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BUSINESS & ECONOMIC DEVELOPMENT WORKERS ' COMPENSATION. REFORM Following months of negotiations and compromises, a workers' compensation reform bill became a reality in the final hours of the 1983 session. The reform package was designed to reduce costs in a variety of ways: *.The Commissioner of Labor/Industry is forbidden to ~rant the current premium increase request; * Documented pre-existing injuries causing permanent dis- abilities will not be compensated as one with a new work- related injury. Payment for permanent partials will be reduced accordingly; * The Commissioner is empowered to develop a new schedule of impairment ratings based on the whole body concept that will reflect the philosophy of a two-tiered system that pays lower benefits for the less seriouB injuries and higher benefits for the most severe injuries. Those with lesser injuries will receive upon return to work an impairment award which cgmpen- sates for loss of bodily function. Workers so severely injured that they are unable to return to a job will be entitled to economic recovery benefits that combine compensation for wage loss and loss of bodily function. All loss of bodily function will be based on a percentage of the whole body (100%). * Other changes are made to promote an earlier return to work and earlier entry into rehabilitation programs where needed; * Health care providers will be more closely supervised to ensure cost and quality control'; * The opportunity for legal action is lessened through more effective mediation. The state competitive insurance fund passed as a separate bill. The fund will help Minnesota's small businesses by offering lower premiums for workers' comp coverage. ECONOMIC DEVELOPMENT INCENTIVES ...A company which TRANSFERS TECHNOLOGY to a qualified small business ~ill be eligible for an income tax credit equal to 30 percent of the net value of technology. ...A 30 percent income tax credit will be granted for EQUITY INVESTMENTS in a qualified small business located in an Enterprise ~one. ...Economically distressed communities may apply for designation as an ENTERPRISE ZONE. Within such an area, special state tax incentives may be selected by the community to offer to new and expanding businesses. (Border cities do not have to apply for the designation and may offer some incentives to established businesses as well as new ones.) *The applications must include a development plan and the community's selection of tax incentives it plans to offer 'busines. ses. Two to five zones will be designated during each of the next two years (not - 3 -