HB 1002: "An Act providing for a special deposit for workers' compensation insurers; relating to assigned risk pools and workers' compensation insurers; relating to the board of governors of the Alaska Insurance Guaranty Association; stating the intent of the legislature, and setting out limitations, concerning the interpretation, construction, and implementation of workers' compensation laws; relating to restructuring the Alaska workers' compensation system; eliminating the Alaska Workers' Compensation Board; establishing a division of workers' compensation within the Department of Labor and Workforce Development and assigning certain Alaska Workers' Compensation Board functions to the division and the Department of Labor and Workforce Development; establishing a Workers' Compensation Appeals Commission; assigning certain functions of the Alaska Workers' Compensation Board to the Workers' Compensation Appeals Commission and the office of administrative hearings; relating to agreements that discharge workers' compensation liability; providing for administrative law judges in workers' compensation proceedings; relating to workers' compensation awards; relating to an employer's failure to insure and keep insured or provide security; providing for appeals from compensation orders; relating to workers' compensation proceedings; providing for supreme court jurisdiction of appeals from the Workers' Compensation Appeals Commission; providing for a maximum amount for the cost-of-living adjustment for workers' compensation benefits; providing for administrative penalties for employers uninsured or without adequate security for workers' compensation; relating to fraudulent acts or false or misleading statements in worker's compensation; and providing for an effective date."
00 HOUSE BILL NO. 1002 01 "An Act providing for a special deposit for workers' compensation insurers; relating to 02 assigned risk pools and workers' compensation insurers; relating to the board of 03 governors of the Alaska Insurance Guaranty Association; stating the intent of the 04 legislature, and setting out limitations, concerning the interpretation, construction, and 05 implementation of workers' compensation laws; relating to restructuring the Alaska 06 workers' compensation system; eliminating the Alaska Workers' Compensation Board; 07 establishing a division of workers' compensation within the Department of Labor and 08 Workforce Development and assigning certain Alaska Workers' Compensation Board 09 functions to the division and the Department of Labor and Workforce Development; 10 establishing a Workers' Compensation Appeals Commission; assigning certain functions 11 of the Alaska Workers' Compensation Board to the Workers' Compensation Appeals 12 Commission and the office of administrative hearings; relating to agreements that
01 discharge workers' compensation liability; providing for administrative law judges in 02 workers' compensation proceedings; relating to workers' compensation awards; relating 03 to an employer's failure to insure and keep insured or provide security; providing for 04 appeals from compensation orders; relating to workers' compensation proceedings; 05 providing for supreme court jurisdiction of appeals from the Workers' Compensation 06 Appeals Commission; providing for a maximum amount for the cost-of-living 07 adjustment for workers' compensation benefits; providing for administrative penalties 08 for employers uninsured or without adequate security for workers' compensation; 09 relating to fraudulent acts or false or misleading statements in worker's compensation; 10 and providing for an effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 LEGISLATIVE INTENT. It is the intent of the legislature by secs. 3 - 7 of this Act 15 (1) to reform the workers' compensation system in Alaska to ensure the 16 continued payment of benefits in the event of an insurer insolvency; 17 (2) to give parties affected by the insolvency of a workers' compensation 18 insurer a voice on the board of governors of the Alaska Insurance Guaranty Association; and 19 (3) to reduce the overall costs of workers' compensation premiums to 20 employers. 21 * Sec. 2. AS 08.18.101 is amended to read: 22 Sec. 08.18.101. Insurance required. Each applicant, at the time of applying 23 for registration or upon renewal of registration, shall file with the commissioner 24 satisfactory evidence that the applicant has in effect 25 (1) to the extent required under AS 23.30, workers' compensation 26 insurance that is purchased from a private insurer who is admitted to do business in the 27 state and that shows coverage in this state, appropriate employee classifications, and
01 rates applicable in this state, or a valid workers' compensation self-insurance 02 certificate issued by the director of the division of workers' compensation 03 [ALASKA WORKERS' COMPENSATION BOARD]; and 04 (2) public liability and property damage insurance covering the 05 applicant's contracting operations in this state in the sum of not less than $20,000 for 06 damage to property, $50,000 for injury, including death, to any one person, and 07 $100,000 for injury, including death, to more than one person. 08 * Sec. 3. AS 21.09.090 is amended by adding a new subsection to read: 09 (e) In addition to any other deposit required under this section, an insurer who 10 transacts workers' compensation insurance in this state shall maintain in the state a 11 special deposit of cash or securities eligible for deposit under AS 21.24.030 in an 12 amount not less than the basic capital or surplus required of an insurer under 13 AS 21.09.070 for the protection of persons in this state covered under workers' 14 compensation insurance. The insurer shall maintain the deposit under this subsection 15 in this state as long as there is any outstanding liability of the insurer for workers' 16 compensation in this state. If the insurer is unable to pay workers' compensation 17 claims due under AS 23.30 because the insurer is an insolvent insurer, upon the 18 director's request, the deposit is immediately available to the Alaska Insurance 19 Guaranty Association (AS 21.80) for continuation of claims benefits to eligible 20 workers. In this subsection, "insolvent insurer" has the meaning given in 21 AS 21.80.180. 22 * Sec. 4. AS 21.09 is amended by adding a new section to read: 23 Sec. 21.09.095. Deposit requirement for workers' compensation insurers. 24 (a) An insurer of workers' compensation shall maintain with an in-state bank 25 approved by the director a separate deposit equal to the insurer's assumed Alaska 26 workers' compensation assigned risk pool loss reserves, as determined by the 27 designated plan administrator, for all years and ceded under the joint and several quota 28 share reinsurance agreements through which workers' compensation insurers reinsure 29 risks in the Alaska workers' compensation assigned risk pool. The deposit shall be 30 maintained as secured collateral for the benefit of other insurers in their capacity as 31 joint and several reinsurers of the Alaska workers' compensation assigned risk pool.
