HB 419: "An Act relating to the weekly rate of compensation and minimum and maximum compensation rates for workers' compensation; specifying components of a workers' compensation reemployment plan; adjusting workers' compensation benefits for permanent partial impairment, for reemployment plans, for rehabilitation benefits, for widows, widowers, and orphans, and for funerals; relating to permanent total disability of an employee receiving rehabilitation benefits; relating to calculation of gross weekly earnings for workers' compensation benefits for seasonal and temporary workers and for workers with overtime or premium pay; setting time limits for requesting a hearing on claims for workers' compensation, for selecting a rehabilitation specialist, and for payment of medical bills; relating to termination and to waiver of rehabilitation benefits, obtaining medical releases, and resolving discovery disputes relating to workers' compensation; setting an interest rate for late payments of workers' compensation; providing for updating the workers' compensation medical fee schedule; and providing for an effective date."
00HOUSE BILL NO. 419 01 "An Act relating to the weekly rate of compensation and minimum and maximum 02 compensation rates for workers' compensation; specifying components of a workers' 03 compensation reemployment plan; adjusting workers' compensation benefits for 04 permanent partial impairment, for reemployment plans, for rehabilitation benefits, 05 for widows, widowers, and orphans, and for funerals; relating to permanent total 06 disability of an employee receiving rehabilitation benefits; relating to calculation 07 of gross weekly earnings for workers' compensation benefits for seasonal and 08 temporary workers and for workers with overtime or premium pay; setting time 09 limits for requesting a hearing on claims for workers' compensation, for selecting 10 a rehabilitation specialist, and for payment of medical bills; relating to termination 11 and to waiver of rehabilitation benefits, obtaining medical releases, and resolving 12 discovery disputes relating to workers' compensation; setting an interest rate for 13 late payments of workers' compensation; providing for updating the workers' 14 compensation medical fee schedule; and providing for an effective date."
01 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 02 * Section 1. The uncodified law of the State of Alaska is amended by adding a new 03 section to read: 04 INTENT. It is the intent of the legislature that 05 (1) AS 23.30 be interpreted so as to ensure the quick, efficient, fair, and 06 predictable delivery of indemnity and medical benefits to injured workers at a reasonable cost 07 to the employers who are subject to the provisions of AS 23.30; 08 (2) AS 23.30 not be construed by the courts in favor of any party; 09 (3) workers' compensation cases be decided on the merits, except when 10 otherwise provided by statute; 11 (4) increases in benefits be tied to the state average weekly wage so as to more 12 fairly compensate injured workers and that the benefit rate in effect at the time of injury 13 remain the benefit rate for the life of the claim without regard to any changes that may occur 14 in the state average weekly wage subsequent to the year of injury; 15 (5) AS 23.30.041 be amended to clarify existing language and to mandate 16 compliance by the board, the reemployment administrator, and the parties with the deadlines 17 in AS 23.30.041; 18 (6) vocational rehabilitation clearly be a voluntary process that allows 19 claimants to waive their rights to receive reemployment benefits; 20 (7) claimants be entitled to permanent impairment benefits and reduced 21 compensation while involved in the reemployment process so as to encourage injured workers 22 to complete that process as quickly as possible and return to the workplace in an expeditious 23 and efficient manner; 24 (8) claimants provide releases of information that allow employers and insurers 25 and their agents to obtain promptly information needed to investigate and adjust claims; 26 (9) medical information relevant to a claim be discoverable and be promptly 27 provided; and 28 (10) the discovery process be improved to encourage the quick and efficient 29 resolution of discovery disputes under AS 23.30. 30 * Sec. 2. AS 23.30.041(g) is amended to read: 31 (g) Within 15 [10] days after the employee receives the administrator's
