.................... moves to amend H.F. No. .... as follows:
Page 3, delete section 2 and insert:
"Sec. 2. Minnesota Statutes 2012, section 176.129, subdivision 2a, is amended to read:
Subd. 2a. Payments to fund.
(a) On or before April 1 of each year, all self-insured
employers shall report paid indemnity losses and insurers shall report paid indemnity
losses and standard workers' compensation premium in the form and manner prescribed
by the commissioner. On June 1 of each year, the commissioner shall determine the
total amount needed to pay all estimated liabilities, including administrative expenses,
of the special compensation fund for the following fiscal year. The commissioner shall
assess this amount against self-insured employers and insurers. The total amount of the
assessment must be allocated between self-insured employers and insured employers
based on paid indemnity losses for the preceding calendar year, as provided by paragraph
(b). The method of assessing self-insured employers must be based on paid indemnity
losses, as provided by paragraph (c). The method of assessing insured employers is based
on standard workers' compensation premium, as provided by paragraph (c). Each insurer
shall collect the assessment through a policyholder surcharge as provided by paragraph
(d). On or before June 30 of each year, the commissioner shall provide notification to each
self-insured employer and insurer of amounts due. Each self-insured employer and each
insurer shall pay at least one-half of the amount due to the commissioner for deposit into
the special compensation fund on or before August 1 of the same calendar year. The
remaining balance is due on February 1 of the following calendar year. Each insurer must
pay the full amount due as stated in the commissioner's notification, regardless of the
amount the insurer actually collects from the
(b) The portion of the total assessment that is allocated to self-insured employers
is the proportion that paid indemnity losses made by all self-insured employers bore to
the total paid indemnity losses made by all self-insured employers and insured employers
during the preceding calendar year. The portion of the total assessment that is allocated
to insured employers is the proportion that paid indemnity losses made on behalf of
all insured employers bore to the total paid indemnity losses made by all self-insured
employers and insured employers during the preceding calendar year.
(c) The portion of the total assessment allocated to self-insured employers that
shall be paid by each self-insured employer must be based upon paid indemnity losses
made by that self-insured employer during the preceding calendar year. The portion of
the total assessment allocated to insured employers that is paid by each insurer must be
based on standard workers' compensation premium earned in the state by that insurer
calendar year. If the current calendar year earned standard
2.10workers' compensation premium is not available, the commissioner shall estimate the
2.11portion of the total assessment allocated to insured employers that is paid by each insurer
2.12using the earned standard workers' compensation premium from the preceding calendar
2.13year. The commissioner shall then perform a reconciliation and final determination of
2.14the portion of the total assessment to be paid by each insurer when the earned standard
2.15workers' compensation premium for the current calendar year is calculable, but the final
2.16determination must not be made after December 1 of the following calendar year.
employer who has ceased to be self-insured shall continue to be liable for assessments
based on paid indemnity losses arising out of injuries occurring during periods when the
employer was self-insured, unless the self-insured employer has purchased a replacement
policy covering those losses. An insurer who assumes a self-insured employer's obligation
under a replacement policy shall separately report and pay assessments based on indemnity
losses paid by the insurer under the replacement policy. The replacement policy may
provide for reimbursement of the assessment to the insurer by the self-insured employer.
(d) Insurers shall collect the assessments from their insured employers through
a surcharge based on standard workers' compensation premium for each employer.
Assessments when collected do not constitute an element of loss for the purpose of
establishing rates for workers' compensation insurance but for the purpose of collection
are treated as separate costs imposed on insured employers. The
surcharge is included in the definition of gross premium as defined in section
2.30for premium tax purposes
. An insurer may cancel a policy for nonpayment of the
surcharge is excluded from the
definition of premium for all other purposes,
except as otherwise provided in this paragraph.
(e) For purposes of this section, the workers' compensation assigned risk plan
established under section
, shall report and pay assessments on standard workers'
compensation premium in the same manner as an insurer.
3.1EFFECTIVE DATE.This section is effective for assessments due under Minnesota
3.2Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
3.31, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
3.4section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.
Sec. 3. Minnesota Statutes 2012, section 176.129, subdivision 7, is amended to read:
Subd. 7. Refunds.
In case deposit is or has been made pursuant to subdivision
2a by mistake or inadvertence, or under circumstances that justice requires a refund,
the commissioner of management and budget is authorized to refund the deposit under
order of the commissioner, a compensation judge, the Workers' Compensation Court of
Appeals, or a district court. Claims for refunds must be submitted to the commissioner
within three years of the
date of reconciliation and final determination
3.12under subdivision 2a
. There is appropriated to the commissioner from the fund an amount
sufficient to make the refund and payment.
3.14EFFECTIVE DATE.This section is effective for assessments due under Minnesota
3.15Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
3.161, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
3.17section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.
Renumber the sections in sequence and correct the internal references
Amend the title accordingly