01 (b) Upon becoming an insolvent insurer or upon otherwise failing to timely 02 satisfy its Alaska workers' compensation assigned risk pool obligations, the insurer's 03 deposit under this section shall be retained as secured collateral under the control of 04 the director. The director shall make funds from the deposit available to the 05 designated plan administrator as needed to fund the insurer's obligations to the Alaska 06 workers' compensation assigned risk pool. 07 (c) The deposit required under this section must consist of cash and 08 investment assets approved by the director under the regulatory authority in 09 AS 21.21.420. 10 (d) In this section, 11 (1) "Alaska workers' compensation assigned risk pool" means the 12 assigned risk pool established for workers' compensation under AS 21.39.155; 13 (2) "designated plan administrator" means the person appointed by the 14 director to operate the workers' compensation assigned risk pool; 15 (3) "insolvent insurer" has the meaning given in AS 21.80.180. 16 * Sec. 5. AS 21.24.130(d) is amended to read: 17 (d) Except as provided in AS 21.09.090(e), if [IF] the insurer is subject to 18 delinquency proceedings as defined in AS 21.78, upon the order of a court of 19 competent jurisdiction, the director shall yield the assets and securities held on deposit 20 to the receiver, conservator, rehabilitator, or liquidator of the insurer, or to any other 21 properly designated official or officials who succeed to the management and control of 22 the insurer's assets. 23 * Sec. 6. AS 21.39.155 is amended by adding a new subsection to read: 24 (d) Rates for the workers' compensation assigned risk pool shall be established 25 and maintained at a level that will ensure, to the greatest extent practicable, that the 26 workers' compensation assigned risk pool will operate on a self-funding financial 27 basis. For purposes of this subsection, "operate on a self-funding financial basis" 28 means that the workers' compensation assigned risk pool shall charge rates based upon 29 a combination of voluntary loss costs, administrative expenses, servicing carrier 30 allowances, catastrophe and other reinsurance expenses, contingencies, and all other 31 factors in AS 21.39.030 that are approved by the director, so as to be self-funding
01 during any consecutive three-year period, on a moving average basis. 02 * Sec. 7. AS 21.80.050 is repealed and reenacted to read: 03 Sec. 21.80.050. Board of governors. (a) The board of governors of the 04 association consists of nine members appointed by the director. Terms are established 05 in the plan of operation of the association. Membership of the board of governors 06 consists of 07 (1) four members who represent member insurers; 08 (2) two members who represent employers; 09 (3) two members who represent labor; 10 (4) one member who represents licensees. 11 (b) Members appointed shall serve staggered three-year terms and may be 12 removed for cause by the director. 13 (c) Within 90 days after a vacancy occurs on the board, the director shall fill 14 the vacancy for the remaining period of the term of the vacating member. 15 (d) In appointing a member insurer to the board, the director shall consider, 16 among other things, whether all member insurers are fairly represented. 17 (e) Members of the board may be reimbursed from the assets of the 18 association for expenses incurred by them as members of the board of governors. 19 * Sec. 8. AS 23.05.067(a) is amended to read: 20 (a) Each insurer providing workers' compensation insurance and each 21 employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall 22 pay an annual service fee to the department for the administrative expenses of the state 23 for workers' safety programs under AS 18.60 and the workers' compensation program 24 under AS 23.30 as follows: 25 (1) for each employer, 26 (A) except as provided in (b) of this section, the service fee 27 shall be paid each year to the department at the time that the annual report is 28 required to be filed under AS 23.30.155(m) or (n); and 29 (B) the service fee is 2.9 percent of all payments reported to the 30 director of the division of workers' compensation [ALASKA WORKERS' 31 COMPENSATION BOARD] under AS 23.30.155(m) or (n), except second
01 injury fund payments; and 02 (2) for each insurer, the director of the division of insurance shall, 03 under (e) of this section, deposit from funds received from the insurer under 04 AS 21.09.210 a service fee of 1.82 percent of the direct premium income for workers' 05 compensation insurance received by the insurer during the year ending on the 06 preceding December 31, subject to all the deductions specified in AS 21.09.210(b). 