01 notification of eligibility for benefits, an employee who desires to use these benefits 02 shall give written notice to the employer of the employee's selection of a rehabilitation 03 specialist who shall provide a complete reemployment benefits plan. Unreasonable 04 failure to give notice required by this subsection constitutes noncooperation under 05 (n) of this section. If the employer disagrees with the employee's choice of 06 rehabilitation specialist to develop the plan and the disagreement cannot be resolved, 07 then the administrator shall assign a rehabilitation specialist. The employer and 08 employee each have one right of refusal of a rehabilitation specialist. 09 * Sec. 3. AS 23.30.041(h) is amended to read: 10 (h) Within 90 days after the rehabilitation specialist's selection under (g) of 11 this section, the reemployment plan must be formulated and approved. The 12 reemployment plan must require continuous participation by the employee and 13 must maximize the usage of the employee's transferrable skills. The reemployment 14 plan must include at least the following: 15 (1) a determination of the occupational goal in the labor market; 16 (2) an inventory of the employee's technical skills, transferrable skills, 17 physical and intellectual capacities, academic achievement, emotional condition, and 18 family support; 19 (3) a plan to acquire the occupational skills to be employable; 20 (4) the cost estimate of the reemployment plan, including provider fees ; 21 and [;] the cost [AMOUNT] of tuition, books, tools, and supplies , [;] transportation , 22 [;] temporary lodging , [;] or job modification devices; 23 (5) the estimated length of time that the plan will take; 24 (6) the date that the plan will commence; 25 (7) the estimated time of medical stability as predicted by a treating 26 physician or by a physician who has examined the employee at the request of the 27 employer or the board, or by referral of the treating physician; 28 (8) a detailed description and plan schedule; and 29 (9) a finding by the rehabilitation specialist that the inventory under (2) 30 of this subsection indicates that the employee can be reasonably expected to 31 satisfactorily complete the plan and perform in a new occupation within the time and
01 cost limitations of the plan. 02 * Sec. 4. AS 23.30.041(k) is amended to read: 03 (k) Benefits related to the reemployment plan may not extend past two years 04 from date of plan approval or acceptance, whichever date occurs first, at which time 05 the benefits expire. If an employee reaches medical stability before completion of the 06 plan, temporary total disability benefits shall cease and permanent impairment benefits 07 shall then be paid at the employee's temporary total disability rate. If the employee's 08 permanent impairment benefits are exhausted before the completion or termination of 09 the reemployment plan, the employer shall provide compensation [WAGES] equal to 10 70 [60] percent of the employee's spendable weekly wages , but not to exceed 105 11 percent of the average weekly wage [$525], until the completion or termination of 12 the plan , except that any compensation paid under this subsection is reduced by 13 wages earned by the employee while participating in the plan to the extent that 14 the wages earned, when combined with the compensation paid under this 15 subsection, exceed the employee's temporary total disability rate. If permanent 16 partial disability benefits have been paid in a lump sum before the employee 17 requested or was found eligible for reemployment benefits, payment of benefits 18 under this subsection is suspended until permanent partial disability benefits 19 would have ceased, had those benefits been paid at the employee's temporary total 20 disability rate, notwithstanding the provisions of AS 23.30.155(j) . A permanent 21 impairment benefit remaining unpaid upon the completion or termination of the plan 22 shall be paid to the employee in a single lump sum. An employee may not be 23 considered permanently totally disabled so long as the employee is involved in the 24 rehabilitation process under this chapter. The fees of the rehabilitation specialist 25 or rehabilitation professional shall be paid by the employer and may not be included 26 in determining the cost of the reemployment plan. 27 * Sec. 5. AS 23.30.041(l) is amended to read: 28 (l) The cost of the reemployment plan incurred under this section shall be the 29 responsibility of the employer, shall be paid on an expense incurred basis, and may not 30 exceed $13,300 [$10,000]. 31 * Sec. 6. AS 23.30.041(n) is amended to read:
01 (n) After the employee has elected to participate in reemployment benefits, if 02 the employer believes the employee has not cooperated , the employer may terminate 03 reemployment benefits on the date of noncooperation. Noncooperation means 04 unreasonable failure to 05 (1) keep appointments; 06 (2) maintain passing grades; 07 (3) attend designated programs; 08 (4) maintain contact with the rehabilitation specialist; 09 (5) cooperate with the rehabilitation specialist in developing a 10 reemployment plan and participating in activities relating to reemployability on a full- 11 time basis; 12 (6) comply with the employee's responsibilities outlined in the 13 reemployment plan; [OR] 14 (7) participate in any planned reemployment activity as determined by 15 the administrator ; or 16 (8) give written notice to the employer of the employee's choice of 17 rehabilitation specialists within 15 days after receiving notice of eligibility for 18 benefits from the administrator as required by (g) of this section . 19 * Sec. 7. AS 23.30.041 is amended by adding a new subsection to read: 20 (r) Notwithstanding AS 23.30.012, an employee may waive, at any time, any 21 benefits or rights under this section, including an eligibility evaluation and benefits 22 related to a reemployment plan. To waive any benefits or rights under this section, 23 an employee must file a statement under oath with the board to notify the parties of 24 the waiver and to specify the scope of benefits or rights that the employee seeks to 25 waive. The statement must be on a form prescribed or approved by the board. The 26 board shall serve the notice of waiver on all parties to the claim within 10 days after 27 filing. The waiver is effective upon service to the party. A waiver effective under this 28 subsection discharges the liability of the employer for the benefits or rights contained 29 in this section. The waiver may not be modified under AS 23.30.130. 30 * Sec. 8. AS 23.30.095(f) is amended to read: 31 (f) All fees and other charges for medical treatment or service shall be subject
01 to regulation by the board but may not exceed usual, customary, and reasonable fees 02 for the treatment or service in the community in which it is rendered, as determined 03 by the board. An employee may not be required to pay a fee or charge for medical 04 treatment or service. The board shall adopt updated usual, customary, and 05 reasonable medical fee schedules at least once each year. 06 * Sec. 9. AS 23.30.095 is amended by adding new subsections to read: 07 (l) An employer shall pay an employee's bills for medical treatment under this 08 chapter, excluding prescription charges or transportation for medical treatment, within 09 30 days after the date that the employer receives the health care provider's bill or a 10 completed report, whichever is later. The health care provider may prepare the report 11 for an employee's medical treatment on a form prescribed by the board. 12 (m) Unless the employer controverts a charge, an employer shall reimburse an 13 employee's prescription charges under this chapter within 30 days after the employer 14 received the health care provider's completed report and an itemization of the 15 prescription charges for the employee. Unless the employer controverts a charge, an 16 employer shall reimburse any transportation expenses for medical treatment under this 17 chapter within 30 days after the employer received the health care provider's 18 completed report and an itemization of the dates, destination, and transportation 19 expenses for each date of travel for medical treatment. If the employer does not plan 20 to make or does not make payment or reimbursement in full as required by this 21 subsection, the employer shall notify in writing the employee and the employee's 22 health care provider that payment will not be timely made and the reasons for the 23 nonpayment. The notification must be provided on or before the date that payment is 24 due under this subsection or (l) of this section. 25 * Sec. 10. AS 23.30.105(a) is amended to read: 26 (a) The right to compensation for disability under this chapter is barred unless 27 a claim for it is filed within two years after the employee has knowledge of the nature 28 of the employee's disability and its relation to the employment and after disablement. 29 However, the maximum time for filing the claim in any event other than arising out 30 of an occupational disease shall be four years from the date of injury, and the right to 31 compensation for death is barred unless a claim therefor is filed within one year after
