as administrative law judgesor compensation judges. Such temporary administrative
3.10law judgesor compensation judges shall not be employees of the state. Compensation
3.11judges must be employees of the state, except that when all available regularly appointed
3.12compensation judges are disqualified from a specific case under the Code of Judicial
3.13Conduct, the chief administrative law judge may contract with a workers' compensation
3.14attorney or former workers' compensation judge to serve as a compensation judge for
3.15that case.
3.16 Sec. 4. Minnesota Statutes 2010, section 14.50, is amended to read:
3.1714.50 HEARINGS BEFORE ADMINISTRATIVE LAW JUDGE.
3.18All hearings of state agencies required to be conducted under this chapter shall be
3.19conducted by an administrative law judge assigned by the chief administrative law judge
3.20or by a workers' compensation judge assigned by the chief administrative law judge as
3.21provided in section14.48 . All hearings required to be conducted under chapter 176 shall
3.22be conducted by a compensation judge assigned by the chief administrative law judgeor
3.23by an administrative law judge assigned by the chief administrative law judge as provided
3.24in section
14.48
3.25conductsuch hearings under this chapter, the chief administrative law judge shall attempt
3.26to utilize personnel having expertise in the subject to be dealt with in the hearing. It shall
3.27be the duty of the judge to: (1) advise an agency as to the location at which and time during
3.28which a hearing should be held so as to allow for participation by all affected interests; (2)
3.29conduct only hearings for which proper notice has been given; (3) see to it that all hearings
3.30are conducted in a fair and impartial manner. Except in the case of workers' compensation
3.31hearings involving claims for compensation it shall also be the duty of the judge to make a
3.32report on each proposed agency action in which the administrative law judge functioned in
3.33an official capacity, stating findings of fact and conclusions and recommendations, taking
3.34notice of the degree to which the agency has (i) documented its statutory authority to take
4.1the proposed action, (ii) fulfilled all relevant procedural requirements of law or rule, and
4.2(iii) in rulemaking proceedings, demonstrated the need for and reasonableness of its
4.3proposed action with an affirmative presentation of facts.
4.4 Sec. 5. Minnesota Statutes 2010, section 176.106, subdivision 1, is amended to read:
4.5 Subdivision 1. Scope. All determinations by the commissioner orthe
4.6commissioner's designee compensation judge pursuant to section
176.102 ,
176.103 ,
4.7176.135
, or
176.136 shall be in accordance with the procedures contained in this section.
4.8For medical disputes under sections176.135 and
176.136 , the commissioner or the
4.9commissioner's designee shall have jurisdiction to hold an administrative conference
4.10and issue decisions and orders under this section if the amount in dispute at the time the
4.11medical request is filed is $7,500 or less.
4.12 Sec. 6. Minnesota Statutes 2010, section 176.106, subdivision 3, is amended to read:
4.13 Subd. 3. Conference. The matter shall be scheduled for an administrative
4.14conference within 60 days after receipt of the request for a conference. Notice of the
4.15conference shall be served on all parties no later than 14 days prior to the conference,
4.16unless the commissioner or compensation judge determines that a conference shall not be
4.17held. The commissioner or compensation judge may order an administrative conference
4.18before the commissioner's designee whether or not a request for conference is filed.
4.19The commissioner or compensation judge may refuse to hold an administrative
4.20conference and refer the matter for a settlement or pretrial conference or may certify the
4.21matter to the Office of Administrative Hearings for a full hearing before a compensation
4.22judge.
4.23 Sec. 7. Minnesota Statutes 2010, section 176.106, subdivision 5, is amended to read:
4.24 Subd. 5. Decision. Unless the matter is referred for other proceedings under
4.25subdivision 3, a written decision shall be issued by thecommissioner's designee
4.26commissioner or compensation judge determining all issues considered at the conference
4.27or if a conference was not held, based on the written submissions. Disputed issues of fact
4.28shall be determined by a preponderance of the evidence. The decision must be issued
4.29within 30 days after the close of the conference or if no conference was held, within 60
4.30days after receipt of the request for conference. The decision must include a statement
4.31indicating the right to request a de novo hearing before a compensation judge and how to
4.32initiate the request.
5.1 Sec. 8. Minnesota Statutes 2010, section 176.106, subdivision 6, is amended to read:
5.2 Subd. 6. Penalty. At a conference, if the insurer does not provide a specific reason
5.3for nonpayment of the items in dispute, thecommissioner's designee commissioner or
5.4compensation judge may assess a penalty of $300 payable to the commissioner for deposit
5.5in the assigned risk safety account, unless it is determined that the reason for the lack of
5.6specificity was the failure of the insurer, upon timely request, to receive information
5.7necessary to remedy the lack of specificity. This penalty is in addition to any penalty
5.8that may be applicable for nonpayment.