07 * Sec. 9. AS 23.05.067(e) is amended to read: 08 (e) Annual service fees and civil penalties collected under this section and 09 fees collected by the Workers' Compensation Appeals Commission shall be 10 deposited in the workers' safety and compensation administration account in the state 11 treasury. Under AS 37.05.146(c), the Workers' Compensation Appeals 12 Commission fees, service fees, and civil penalties shall be accounted for separately, 13 and appropriations from the account are not made from the unrestricted general fund. 14 The legislature may appropriate money from the account for expenditures by the 15 department for necessary costs incurred by the department in the administration of the 16 workers' safety programs contained in AS 18.60 and of the Alaska Workers' 17 Compensation Act contained in AS 23.30. The legislature may appropriate money 18 from the account for expenditures by the department for necessary costs 19 incurred by the Workers' Compensation Appeals Commission, and by the 20 department or the office of administrative hearings in the Department of 21 Administration (AS 44.64.010) for the administration of adjudication of claims 22 and petitions arising under AS 23.30. Nothing in this subsection creates a dedicated 23 fund or dedicates the money in the account for a specific purpose. Money deposited in 24 the account does not lapse at the end of a fiscal year unless otherwise provided by an 25 appropriation. 26 * Sec. 10. AS 23.30 is amended by adding a new section to read: 27 Sec. 23.30.001. Intent of the legislature and construction of chapter. It is 28 the intent of the legislature that 29 (1) this chapter be interpreted so as to ensure the quick, efficient, fair, 30 and predictable delivery of indemnity and medical benefits to injured workers at a 31 reasonable cost to the employers who are subject to the provisions of this chapter;
01 (2) workers' compensation cases shall be decided on their merits 02 except where otherwise provided by law; 03 (3) this chapter may not be construed by the courts in favor of a party; 04 (4) hearings in workers' compensation cases shall be impartial and fair 05 to all parties and that all parties shall be afforded due process and an opportunity to be 06 heard and for their arguments and evidence to be fairly considered; 07 (5) evidence shall be carefully and rationally examined and, except in 08 the application of the presumption in AS 23.30.120(a), doubt as to the substance of 09 evidence may not be interpreted in favor of one party or the other. 10 * Sec. 11. AS 23.30.005 is repealed and reenacted to read: 11 Sec. 23.30.005. Alaska workers' compensation division; duties of 12 department; regulations; notice of revocation of self-insurance. (a) There is 13 established in the Department of Labor and Workforce Development a division of 14 workers' compensation. The commissioner shall appoint the director of the division. 15 The director shall have at least three years' experience in the field of workers' 16 compensation. 17 (b) The director is responsible to the commissioner for the execution of the 18 duties and responsibilities imposed by this chapter and the regulations adopted under 19 this chapter. The director shall 20 (1) direct and supervise the administrative, technical, investigative, and 21 enforcement activities of the division of workers' compensation; 22 (2) develop, in cooperation with others, programs for the improvement 23 of the workers' compensation system; 24 (3) prepare regulations, consistent with the responsibilities of the 25 division under this chapter, that are required to implement and administer this chapter 26 for adoption by the department; 27 (4) notify employees, employers, physicians, and rehabilitation 28 specialists of their rights and obligations under this chapter; 29 (5) perform other lawful acts necessary to carry out the purposes of 30 this chapter. 31 (c) The department shall adopt rules for the periodic selection, retention, and
01 removal of rehabilitation specialists and physicians under AS 23.30.041 and 02 23.30.095. 03 (d) The department may adopt regulations concerning the medical care 04 provided for in this chapter and, except as committed to the authority of the Workers' 05 Compensation Appeals Commission, may adopt regulations to carry out the provisions 06 of this chapter. 07 (e) The director shall notify the contracting agency of the state or of a political 08 subdivision of the state when it revokes the self-insurance certificate of an employer 09 holding a contract with the state or a political subdivision of the state. 10 * Sec. 12. AS 23.30 is amended by adding new sections to read: 11 Sec. 23.30.007. Workers' Compensation Appeals Commission. (a) There 12 is established in the Department of Labor and Workforce Development the Workers' 13 Compensation Appeals Commission. The commission has jurisdiction to hear appeals 14 from final decisions and orders of administrative law judges and the director under this 15 chapter. Jurisdiction of the commission is limited to administrative appeals arising 16 under this chapter. 17 (b) The commission consists of five members appointed by the governor and 18 confirmed by a majority of the members of the legislature in joint session. The 19 members shall be appointed as follows: 20 (1) a member appointed as chair who meets the requirements of (c)(2) 21 of this section; 22 (2) two members who, because of their employment or affiliations, 23 may be classified as a representative of employees covered by this chapter; 24 (3) two members who, because of their employment or affiliations, 25 may be classified as a representative of employers covered by this chapter. 26 (c) To be eligible for appointment under this section 27 (1) the member must 28 (A) be a citizen of the United States; 29 (B) be a resident of the state for the five years preceding the 30 appointment; and 31 (C) have not been convicted of either a