01 the death, except that if payment of compensation has been made without an award on 02 account of the injury or death, a claim may be filed within two years after the date of 03 the last payment of benefits under AS 23.30.041, 23.30.180, 23.30.185, 23.30.190, 04 23.30.200, or 23.30.215. It is additionally provided that, in the case of latent defects 05 pertinent to and causing compensable disability, the injured employee has full right to 06 claim as shall be determined by the board, time limitations notwithstanding. 07 * Sec. 11. AS 23.30.107(a) is amended to read: 08 (a) Upon written request, an employee shall provide written authority to the 09 employer, carrier, rehabilitation specialist, or reemployment benefits administrator to 10 obtain medical and rehabilitation information relative to the employee's injury. The 11 request must include notice of the employee's right to file a petition for a 12 protective order with the board and must be served by certified mail to the 13 employee's address on the notice of injury or by hand delivery to the employee. 14 * Sec. 12. AS 23.30 is amended by adding a new section to read: 15 Sec. 23.30.108. Prehearings on discovery matters; objections to requests 16 for release of information; sanctions for noncompliance. (a) If an employee 17 objects to a request for written authority under AS 23.30.107, the employee must file 18 a petition with the board seeking a protective order within 14 days after service of the 19 request. If the employee fails to file a petition and fails to deliver the written authority 20 as required by AS 23.30.107 within 14 days after service of the request, the 21 employee's rights to benefits under this chapter are suspended until the written 22 authority is delivered. 23 (b) If a petition seeking a protective order is filed, the board shall set a 24 prehearing within 21 days after the filing date of the petition. At a prehearing 25 conducted by the board's designee, the board's designee has the authority to resolve 26 disputes concerning the written authority. If the board or the board's designee orders 27 delivery of the written authority and if the employee refuses to deliver it within 10 28 days after being ordered to do so, the employee's rights to benefits under this chapter 29 are suspended until the written authority is delivered. During any period of suspension 30 under this subsection, the employee's benefits under this chapter are forfeited unless 31 the board, or the court determining an action brought for the recovery of damages
01 under this chapter, determines that good cause existed for the refusal to provide the 02 written authority. 03 (c) At a prehearing on discovery matters conducted by the board's designee, 04 the board's designee shall direct parties to sign releases or produce documents, or both, 05 if the parties present releases or documents that are likely to lead to admissible 06 evidence relative to an employee's injury. If a party refuses to comply with an order 07 by the board's designee or the board concerning discovery matters, the board may 08 impose appropriate sanctions in addition to any forfeiture of benefits, including 09 dismissing the party's claim, petition, or defense. If a discovery dispute comes before 10 the board for review of a determination by the board's designee, the board may not 11 consider any evidence or argument that was not presented to the board's designee, but 12 shall determine the issue solely on the basis of the written record. The decision by the 13 board on a discovery dispute shall be made within 30 days. The board shall uphold 14 the designee's decision except when the board's designee's determination is an abuse 15 of discretion. 16 * Sec. 13. AS 23.30.110 is amended by adding a new subsection to read: 17 (h) The filing of a hearing request under (c) of this section suspends the 18 running of the two-year time period specified in (c) of this section. However, if the 19 employee subsequently requests a continuance of the hearing and the request is 20 approved by the board, the granting of the continuance renders the request for hearing 21 inoperative, and the two-year time period specified in (c) of this section continues to 22 run again from the date of the board's notice to the employee of the board's granting 23 of the continuance and of its effect. If the employee fails to again request a hearing 24 before the conclusion of the two-year time period in (c) of this section, the claim is 25 denied. 26 * Sec. 14. AS 23.30.155 is amended by adding a new subsection to read: 27 (p) An employer shall pay interest on compensation that is not paid when due. 28 Interest required under this subsection accrues at the rate specified in AS 09.30.070(a) 29 that is in effect on the date the compensation is due. 30 * Sec. 15. AS 23.30.175(a) is amended to read: 31 (a) The weekly rate of compensation for disability or death may not exceed