5.9 Sec. 9. Minnesota Statutes 2010, section 176.106, subdivision 7, is amended to read:
5.10 Subd. 7. Request for hearing. (a) Any party aggrieved by the decision of the
5.11commissioner's designee commissioner or compensation judge may request a formal
5.12hearing by filing the request with the commissioner and serving the request on all parties
5.13no later than 30 days after the decision. Requests shall be referred to the Office of
5.14Administrative Hearings for a de novo hearing before a compensation judge. When a
5.15compensation judge issued the administrative decision under subdivision 5, the formal
5.16de novo hearing must be held before a compensation judge other than the compensation
5.17judge who presided over the administrative conference.
5.18(b) Except where the only issues to be determined pursuant to this section involve
5.19liability for past treatment or services that will not affect entitlement to ongoing or future
5.20proposed treatment or services under section176.102 or
176.135 , the commissioner shall
5.21refer a timely request to the Office of Administrative Hearings within five working days
5.22after filing of the request and the hearing at the Office of Administrative Hearings must be
5.23held on the first date that all parties are available but not later than 60 days after the Office
5.24of Administrative Hearings receives the matter. Following the hearing, the compensation
5.25judge must issue the decision within 30 days. The decision of the compensation judge is
5.26appealable pursuant to section176.421 .
5.27 Sec. 10. Minnesota Statutes 2010, section 176.106, subdivision 8, is amended to read:
5.28 Subd. 8. Denial of primary liability. The commissioner does not have authority to
5.29make determinations relating to medical or rehabilitation benefits when there is a genuine
5.30dispute over whether the injury initially arose out of and in the course of employment,
5.31except as provided by section
176.305
5.32 Sec. 11. Minnesota Statutes 2010, section 176.106, subdivision 9, is amended to read:
6.1 Subd. 9. Subsequent causation issues. If initial liability for an injury has been
6.2admitted or established and an issue subsequently arises regarding causation between
6.3the employee's condition and the work injury, the commissioner or compensation judge
6.4may make the subsequent causation determination subject to de novo hearing by a
6.5compensation judgewith a right to review by the court of appeals, as provided in this
6.6chapter subdivision 7.
6.7 Sec. 12. Minnesota Statutes 2010, section 176.137, subdivision 2, is amended to read:
6.8 Subd. 2. Cost. The pecuniary liability of an employer for remodeling or alteration
6.9required by this section is limited to prevailing costs in the community for remodeling or
6.10alteration of that type. The costs of obtaining the architectural certification and supervision
6.11required by this section are included in the $75,000 limit in subdivision 5.
6.12 Sec. 13. Minnesota Statutes 2010, section 176.137, subdivision 4, is amended to read:
6.13 Subd. 4. Certification. (a) Except as provided in paragraph (b), no award may be
6.14made except upon the certification of a licensed architect to the division or Workers'
6.15Compensation Court of Appeals that the proposed alteration or remodeling of an existing
6.16residence or the building or purchase of a new or different residence is reasonably required
6.17for the purposes specified in subdivision 1. The Council on Disability shall advise the
6.18division or Workers' Compensation Court of Appeals as provided in section256.482,
6.19subdivision 5, clause (7) . The alteration or remodeling of an existing residence, or the
6.20building or purchase of a new home must be done under the supervision of a licensed
6.21architect relative to the specific needs to accommodate the disability.
6.22(b) Remodeling or alteration projects do not require an architect's certification and
6.23supervision if the project is:
6.24(1) approved by the Council on Disability;
6.25(2) performed by a residential building contractor or residential remodeler licensed
6.26under section 326B.805, subdivision 1; and
6.27(3) approved by a certified building official or certified accessibility specialist under
6.28section 326B.133, subdivision 3a, paragraphs (b) and (d), who states in writing that the
6.29proposed remodeling or alterations are reasonably required to enable the employee to move
6.30freely into and throughout the residence and to otherwise accommodate the disability.
6.31 Sec. 14. Minnesota Statutes 2010, section 176.137, subdivision 5, is amended to read:
6.32 Subd. 5. Limitation. An employee is limited to$60,000 $75,000 under this section
6.33for each personal injury.
7.1 Sec. 15. Minnesota Statutes 2010, section 176.238, subdivision 6, is amended to read:
7.2 Subd. 6. Expedited hearing before compensation judge. (a) A hearing before a
7.3compensation judge shall be held within 60 calendar days after the office receives the file
7.4from the commissioner if:
7.5(1) an objection to discontinuance has been filed under subdivision 4 within 60
7.6calendar days after the notice of discontinuance was filed and where no administrative
7.7conference has been held;
7.8(2) an objection to discontinuance has been filed under subdivision 4 within 60
7.9calendar days afterthe commissioner's an interim administrative decision under this
7.10section has been issued;
7.11(3) a petition to discontinue has been filed by the insurer in lieu of filing a notice of
7.12discontinuance; or
7.13(4) a petition to discontinue has been filed within 60 calendar days after the
7.14commissioner's interim administrative decision under this section has been issued.
7.15(b) If the petition or objection is filed later than the deadlines listed above, the
7.16expedited procedures in this section apply only where the employee is unemployed at the
7.17time of filing the objection and shows, to the satisfaction of the chief administrative judge,
7.18by sworn affidavit, that the failure to file the objection within the deadlines was due to some
7.19infirmity or incapacity of the employee or to circumstances beyond the employee's control.