01 (i) felony; or 02 (ii) misdemeanor related to workers' compensation; 03 (2) the chair must 04 (A) meet the criteria specified in (1) of this subsection; 05 (B) be licensed to practice law in this state and be a member in 06 good standing with the Alaska Bar Association; and 07 (C) have engaged in the active practice of law for at least five 08 years with experience in workers' compensation in this state. 09 (d) A member may act and receive compensation under this section from the 10 date of appointment until confirmation or rejection by the legislature. 11 (e) The term of service on the commission is five years. A member may be 12 reappointed so long as the reappointment complies with the provisions of this section. 13 (f) The chair of the commission is in the exempt service under AS 39.25.110 14 and shall receive a monthly salary that is not less than Step A nor more than Step F of 15 Range 27 of the salary schedule in AS 39.27.011(a) for Anchorage, Alaska. 16 (g) A vacancy arising in the commission shall be filled by appointment by the 17 governor and confirmed by a majority of the members of the legislature in joint 18 session. Except as provided in AS 39.05.080(4), an appointee selected to fill a 19 vacancy shall hold office for the unexpired term of the member whose vacancy is 20 filled. A vacancy in the commission does not impair the authority of a quorum of 21 members to exercise all the powers and perform all the duties of the commission. 22 (h) An appeal to the commission shall be heard and decided by a three- 23 member panel of the commission. An appeal panel shall consist of the chair of the 24 commission and two members of the commission assigned by the chair, one member 25 classified as representing employees, and one member classified as representing 26 employers. At other meetings to conduct commission business, the number of 27 commission members classified as representing employees must equal the number of 28 commission members classified as representing employers. The chair of the 29 commission and two representative members of the commission, one classified as 30 representing employees and one classified as representing employers, constitutes a 31 quorum.
01 (i) A member of the commission may be removed from office by the governor 02 for good cause. To be removed for cause, a member of the commission shall be given 03 a copy of the charges and afforded an opportunity to be heard in person or by counsel 04 in the member's own defense upon not less than 10 days' notice. If the member is 05 removed for cause, the governor shall file with the lieutenant governor a complete 06 statement of all charges made against the member, the governor's findings on the 07 charges, and the record of any proceedings. In this subsection, "good cause" includes 08 (1) misconduct in office or violation of AS 39.52; 09 (2) conviction of a felony; 10 (3) conviction of a misdemeanor related to workers' compensation; 11 (4) inability to serve, neglect of duty, incompetence, unjustified failure 12 to handle the caseload assigned, or similar nonfeasance of office; and 13 (5) failure to continue to meet the requirements of this section relating 14 to qualification for office. 15 (j) Representative members are entitled to compensation in the amount of 16 $200 a day for each day spent in actual hearing of appeals or on authorized official 17 business incidental to their duties, and to transportation and per diem as provided by 18 law. Compensation shall be paid pro rata for each portion of a day spent in actual 19 hearing of appeals or on authorized official business. 20 (k) A member of the commission may not hear an appeal under this chapter if 21 (1) a party is an employee or was, in the past seven years, an employee 22 of the commission member or of a business that employs the commission member; 23 this paragraph does not apply to the chair of the commission when the State of Alaska 24 is or was the employer of a party; 25 (2) a party is a member or was, in the past seven years, a member of 26 the same union or employee association as the commission member; 27 (3) a party has a contractual relationship with the commission member, 28 a business that employs the commission member, or a union or employee association 29 of which the commission member is a member; 30 (4) the commission member is unable to be fair, impartial, and 31 unbiased toward the appeal participants; or
01 (5) participation in the appeal is a violation of AS 39.52. 02 (l) If the chair of the commission is unable to hear an appeal for reasons of 03 absence or illness in excess of 10 days, or for reasons set out in (k) of this section, the 04 commissioner of the department shall appoint a person who meets the qualifications of 05 this section to serve as chair to hear the appeal as chair pro tem. The person shall 06 receive the compensation provided in (j) of this section. Appointment of a chair pro 07 tem does not require legislative confirmation. 08 (m) Each member of the commission, before entering upon the duties of 09 office, shall take and subscribe to the oath prescribed for principal officers of the state. 10 (n) The offices of the commission shall be physically separate from the offices 11 of the division. 