01 the maximum compensation rate, may not be less than 22 percent of the 02 maximum compensation rate, [$700] and initially may not be less than $110. 03 However, if the board determines that the employee's spendable weekly wages are less 04 than $110 a week as computed under AS 23.30.220, or less than 22 percent of the 05 maximum compensation rate [$154] a week in the case of an employee who has 06 furnished documentary proof of the employee's wages, it shall issue an order adjusting 07 the weekly rate of compensation to a rate equal to the employee's spendable weekly 08 wages. If the employer can verify that the employee's spendable weekly wages are 09 less than 22 percent of the maximum compensation rate [$154], the employer may 10 adjust the weekly rate of compensation to a rate equal to the employee's spendable 11 weekly wages without an order of the board. If the employee's spendable weekly 12 wages are greater than 22 percent of the maximum compensation rate [$154], but 13 80 percent of the employee's spendable weekly wages is less than 22 percent of the 14 maximum compensation rate [$154], the employee's weekly rate of compensation 15 shall be 22 percent of the maximum compensation rate [$154]. Prior payments 16 made in excess of the adjusted rate shall be deducted from the unpaid compensation 17 in the manner the board determines. In any case, the employer shall pay timely 18 compensation. In this subsection, "maximum compensation rate" means 120 19 percent of the average weekly wage, calculated under (d) of this section, 20 applicable on the date of injury of the employee. 21 * Sec. 16. AS 23.30.175 is amended by adding a new subsection to read: 22 (d) By December 1 of each year, the commissioner shall determine the average 23 weekly wage in this state by dividing the average annual wage in this state for the 24 preceding calendar year by 52. The resulting figure is the average weekly wage in this 25 state applicable for the period beginning January 1 and ending December 31 of the 26 following calendar year. The average annual wage calculation required under this 27 subsection shall include the wages of all employees in the state, both public and 28 private, who are covered by this chapter. 29 * Sec. 17. AS 23.30.190(a) is amended to read: 30 (a) In case of impairment partial in character but permanent in quality, and not 31 resulting in permanent total disability, the compensation is $177,000 [$135,000]
01 multiplied by the employee's percentage of permanent impairment of the whole person. 02 The percentage of permanent impairment of the whole person is the percentage of 03 impairment to the particular body part, system, or function converted to the percentage 04 of impairment to the whole person as provided under (b) of this section. The 05 compensation is payable in a single lump sum, except as otherwise provided in 06 AS 23.30.041, but the compensation may not be discounted for any present value 07 considerations. 08 * Sec. 18. AS 23.30.215(a) is amended to read: 09 (a) If the injury causes death, the compensation is known as a death benefit 10 and is payable in the following amounts to or for the benefit of the following persons: 11 (1) reasonable and necessary funeral expenses not exceeding $3,300 12 [$2,500]; 13 (2) if there is a widow or widower or a child or children of the 14 deceased, the following percentages of the spendable weekly wages of the deceased: 15 (A) 80 percent for the widow or widower with no children; 16 (B) 50 [40] percent for the widow or widower with one child 17 and 50 [40] percent for the child; 18 (C) 30 [25] percent for the widow or widower with two or more 19 children and 70 [55] percent divided equally among the children; 20 (D) 100 [80] percent for an only child when there is no widow 21 or widower; 22 (E) 100 [80] percent, divided equally, if there are two or more 23 children and no widow or widower; 24 (3) if the widow or widower remarries, the widow or widower is 25 entitled to be paid in one sum an amount equal to the compensation to which the 26 widow or widower would otherwise be entitled in the two years commencing on the 27 date of remarriage as full and final settlement of all sums due the widow or widower; 28 (4) if there is no widow or widower or child or children, then for the 29 support of father, mother, grandchildren, brothers and sisters, if dependent upon the 30 deceased at the time of injury, 42 percent of the spendable weekly wage of the 31 deceased to such beneficiaries, share and share alike, not to exceed $20,000 in the