7.20The hearing shall be limited to the issues raised by the notice or petition unless all parties
7.21agree to expanding the issues. If the issues are expanded, the time limits for hearing and
7.22issuance of a decision by the compensation judge under this subdivision shall not apply.
7.23(c) Once a hearing date has been set, a continuance of the hearing date will be
7.24granted only under the following circumstances:
7.25(1) the employer has agreed, in writing, to a continuation of the payment of benefits
7.26pending the outcome of the hearing; or
7.27(2) the employee has agreed, in a document signed by the employee, that benefits
7.28may be discontinued pending the outcome of the hearing.
7.29(d) Absent a clear showing of surprise at the hearing or the unexpected unavailability
7.30of a crucial witness, all evidence must be introduced at the hearing. If it is necessary
7.31to accept additional evidence or testimony after the scheduled hearing date, it must be
7.32submitted no later than 14 days following the hearing, unless the compensation judge, for
7.33good cause, determines otherwise.
7.34(e) When a compensation judge issued the interim administrative decision, the de
7.35novo hearing under paragraph (a), clauses (2) and (4), must be held before a compensation
7.36judge other than the compensation judge who presided over the administrative conference.
8.1The compensation judge shall issue a decision pursuant to this subdivision within 30 days
8.2following the close of the hearing record.
8.3 Sec. 16. Minnesota Statutes 2010, section 176.305, subdivision 1, is amended to read:
8.4 Subdivision 1. Hearings on petitions. The petitioner shall serve a copy of the
8.5petition on each adverse party personally or by first class mail. A clear copy suitable
8.6for imaging shall be filed with the commissioner together with an appropriate affidavit
8.7of service.When any petition has been filed with the Workers' Compensation Division,
8.8The commissioner shall, within ten days, referthe matter presented by the petition for a
8.9settlement conference under this section, for an administrative conference under section
8.10176.106, or for hearing all petitions involving issues over which the commissioner lacks
8.11jurisdiction to the office.
8.12 Sec. 17. Minnesota Statutes 2010, section 176.305, subdivision 1a, is amended to read:
8.13 Subd. 1a. Settlement and pretrial conferences; summary decision. The
8.14commissioner chief administrative law judge shall promptly assign the petition to a
8.15compensation judge under section 176.307, and shall schedule a settlement conference, if
8.16appropriate, within 60 days after receiving the petition before a compensation judge, to be
8.17held no later than 180 days after a claim petition was filed, or 45 days after a petition to
8.18discontinue, objection to discontinuance, or request for formal hearing was filed.
8.19All parties must appear at the settlement conference, either personally or by
8.20representative, must be prepared to discuss settlement of all issues, and must be prepared
8.21to discuss or present the information required by the joint rules of the division and the
8.22office. If a representative appears on behalf of a party, the representative must have
8.23authority to fully settle the matter. The parties shall serve and file a pretrial statement no
8.24fewer than five days before the settlement conference.
8.25If settlement is not reached, thepresiding officer chief administrative law judge shall
8.26schedule a hearing to be held within 90 days from the scheduled settlement conference.
8.27However, the hearing must be held earlier than 90 days from the scheduled settlement
8.28conference if this chapter requires an expedited hearing to be held at an earlier date. The
8.29hearing must be held before a compensation judge other than the compensation judge
8.30who conducted the settlement conference. The compensation judge assigned to hold the
8.31hearing may choose to conduct a pretrial conference to clarify the issues and evidence that
8.32will be presented at the hearing.
8.33Cancellations and continuations of proceedings are disfavored but may be granted
8.34upon the showing of good cause under section 176.341, subdivision 4.
9.1The compensation judge conducting the settlement conference may require the
9.2parties to present copies of all documentary evidence not previously filed and a summary
9.3of the evidence they will present at a formal hearing. If appropriate, a written summary
9.4decision shall be issued within ten days after the conference stating the issues and a
9.5determination of each issue. If a party fails to appear at the conference, all issues may
9.6be determined contrary to the absent party's interest, provided the party in attendance
9.7presents a prima facie case.
9.8The summary decision is final unless a written request for a formal hearing is served
9.9on all parties and filed with the commissioner within 30 days after the date of service
9.10and filing of the summary decision. Within ten days after receipt of the request, the
9.11commissioner shall certify the matter to the office for a de novo hearing. In proceedings
9.12under section176.2615 , the summary decision is final and not subject to appeal or de
9.13novo proceedings.
9.14 Sec. 18. Minnesota Statutes 2010, section 176.307, is amended to read:
9.15176.307 COMPENSATION JUDGES; BLOCK SYSTEM.
9.16The chief administrative law judgemust may assign workers' compensation cases to
9.17compensation judges using a block system type of assignment that, among other things,
9.18ensures that a case will remain with the same judge from commencement to conclusion
9.19unless, except that the judge is must be removed from the case by exercise of when:
9.20(1) a party exercises a legal rightof a party or by incapacity to do so;
9.21(2) the judge is incapacitated or is otherwise unable to hold a hearing; or
9.22(3) assignment of a different judge is required by section 176.106, subdivision
9.237; 176.238, subdivision 6; 176.305, subdivision 1a; or the Minnesota Code of Judicial
9.24Conduct.