12 Sec. 23.30.008. Powers and duties of the commission. (a) The commission 13 shall be the exclusive and final authority for the hearing and determination of all 14 questions of law and fact arising under this chapter in those matters that have been 15 appealed to the commission, except for an appeal to the Alaska Supreme Court. The 16 commission may not have jurisdiction in any case that does not arise under this 17 chapter or in any criminal case. On any matter taken to the commission, the decision 18 of the commission is final and conclusive, unless appealed to the Alaska Supreme 19 Court, and shall stand in lieu of the order of the director or the administrative law 20 judge from which the appeal was taken. Unless reversed by the Alaska Supreme 21 Court, decisions of the commission shall have the force of legal precedent. 22 (b) The commission, in its administrative capacity, shall maintain, index, and 23 make available for public inspection the final administrative decisions and orders of 24 the commission and of the director and administrative law judges. To promote 25 consistency among legal determinations, the chair of the commission may review and 26 circulate among the other members of the relevant commission appeal panel the drafts 27 of the panel's formal decisions and decisions upon reconsideration. The drafts are 28 confidential documents and are not subject to disclosure. 29 (c) The chair of the commission shall draft and propose, and the commission 30 in its administrative capacity may adopt, regulations implementing the commission's 31 authority and duties under this chapter, including rules of procedure and evidence for
01 proceedings before the commission and, after consulting with the chief administrative 02 law judge, in workers' compensation proceedings under AS 23.30.080, 23.30.090, and 03 23.30.110, and for the adjudication of all claims and petitions and appeals under this 04 chapter. The provisions of AS 44.62 (Administrative Procedure Act) apply to the 05 adoption of regulations by the commission. 06 (d) In an appeal, the commission shall award a successful party reasonable 07 costs and, if the party is represented by an attorney, attorney fees that the commission 08 determines to be fully compensatory and reasonable. However, the commission may 09 not make an award of attorney fees against an injured worker unless the commission 10 finds that the worker's position on appeal was frivolous or unreasonable or the appeal 11 was taken in bad faith. 12 (e) The commission, in its administrative capacity, may adopt and alter an 13 official seal and do all things necessary, convenient, or desirable to carry out the 14 powers expressly granted or necessarily implied in this chapter. 15 Sec. 23.30.009. Powers and duties of the chair of the commission. (a) The 16 chair of the commission shall exercise general supervision over the office of the 17 commission and over appeals, and shall direct the administrative functions of the 18 commission. The chair of the commission shall serve as the executive officer of the 19 commission and shall have authority in all administrative matters relating to the 20 members. The chair may 21 (1) employ and supervise commission staff and appoint a commission 22 clerk; 23 (2) establish and implement a time management system for the 24 commission members and staff and manage the calendar of appeals; 25 (3) assign the work of the commission members and staff so that 26 appeals are resolved as expeditiously and competently as possible; 27 (4) receive petitions and claims and other materials for hearings 28 conducted by the office of administrative hearings (AS 44.64.010); 29 (5) advise and cooperate with the chief administrative law judge of the 30 office of administrative hearings (AS 44.64.010) to develop appropriate procedures for 31 maintenance and transfer of hearing files and the preservation and transfer of records
01 on appeal; and 02 (6) prepare an annual budget of the commission. 03 (b) The chair of the commission shall preside over hearings and arguments on 04 appeals. The chair of the commission shall ensure that all functions of the commission 05 are performed with due regard for the rights of all parties and consistent with the 06 orderly and prompt resolution of appeals. The chair of the commission shall rule on 07 questions of procedure and advise the representative members of the commission on 08 matters of law. 09 (c) The chair of the commission shall, not later than March 15 of each year, 10 make available to the public and file with the lieutenant governor, a report regarding 11 the commission, including data regarding time periods between initial receipt and final 12 decisions on appeals. 13 (d) The chair of the commission shall devote full time to the duties of the chair 14 of the commission and may not engage in any other employment or business. The 15 chair of the commission may not hold any other office or position under the United 16 States, this state, any municipality or political subdivision of this state, or any tribal 17 government or corporation. The chair of the commission may not hold office or 18 position in a partisan political organization or party. 19 * Sec. 13. AS 23.30.011(c) is amended to read: 20 (c) If an employee is entitled to the benefits of this chapter by reason of an 21 injury sustained in this state in employment by an employer who is domiciled in 22 another state and who has not secured the payment of compensation as required by 23 this chapter, the employer or the employer's carrier may file with the division 24 [BOARD] a certificate, issued by the commission or agency of the other state having 25 jurisdiction over workers' compensation claims, certifying that the employer has 26 secured the payment of compensation under the workers' compensation law of the 27 other state and that, with respect to that injury, the employee is entitled to the benefits 28 provided under that law. In that event, 29 (1) the filing of the certificate shall constitute an appointment by the 30 employer or the employer's carrier of the director [BOARD] as the employer's agent 31 for acceptance of the service of process in a proceeding brought by the employee or