01 aggregate. 02 * Sec. 19. AS 23.30.220(a) is amended to read: 03 (a) Computation of compensation under this chapter shall be on the basis of 04 an employee's spendable weekly wage at the time of injury. An employee's spendable 05 weekly wage is the employee's gross weekly earnings minus payroll tax deductions. 06 An employee's gross weekly earnings shall be calculated as follows: 07 (1) if at the time of injury the employee's earnings are calculated by 08 the week, the weekly amount is the employee's gross weekly earnings; 09 (2) if at the time of injury the employee's earnings are calculated by 10 the month, the employee's gross weekly earnings are the monthly earnings multiplied 11 by 12 and divided by 52; 12 (3) if at the time of injury the employee's earnings are calculated by 13 the year, the employee's gross weekly earnings are the yearly earnings divided by 52; 14 (4) if at the time of injury the 15 (A) employee's earnings are calculated by the day, hour, or by 16 the output of the employee, the employee's gross weekly earnings are the 17 employee's earnings most favorable to the employee computed by dividing by 18 13 the employee's earnings, [NOT] including overtime or premium pay, earned 19 during any period of 13 consecutive calendar weeks within the 52 weeks 20 immediately preceding the injury; 21 (B) employee has been employed for less than 13 calendar 22 weeks immediately preceding the injury, then, notwithstanding (1) - (3) of this 23 subsection and (A) of this paragraph, the employee's gross weekly earnings are 24 computed by determining the amount that the employee would have earned, 25 [NOT] including overtime or premium pay, had the employee been employed 26 by the employer for 13 calendar weeks immediately preceding the injury and 27 dividing this sum by 13; 28 (5) if at the time of injury the employee's earnings have not been fixed 29 or cannot be ascertained, the employee's earnings for the purpose of calculating 30 compensation are the usual wage for similar services when the services are rendered 31 by paid employees;
01 (6) if at the time of injury the employment is exclusively seasonal or 02 temporary, then, notwithstanding (1) - (5) of this subsection, the gross weekly earnings 03 are 1/50 [1/50th] of the total wages that the employee has earned from all occupations 04 during the 12 calendar months [YEAR] immediately preceding the injury; 05 (7) when the employee is working under concurrent contracts with two 06 or more employers, the employee's earnings from all employers is considered as if 07 earned from the employer liable for compensation; 08 (8) if an employee when injured is a minor, an apprentice, or a trainee 09 in a formal training program, as determined by the board, whose wages under normal 10 conditions would increase during the period of disability, the projected increase may 11 be considered by the board in computing the gross weekly earnings of the employee; 12 (9) if the employee is injured while performing duties as a volunteer 13 ambulance attendant, volunteer police officer, or volunteer fire fighter, then, 14 notwithstanding (1) - (6) of this subsection, the gross weekly earnings for calculating 15 compensation shall be the minimum gross weekly earnings paid a full-time ambulance 16 attendant, police officer, or fire fighter employed in the political subdivision where the 17 injury occurred, or, if the political subdivision has no full-time ambulance attendants, 18 police officers, or fire fighters, at a reasonable figure previously set by the political 19 subdivision to make this determination, but in no case may the gross weekly earnings 20 for calculating compensation be less than the minimum wage computed on the basis 21 of 40 hours work per week; 22 (10) if an employee is entitled to compensation under AS 23.30.180 23 and the board determines that calculation of the employee's gross weekly earnings 24 under (1) - (7) of this subsection does not fairly reflect the employee's earnings during 25 the period of disability, the board shall determine gross weekly earnings by considering 26 the nature of the employee's work, work history, and resulting disability, but 27 compensation calculated under this paragraph may not exceed the employee's gross 28 weekly earnings at the time of injury. 29 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section 30 to read: 31 APPLICABILITY. The changes made by secs. 3 - 5 and 14 - 19 of this Act apply
01 only to an injury sustained on or after the effective date of secs. 3 - 5 and 14 - 19 of this Act. 02 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 TRANSITION: REGULATIONS. The agency affected by the changes made by this 05 Act may proceed to adopt regulations under AS 23.30.005 to implement the changes. The 06 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 07 effective date of secs. 2 - 19 of this Act. 08 * Sec. 22. Section 21 of this Act takes effect immediately under AS 01.10.070(c). 09 * Sec. 23. Except as provided in sec. 22 of this Act, this Act takes effect July 1, 2000.