9.25The block systemmust be the principal shall be the preferred means of assigning
9.26cases, but it may be supplemented by other systems of case assignment to ensure that
9.27cases are timely decided.
9.28 Sec. 19. Minnesota Statutes 2010, section 176.341, subdivision 4, is amended to read:
9.29 Subd. 4. Continuances. Only the chief administrative law judge or designee, on a
9.30showing of good cause, may grant a continuance of a hearing at the office. Except in cases
9.31of emergency or other good cause shown, any request for a continuance must be signed by
9.32both the party and the attorney seeking the continuance.
9.33A continuance of a hearing will be granted only upon a showing of good cause.
9.34Good cause is established when the underlying eventuality is unforeseen, is not due to
10.1lack of preparation, is relevant, is brought to the chief administrative law judge's attention
10.2in a timely manner and does not prejudice the adversary.
10.3Continuances will not be granted for the reason that an attorney for one of the parties
10.4has scheduled a vacation for the date set for the hearing unless the attorney has, prior to
10.5the setting of the hearing date, notified the office of the unavailable dates.
10.6Continuances which are requested during the course of a hearing are subject to the
10.7same standards but may be granted or denied by the compensation judge assigned to the
10.8hearing. Continuances of prehearing or settlement conferencesat the department or at the
10.9office are subject to the same standards but may be granted or denied by a compensation
10.10judge, the calendar judge, or other presiding officer assigned to the prehearing or
10.11settlement conference. Cancellation of settlement conferences shall be granted if all
10.12parties agree to cancellation.
10.13 Sec. 20. MEDICAL FEE REVIEW; WHOLESALE ACQUISITION COST
10.14STANDARD.
10.15The commissioner of labor and industry shall replace the "average wholesale price"
10.16standard in Minnesota Rules, part 5221.4070, with the "wholesale acquisition cost"
10.17standard. The wholesale acquisition cost must be increased by the percentage necessary
10.18to establish maximum fees that are the same as the maximum fees currently provided
10.19under that part. The commissioner shall use the procedures in Minnesota Statutes, section
10.2014.386, paragraph (a), to amend Minnesota Rules, part 5221.4070, for this purpose, except
10.21that the amendments are not subject to expiration under section 14.386, paragraph (b).
10.22This section does not limit the commissioner's existing authority under this chapter to
10.23further amend the rules using the regular rule adoption procedures in chapter 14, and
10.24shall not be considered a new grant of rulemaking authority for purposes of Minnesota
10.25Statutes, section 14.125.
10.26 Sec. 21. ONETIME APPROPRIATION FOR CASE MANAGEMENT SYSTEM.
10.27$600,000 is appropriated to the commissioner of labor and industry from the special
10.28compensation fund for the purposes of implementing a case management system and
10.29electronic filing system at the Office of Administrative Hearings. This is a onetime
10.30appropriation. Funds appropriated in this section are available only to the extent requested
10.31by the chief administrative law judge of the Office of Administrative Hearings. The
10.32review panel convened by the Office of Administrative Hearings to review any proposals
10.33for a case management system and electronic filing system shall include one labor
11.1representative and one business representative serving pursuant to Minnesota Statutes,
11.2section 175.007, subdivision 1, paragraph (b) or (c).
11.3 Sec. 22. REVISOR'S INSTRUCTION.
11.4The revisor of statutes shall change the phrase "commissioner's decision" to "interim
11.5administrative decision" wherever it appears in Minnesota Statutes, sections 176.238
11.6and 176.239.
11.7 Sec. 23. EFFECTIVE DATE.
11.8Sections 1 to 11 and 15 to 21 are effective August 1, 2011. Sections 12, 13, and 14
11.9are effective the day following final enactment.
1.3Compensation Advisory Council; changing certain duties, benefits, and
1.4requirements; requiring rulemaking; appropriating money;amending Minnesota
1.5Statutes 2010, sections 14.48, subdivisions 2, 3; 14.49; 14.50; 176.106,
1.6subdivisions 1, 3, 5, 6, 7, 8, 9; 176.137, subdivisions 2, 4, 5; 176.238, subdivision
1.76; 176.305, subdivisions 1, 1a; 176.307; 176.341, subdivision 4.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 14.48, subdivision 2, is amended to read:
1.10 Subd. 2. Chief administrative law judge. The office shall be under the direction
1.11of a chief administrative law judge who shall be learned in the law and appointed by the
1.12governor, with the advice and consent of the senate, for a term ending on June 30 of the
1.13sixth calendar year after appointment. Senate confirmation of the chief administrative law
1.14judge shall be as provided by section
1.15cases and shall appoint additional administrative law judges and compensation judges to
1.16serve in the office as necessary to fulfill the duties
1.17the Office of Administrative Hearings. The chief administrative law judge may delegate
1.18to a subordinate employee the exercise of a specified statutory power or duty as deemed
1.19advisable, subject to the control of the chief administrative law judge. Every delegation
1.20must be by written order filed with the secretary of state. The chief administrative law
1.21judge is subject to the provisions of the Minnesota Constitution, article VI, section 6, the
1.22jurisdiction of the Board on Judicial Standards, and the provisions of the Code of Judicial
1.23Conduct.