01 the employee's dependents to enforce the employee's or their rights under this chapter 02 on account of the injury; 03 (2) the director [BOARD] shall send to the employer or carrier, by 04 registered or certified mail to the address shown on the certificate, a true copy of any 05 notice of claim or other process served on the director by the employee or the 06 employee's dependents in any proceeding brought to enforce the employee's or their 07 rights under this chapter; 08 (3) if the employer is a qualified self-insurer under the workers' 09 compensation law of the other state, the employer, upon submission of evidence 10 satisfactory to the director [BOARD] of the employer's ability to meet the employer's 11 liability to the employee under this chapter, shall be considered to be a qualified self- 12 insurer under this chapter; 13 (4) if the employer's liability under the workers' compensation law of 14 another state is insured, the employer's carrier, as to the employee or the employee's 15 dependents only, shall be considered to be an insurer authorized to write insurance 16 under and be subject to this chapter; however, unless its contract with the employer 17 requires it to pay an amount equivalent to the compensation benefits provided by this 18 chapter, its liability for income benefits or medical and related benefits may not 19 exceed the amounts of the benefits for which the insurer would have been liable under 20 the workers' compensation law of the other state; 21 (5) if the amount for which the employer's insurance is liable under (3) 22 and (4) of this subsection is less than the total of the compensation benefits to which 23 the employee is entitled under this chapter, the director [BOARD] may, if the 24 director [IT] considers it necessary, require the employer to file security satisfactory 25 to the director [BOARD] to secure the payment of benefits due the employee or the 26 employee's dependents under this chapter; and 27 (6) upon compliance with the preceding requirements of this 28 subsection, the employer, as to the employee only, shall be considered to have secured 29 the payment of compensation under this chapter. 30 * Sec. 14. AS 23.30.012 is amended to read: 31 Sec. 23.30.012. Agreements in regard to claims. (a) At any time after
01 death, or after 30 days subsequent to the date of the injury, the employer and the 02 employee or the beneficiary or beneficiaries, as the case may be, have the right to 03 reach an agreement in regard to a claim for injury or death under this chapter [IN 04 ACCORDANCE WITH THE APPLICABLE SCHEDULE IN THIS CHAPTER], but 05 a memorandum of the agreement in a form prescribed by the director [BOARD] shall 06 be filed with the division [BOARD]. Otherwise, the agreement is void for any 07 purpose. Except as provided in (b) of this section, an agreement filed with the 08 division discharges the liability of the employer for the compensation, 09 notwithstanding the provisions of AS 23.30.130, 23.30.160, and 23.30.245, and is 10 enforceable as a compensation order. 11 (b) If the claimant or beneficiary is not represented by an attorney 12 licensed to practice in this state, or the beneficiary is a minor, the division shall 13 request review of the agreement by an administrative law judge. If approved by 14 an administrative law judge [THE BOARD], the agreement is enforceable the same 15 as an order or award of an administrative law judge [THE BOARD] and discharges 16 the liability of the employer for the compensation notwithstanding the provisions of 17 AS 23.30.130, 23.30.160, and 23.30.245. The agreement shall be approved by an 18 administrative law judge [THE BOARD] only when the terms conform to the 19 provisions of this chapter and, if it involves or is likely to involve permanent 20 disability, an administrative law judge [THE BOARD] may require an impartial 21 medical examination and a hearing in order to determine whether or not to approve the 22 agreement. A [THE BOARD MAY APPROVE] lump-sum settlement may be 23 approved [SETTLEMENTS] when it appears to be to the best interest of the 24 employee or beneficiary or beneficiaries. 25 * Sec. 15. AS 23.30.015(b) is amended to read: 26 (b) Acceptance of compensation under [AN AWARD IN] a compensation 27 order filed with the office of the commission [BY THE BOARD] operates as an 28 assignment to the employer of all rights of the person entitled to compensation and the 29 personal representative of a deceased employee to recover damages from the third 30 person unless the person or representative entitled to compensation commences an 31 action against the third person within one year after an order [AWARD].