1.24 Sec. 2. Minnesota Statutes 2010, section 14.48, subdivision 3, is amended to read:
2.1 Subd. 3. Administrative law judges and compensation judges. (a) All
2.2administrative law judges and compensation judges shall be in the classified service
2.3except that the chief administrative law judge shall be in the unclassified service, but
2.4may be removed only for cause.
2.5(b) All administrative law judges and workers' compensation judges must be learned
2.6in the law and must be free of any political or economic association that would impair
2.7their ability to function in a fair and impartial manner. Administrative law judges shall
2.8have demonstrated knowledge of administrative procedures and workers' compensation
2.9judges shall have demonstrated knowledge of workers' compensation laws.
2.10(c)
2.11
2.12
2.13
2.14
2.15hearings, or other workers' compensation proceedings within the jurisdiction of the Office
2.16of Administrative Hearings under chapter 176, unless the proceeding is required to be
2.17conducted under chapter 14. Conducting hearings in the
2.18does not affect
2.19class established pursuant to section
2.20administrative law judge shall annually notify the Department of Management and Budget
2.21of the amount of credit payable to the workers' compensation special fund for time spent
2.22by workers' compensation judges on noncompensation proceedings.
2.23(d) Administrative law judges and compensation judges are subject to the provisions
2.24of the Code of Judicial Conduct. Administrative law and compensation judges may,
2.25however, serve as a member of a governmental board when so directed by the legislature.
2.26The chief administrative law judge shall provide training to administrative law and
2.27compensation judges about the requirements of the code and shall apply the provisions
2.28of the code to their actions. Only administrative law judges serving as temporary judges
2.29under a written contract are considered to be part-time judges for purposes of the code.
2.30Reports required to be filed by the code must be filed with the chief administrative law
2.31judge. The chief administrative law judge shall apply the provisions of the Code of Judicial
2.32Conduct, to the extent applicable, to the other administrative law and compensation judges
2.33in a manner consistent with interpretations made by the Board on Judicial Standards.
2.34The chief administrative law judge shall follow the procedural requirements of the
2.35commissioner's plan for state employees if any adverse personnel action is taken based in
2.36whole or in part as a violation of the Code of Judicial Conduct.
3.1(e) In addition to other duties provided by law, workers' compensation and
3.2administrative law judges may mediate, arbitrate, or take other appropriate action on
3.3matters referred to the Office of Administrative Hearings by any member of the federal or
3.4state judicial branch or by the Workers' Compensation Court of Appeals.
3.5 Sec. 3. Minnesota Statutes 2010, section 14.49, is amended to read:
3.614.49 TEMPORARY ADMINISTRATIVE LAW JUDGES.
3.7When regularly appointed administrative law judges
3.8available, the chief administrative law judge may contract with qualified individuals to
3.9serve as administrative law judges
3.10law judges
3.11judges must be employees of the state, except that when all available regularly appointed
3.12compensation judges are disqualified from a specific case under the Code of Judicial
3.13Conduct, the chief administrative law judge may contract with a workers' compensation
3.14attorney or former workers' compensation judge to serve as a compensation judge for
3.15that case.
3.16 Sec. 4. Minnesota Statutes 2010, section 14.50, is amended to read:
3.1714.50 HEARINGS BEFORE ADMINISTRATIVE LAW JUDGE.
3.18All hearings of state agencies required to be conducted under this chapter shall be
3.19conducted by an administrative law judge assigned by the chief administrative law judge
3.20or by a workers' compensation judge assigned by the chief administrative law judge as
3.21provided in section
3.22be conducted by a compensation judge assigned by the chief administrative law judge
3.23
3.24
3.25conduct
3.26to utilize personnel having expertise in the subject to be dealt with in the hearing. It shall
3.27be the duty of the judge to: (1) advise an agency as to the location at which and time during
3.28which a hearing should be held so as to allow for participation by all affected interests; (2)
3.29conduct only hearings for which proper notice has been given; (3) see to it that all hearings
3.30are conducted in a fair and impartial manner. Except in the case of workers' compensation
3.31hearings involving claims for compensation it shall also be the duty of the judge to make a
3.32report on each proposed agency action in which the administrative law judge functioned in
3.33an official capacity, stating findings of fact and conclusions and recommendations, taking
3.34notice of the degree to which the agency has (i) documented its statutory authority to take
4.1the proposed action, (ii) fulfilled all relevant procedural requirements of law or rule, and
4.2(iii) in rulemaking proceedings, demonstrated the need for and reasonableness of its
4.3proposed action with an affirmative presentation of facts.
4.4 Sec. 5. Minnesota Statutes 2010, section 176.106, subdivision 1, is amended to read:
4.5 Subdivision 1. Scope. All determinations by the commissioner or
4.6
4.8For medical disputes under sections
4.9
4.10and issue decisions and orders under this section if the amount in dispute at the time the
4.11medical request is filed is $7,500 or less.
4.12 Sec. 6. Minnesota Statutes 2010, section 176.106, subdivision 3, is amended to read:
4.13 Subd. 3. Conference. The matter shall be scheduled for an administrative
4.14conference within 60 days after receipt of the request for a conference. Notice of the
4.15conference shall be served on all parties no later than 14 days prior to the conference,
4.16unless the commissioner or compensation judge determines that a conference shall not be
4.17held. The commissioner or compensation judge may order an administrative conference
4.18before the commissioner's designee whether or not a request for conference is filed.
4.19The commissioner or compensation judge may refuse to hold an administrative
4.20conference and refer the matter for a settlement or pretrial conference or may certify the
4.21matter to the Office of Administrative Hearings for a full hearing before a compensation
4.22judge.
4.23 Sec. 7. Minnesota Statutes 2010, section 176.106, subdivision 5, is amended to read:
4.24 Subd. 5. Decision. Unless the matter is referred for other proceedings under
4.25subdivision 3, a written decision shall be issued by the
4.26commissioner or compensation judge determining all issues considered at the conference
4.27or if a conference was not held, based on the written submissions. Disputed issues of fact
4.28shall be determined by a preponderance of the evidence. The decision must be issued
4.29within 30 days after the close of the conference or if no conference was held, within 60
4.30days after receipt of the request for conference. The decision must include a statement
4.31indicating the right to request a de novo hearing before a compensation judge and how to
4.32initiate the request.
5.1 Sec. 8. Minnesota Statutes 2010, section 176.106, subdivision 6, is amended to read:
5.2 Subd. 6. Penalty. At a conference, if the insurer does not provide a specific reason
5.3for nonpayment of the items in dispute, the
5.4compensation judge may assess a penalty of $300 payable to the commissioner for deposit
5.5in the assigned risk safety account, unless it is determined that the reason for the lack of
5.6specificity was the failure of the insurer, upon timely request, to receive information
5.7necessary to remedy the lack of specificity. This penalty is in addition to any penalty
5.8that may be applicable for nonpayment.
5.9 Sec. 9. Minnesota Statutes 2010, section 176.106, subdivision 7, is amended to read:
5.10 Subd. 7. Request for hearing. (a) Any party aggrieved by the decision of the
5.11
5.12hearing by filing the request with the commissioner and serving the request on all parties
5.13no later than 30 days after the decision. Requests shall be referred to the Office of
5.14Administrative Hearings for a de novo hearing before a compensation judge. When a
5.15compensation judge issued the administrative decision under subdivision 5, the formal
5.16de novo hearing must be held before a compensation judge other than the compensation
5.17judge who presided over the administrative conference.
5.18(b) Except where the only issues to be determined pursuant to this section involve
5.19liability for past treatment or services that will not affect entitlement to ongoing or future
5.20proposed treatment or services under section
5.21refer a timely request to the Office of Administrative Hearings within five working days
5.22after filing of the request and the hearing at the Office of Administrative Hearings must be
5.23held on the first date that all parties are available but not later than 60 days after the Office
5.24of Administrative Hearings receives the matter. Following the hearing, the compensation
5.25judge must issue the decision within 30 days. The decision of the compensation judge is
5.26appealable pursuant to section
5.27 Sec. 10. Minnesota Statutes 2010, section 176.106, subdivision 8, is amended to read:
5.28 Subd. 8. Denial of primary liability. The commissioner does not have authority to
5.29make determinations relating to medical or rehabilitation benefits when there is a genuine
5.30dispute over whether the injury initially arose out of and in the course of employment
5.31
5.32 Sec. 11. Minnesota Statutes 2010, section 176.106, subdivision 9, is amended to read:
6.1 Subd. 9. Subsequent causation issues. If initial liability for an injury has been
6.2admitted or established and an issue subsequently arises regarding causation between
6.3the employee's condition and the work injury, the commissioner or compensation judge
6.4may make the subsequent causation determination subject to de novo hearing by a
6.5compensation judge
6.6
6.7 Sec. 12. Minnesota Statutes 2010, section 176.137, subdivision 2, is amended to read:
6.8 Subd. 2. Cost. The pecuniary liability of an employer for remodeling or alteration
6.9required by this section is limited to prevailing costs in the community for remodeling or
6.10alteration of that type. The costs of obtaining the architectural certification and supervision
6.11required by this section are included in the $75,000 limit in subdivision 5.
6.12 Sec. 13. Minnesota Statutes 2010, section 176.137, subdivision 4, is amended to read:
6.13 Subd. 4. Certification. (a) Except as provided in paragraph (b), no award may be
6.14made except upon the certification of a licensed architect to the division or Workers'
6.15Compensation Court of Appeals that the proposed alteration or remodeling of an existing
6.16residence or the building or purchase of a new or different residence is reasonably required
6.17for the purposes specified in subdivision 1. The Council on Disability shall advise the
6.18division or Workers' Compensation Court of Appeals as provided in section
6.19subdivision 5, clause (7)
6.20building or purchase of a new home must be done under the supervision of a licensed
6.21architect relative to the specific needs to accommodate the disability.