01 * Sec. 16. AS 23.30.015(e) is amended to read: 02 (e) An amount recovered by the employer under an assignment, whether by 03 action or compromise, shall be distributed as follows: 04 (1) the employer shall retain an amount equal to 05 (A) the expenses incurred by the employer with respect to the 06 action or compromise, including [A] reasonable attorney fees [FEE] 07 determined by an administrative law judge [THE BOARD]; 08 (B) the cost of all benefits actually furnished by the employer 09 under this chapter; 10 (C) all amounts paid as compensation and second injury 11 [SECOND-INJURY] fund payments, and, if the employer is self-insured or 12 uninsured, all service fees paid under AS 23.05.067; 13 (D) the present value of all amounts payable later as 14 compensation, computed from a schedule prepared by the director [BOARD]; 15 and the present value of the estimated cost of all benefits to be furnished later 16 under AS 23.30.095 [AS ESTIMATED BY THE BOARD]; the amounts so 17 computed and estimated shall [TO] be retained by the employer as a trust fund 18 to pay compensation and the cost of benefits as they become due and to pay 19 any finally remaining excess sum to the person entitled to compensation or to 20 the representative; and 21 (2) the employer shall pay any excess to the person entitled to 22 compensation or to the representative of that person. 23 * Sec. 17. AS 23.30.015(j) is amended to read: 24 (j) Notice of the commencement of an action against a third party shall be 25 given to the division [BOARD] and to all interested parties within 30 days. If a 26 request for a hearing under AS 23.30.110 has been filed, notice of the 27 commencement of the action shall also be filed with the commission. 28 * Sec. 18. AS 23.30.025(a) is amended to read: 29 (a) An insurer may not enter into or issue a policy of insurance under this 30 chapter until its policy form has been submitted to and approved by the director of the 31 division of insurance. The director of the division of insurance may not approve the
01 policy form of an insurance company until the company files with it the certificate of 02 the director of the division of insurance showing that the company is authorized to 03 transact the business of workers' compensation insurance in the state. The filing of a 04 policy form by an insurance company with the division of workers' compensation 05 [BOARD] for approval constitutes, on the part of the company, a conclusive and 06 unqualified acceptance of the provisions of this chapter [,] and an agreement by it to 07 be bound by them. 08 * Sec. 19. AS 23.30.030(5) is amended to read: 09 (5) A termination of the policy by cancellation is not effective as to the 10 employees of the insured employer covered by it until 20 days after written notice of 11 the termination has been received by the division [BOARD]. If the employer has a 12 contract with the state or a home rule or other political subdivision of the state, and the 13 employer's policy is cancelled due to nonpayment of a premium, the termination of the 14 policy is not effective as to the employees of the insured employer covered by it until 15 20 days after written notice of the termination has been received by the contracting 16 agency, and the agency has the option of continuing the payments on behalf of the 17 employer in order to keep the policy in force. If, however, the employer has secured 18 insurance with another insurance carrier, cancellation is effective as of the date of the 19 new coverage. 20 * Sec. 20. AS 23.30.030(6) is amended to read: 21 (6) All claims for compensation, death benefits, physician's fees, 22 nurse's charges, hospital services, hospital supplies, medicines, prosthetic devices, 23 transportation charges to the nearest point where adequate medical facilities are 24 available, and burial expenses [,] may be made directly against either the employer or 25 the insurer, or both, and the order or award of an administrative law judge [THE 26 BOARD] may be made against either the employer or the insurer or both. 27 * Sec. 21. AS 23.30.040(a) is amended to read: 28 (a) There is created a second injury fund, administered by the director 29 [COMMISSIONER]. Money in the second injury fund may only be paid for the 30 benefit of those persons entitled to payment of benefits from the second injury fund 31 under this chapter. Payments from the second injury fund must be made by the
01 director [COMMISSIONER] in accordance with the orders [AND AWARDS] of an 02 administrative law judge [THE BOARD]. 03 * Sec. 22. AS 23.30.040(d) is amended to read: 04 (d) The director [BOARD] may refund a payment made into the second 05 injury fund if the employer or insurance carrier shows that it made the payment by 06 mistake or inadvertence, or if it shows there existed at the time of the death of the 07 employee a beneficiary entitled to benefits under AS 23.30.215. 08 * Sec. 23. AS 23.30.041(a) is amended to read: 09 (a) The director [BOARD] shall select and employ a reemployment benefits 10 administrator. The director [BOARD] may authorize the administrator to select and 11 employ additional staff. The administrator is in the partially exempt service under 12 AS 39.25.120. 13 * Sec. 24. AS 23.30.041(b) is amended to read: 14 (b) The administrator shall 15 (1) enforce regulations adopted by the department [BOARD] to 16 implement this section; 17 (2) recommend regulations for adoption by the department [BOARD] 18 that establish performance and reporting criteria for rehabilitation specialists; 19 (3) enforce the quality and effectiveness of reemployment benefits 20 provided for under this section; 21 (4) review on an annual basis the performance of rehabilitation 22 specialists to determine continued eligibility for delivery of rehabilitation services; 23 (5) submit to the department, on or before May 1 of each year, a report 24 of reemployment benefits provided under this section for the previous calendar year; 25 the report must include a general section, sections related to each rehabilitation 26 specialist employed under this section, and a statistical summary of all rehabilitation 27 cases, including 28 (A) the estimated and actual cost of each active rehabilitation 29 plan; 30 (B) the estimated and actual time of each rehabilitation plan; 31 (C) a status report on all individuals completing or terminating