6.22(b) Remodeling or alteration projects do not require an architect's certification and
6.23supervision if the project is:
6.24(1) approved by the Council on Disability;
6.25(2) performed by a residential building contractor or residential remodeler licensed
6.26under section 326B.805, subdivision 1; and
6.27(3) approved by a certified building official or certified accessibility specialist under
6.28section 326B.133, subdivision 3a, paragraphs (b) and (d), who states in writing that the
6.29proposed remodeling or alterations are reasonably required to enable the employee to move
6.30freely into and throughout the residence and to otherwise accommodate the disability.
6.31 Sec. 14. Minnesota Statutes 2010, section 176.137, subdivision 5, is amended to read:
6.32 Subd. 5. Limitation. An employee is limited to
6.33for each personal injury.
7.1 Sec. 15. Minnesota Statutes 2010, section 176.238, subdivision 6, is amended to read:
7.2 Subd. 6. Expedited hearing before compensation judge. (a) A hearing before a
7.3compensation judge shall be held within 60 calendar days after the office receives the file
7.4from the commissioner if:
7.5(1) an objection to discontinuance has been filed under subdivision 4 within 60
7.6calendar days after the notice of discontinuance was filed and where no administrative
7.7conference has been held;
7.8(2) an objection to discontinuance has been filed under subdivision 4 within 60
7.9calendar days after
7.10section has been issued;
7.11(3) a petition to discontinue has been filed by the insurer in lieu of filing a notice of
7.12discontinuance; or
7.13(4) a petition to discontinue has been filed within 60 calendar days after the
7.14
7.15(b) If the petition or objection is filed later than the deadlines listed above, the
7.16expedited procedures in this section apply only where the employee is unemployed at the
7.17time of filing the objection and shows, to the satisfaction of the chief administrative judge,
7.18by sworn affidavit, that the failure to file the objection within the deadlines was due to some
7.19infirmity or incapacity of the employee or to circumstances beyond the employee's control.
7.20The hearing shall be limited to the issues raised by the notice or petition unless all parties
7.21agree to expanding the issues. If the issues are expanded, the time limits for hearing and
7.22issuance of a decision by the compensation judge under this subdivision shall not apply.
7.23(c) Once a hearing date has been set, a continuance of the hearing date will be
7.24granted only under the following circumstances:
7.25(1) the employer has agreed, in writing, to a continuation of the payment of benefits
7.26pending the outcome of the hearing; or
7.27(2) the employee has agreed, in a document signed by the employee, that benefits
7.28may be discontinued pending the outcome of the hearing.
7.29(d) Absent a clear showing of surprise at the hearing or the unexpected unavailability
7.30of a crucial witness, all evidence must be introduced at the hearing. If it is necessary
7.31to accept additional evidence or testimony after the scheduled hearing date, it must be
7.32submitted no later than 14 days following the hearing, unless the compensation judge, for
7.33good cause, determines otherwise.
7.34(e) When a compensation judge issued the interim administrative decision, the de
7.35novo hearing under paragraph (a), clauses (2) and (4), must be held before a compensation
7.36judge other than the compensation judge who presided over the administrative conference.
8.1The compensation judge shall issue a decision pursuant to this subdivision within 30 days
8.2following the close of the hearing record.
8.3 Sec. 16. Minnesota Statutes 2010, section 176.305, subdivision 1, is amended to read:
8.4 Subdivision 1. Hearings on petitions. The petitioner shall serve a copy of the
8.5petition on each adverse party personally or by first class mail. A clear copy suitable
8.6for imaging shall be filed with the commissioner together with an appropriate affidavit
8.7of service.
8.8The commissioner shall, within ten days, refer
8.9
8.10
8.11jurisdiction to the office.
8.12 Sec. 17. Minnesota Statutes 2010, section 176.305, subdivision 1a, is amended to read:
8.13 Subd. 1a. Settlement and pretrial conferences; summary decision. The
8.14
8.15compensation judge under section 176.307, and shall schedule a settlement conference
8.16
8.17held no later than 180 days after a claim petition was filed, or 45 days after a petition to
8.18discontinue, objection to discontinuance, or request for formal hearing was filed.
8.19All parties must appear at the settlement conference, either personally or by
8.20representative, must be prepared to discuss settlement of all issues, and must be prepared
8.21to discuss or present the information required by the joint rules of the division and the
8.22office. If a representative appears on behalf of a party, the representative must have
8.23authority to fully settle the matter. The parties shall serve and file a pretrial statement no
8.24fewer than five days before the settlement conference.
8.25If settlement is not reached, the
8.26schedule a hearing to be held within 90 days from the scheduled settlement conference.
8.27However, the hearing must be held earlier than 90 days from the scheduled settlement
8.28conference if this chapter requires an expedited hearing to be held at an earlier date. The
8.29hearing must be held before a compensation judge other than the compensation judge
8.30who conducted the settlement conference. The compensation judge assigned to hold the
8.31hearing may choose to conduct a pretrial conference to clarify the issues and evidence that
8.32will be presented at the hearing.
8.33Cancellations and continuations of proceedings are disfavored but may be granted
8.34upon the showing of good cause under section 176.341, subdivision 4.
9.1The compensation judge conducting the settlement conference may require the
9.2parties to present copies of all documentary evidence not previously filed and a summary
9.3of the evidence they will present at a formal hearing. If appropriate, a written summary
9.4decision shall be issued within ten days after the conference stating the issues and a
9.5determination of each issue. If a party fails to appear at the conference, all issues may
9.6be determined contrary to the absent party's interest, provided the party in attendance
9.7presents a prima facie case.
9.8The summary decision is final unless a written request for a formal hearing is served
9.9on all parties and filed with the commissioner within 30 days after the date of service
9.10and filing of the summary decision. Within ten days after receipt of the request, the
9.11commissioner shall certify the matter to the office for a de novo hearing. In proceedings
9.12under section
9.13novo proceedings.
9.14 Sec. 18. Minnesota Statutes 2010, section 176.307, is amended to read:
9.15176.307 COMPENSATION JUDGES; BLOCK SYSTEM.
9.16The chief administrative law judge
9.17compensation judges using a block system type of assignment that, among other things,
9.18ensures that a case will remain with the same judge from commencement to conclusion
9.19
9.20(1) a party exercises a legal right
9.21(2) the judge is incapacitated or is otherwise unable to hold a hearing; or
9.22(3) assignment of a different judge is required by section 176.106, subdivision
9.237; 176.238, subdivision 6; 176.305, subdivision 1a; or the Minnesota Code of Judicial
9.24Conduct.
9.25The block system
9.26cases, but it may be supplemented by other systems of case assignment to ensure that
9.27cases are timely decided.
9.28 Sec. 19. Minnesota Statutes 2010, section 176.341, subdivision 4, is amended to read:
9.29 Subd. 4. Continuances. Only the chief administrative law judge or designee, on a
9.30showing of good cause, may grant a continuance of a hearing at the office. Except in cases
9.31of emergency or other good cause shown, any request for a continuance must be signed by
9.32both the party and the attorney seeking the continuance.
9.33A continuance of a hearing will be granted only upon a showing of good cause.
9.34Good cause is established when the underlying eventuality is unforeseen, is not due to
10.1lack of preparation, is relevant, is brought to the chief administrative law judge's attention
10.2in a timely manner and does not prejudice the adversary.
10.3Continuances will not be granted for the reason that an attorney for one of the parties
10.4has scheduled a vacation for the date set for the hearing unless the attorney has, prior to
10.5the setting of the hearing date, notified the office of the unavailable dates.
10.6Continuances which are requested during the course of a hearing are subject to the
10.7same standards but may be granted or denied by the compensation judge assigned to the
10.8hearing. Continuances of prehearing or settlement conferences
10.9office are subject to the same standards but may be granted or denied by a compensation
10.10judge, the calendar judge, or other presiding officer assigned to the prehearing or
10.11settlement conference. Cancellation of settlement conferences shall be granted if all
10.12parties agree to cancellation.
10.13 Sec. 20. MEDICAL FEE REVIEW; WHOLESALE ACQUISITION COST
10.14STANDARD.
10.15The commissioner of labor and industry shall replace the "average wholesale price"
10.16standard in Minnesota Rules, part 5221.4070, with the "wholesale acquisition cost"
10.17standard. The wholesale acquisition cost must be increased by the percentage necessary
10.18to establish maximum fees that are the same as the maximum fees currently provided
10.19under that part. The commissioner shall use the procedures in Minnesota Statutes, section
10.2014.386, paragraph (a), to amend Minnesota Rules, part 5221.4070, for this purpose, except
10.21that the amendments are not subject to expiration under section 14.386, paragraph (b).
10.22This section does not limit the commissioner's existing authority under this chapter to
10.23further amend the rules using the regular rule adoption procedures in chapter 14, and
10.24shall not be considered a new grant of rulemaking authority for purposes of Minnesota
10.25Statutes, section 14.125.
10.26 Sec. 21. ONETIME APPROPRIATION FOR CASE MANAGEMENT SYSTEM.
10.27$600,000 is appropriated to the commissioner of labor and industry from the special
10.28compensation fund for the purposes of implementing a case management system and
10.29electronic filing system at the Office of Administrative Hearings. This is a onetime
10.30appropriation. Funds appropriated in this section are available only to the extent requested
10.31by the chief administrative law judge of the Office of Administrative Hearings. The
10.32review panel convened by the Office of Administrative Hearings to review any proposals
10.33for a case management system and electronic filing system shall include one labor
11.1representative and one business representative serving pursuant to Minnesota Statutes,
11.2section 175.007, subdivision 1, paragraph (b) or (c).
11.3 Sec. 22. REVISOR'S INSTRUCTION.
11.4The revisor of statutes shall change the phrase "commissioner's decision" to "interim
11.5administrative decision" wherever it appears in Minnesota Statutes, sections 176.238
11.6and 176.239.
11.7 Sec. 23. EFFECTIVE DATE.
11.8Sections 1 to 11 and 15 to 21 are effective August 1, 2011. Sections 12, 13, and 14
11.9are effective the day following final enactment.