01 a reemployment benefits program including a return to work date; 02 (D) the cost of reemployment benefits; 03 (6) maintain a list of rehabilitation specialists who meet the 04 qualifications established under this section; 05 (7) promote awareness among physicians, adjusters, injured workers, 06 employers, employees, attorneys, training providers, and rehabilitation specialists of 07 the reemployment program established in this subsection. 08 * Sec. 25. AS 23.30.041(d) is amended to read: 09 (d) Within 30 days after the referral by the administrator, the rehabilitation 10 specialist shall perform the eligibility evaluation and issue a report of findings. The 11 administrator may grant up to an additional 30 days for performance of the eligibility 12 evaluation upon notification of unusual and extenuating circumstances and the 13 rehabilitation specialist's request. Within 14 days after receipt of the report from the 14 rehabilitation specialist, the administrator shall notify the parties of the employee's 15 eligibility for reemployment preparation benefits. Within 10 days after the decision, 16 either party may seek review of the decision by requesting a hearing under 17 AS 23.30.110. The hearing shall be held within 30 days after it is requested. The 18 administrative law judge [BOARD] shall uphold the decision of the administrator 19 except for abuse of discretion on the administrator's part. 20 * Sec. 26. AS 23.30.041(h) is amended to read: 21 (h) Within 90 days after the rehabilitation specialist's selection under (g) of 22 this section, the reemployment plan must be formulated and approved. The 23 reemployment plan must require continuous participation by the employee and must 24 maximize the usage of the employee's transferable skills. The reemployment plan 25 must include at least the following: 26 (1) a determination of the occupational goal in the labor market; 27 (2) an inventory of the employee's technical skills, transferable skills, 28 physical and intellectual capacities, academic achievement, emotional condition, and 29 family support; 30 (3) a plan to acquire the occupational skills to be employable; 31 (4) the cost estimate of the reemployment plan, including provider
01 fees; and the cost of tuition, books, tools [,] and supplies, transportation, temporary 02 lodging, or job modification devices; 03 (5) the estimated length of time that the plan will take; 04 (6) the date that the plan will commence; 05 (7) the estimated time of medical stability as predicted by a treating 06 physician or by a physician who has examined the employee at the request of the 07 employer or the director [BOARD], or by referral of the treating physician; 08 (8) a detailed description and plan schedule; 09 (9) a finding by the rehabilitation specialist that the inventory under (2) 10 of this subsection indicates that the employee can be reasonably expected to 11 satisfactorily complete the plan and perform in a new occupation within the time and 12 cost limitations of the plan; and 13 (10) a provision requiring that, after a person has been assigned to 14 perform medical management services for an injured employee, the person shall send 15 written notice to the employee, the employer, and the employee's physician explaining 16 in what capacity the person is employed, whom the person represents, and the scope of 17 the services to be provided. 18 * Sec. 27. AS 23.30.041(j) is amended to read: 19 (j) The employee, rehabilitation specialist, and the employer shall sign the 20 reemployment benefits plan. If the employer and employee fail to agree on a 21 reemployment plan, either party may submit a reemployment plan for approval to the 22 administrator; the administrator shall approve or deny a plan within 14 days after the 23 plan is submitted; within 10 days after [OF] the decision, either party may seek 24 review of the decision by requesting a hearing under AS 23.30.110; an 25 administrative law judge [THE BOARD] shall uphold the decision of the 26 administrator unless evidence is submitted supporting an allegation of abuse of 27 discretion on the part of the administrator; an administrative law judge [THE 28 BOARD] shall render a decision within 30 days after completion of the hearing. 29 * Sec. 28. AS 23.30.041(o) is amended to read: 30 (o) Upon the request of either party, the administrator shall decide whether the 31 employee has not cooperated as provided under (n) of this section. A hearing before
01 the administrator shall be held within 30 days after it is requested. The administrator 02 shall issue a decision within 14 days after the hearing. Within 10 days after the 03 administrator files the decision, either party may seek review of the decision by 04 requesting a hearing under AS 23.30.110; an administrative law judge [THE 05 BOARD] shall uphold the decision of the administrator unless evidence is submitted 06 supporting an allegation of abuse of discretion on the part of the administrator; an 07 administrative law judge [THE BOARD] shall render a decision within 30 days after 08 completion of the hearing. 09 * Sec. 29. AS 23.30.041(p) is amended to read: 10 (p) When the United States Department of Labor publishes a new edition, 11 revision, or replacement for the "Selected Characteristics of Occupations Defined in 12 the Revised Dictionary of Occupational Titles" referred to in (e) of this section, the 13 director [BOARD] shall, not later than 90 days after the last day of the month in 14 which the new edition, revision, or replacement standard is published, hold an open 15 meeting under AS 44.62.310 to select the proposed date on which the new edition, 16 revision, or replacement standard will be implemented to make all eligibility 17 determinations required under (e) of this section. The date selected by the 18 department [BOARD] for implementing the new edition, revision, or replacement 19 standard may not be later than 90 days after the last day of the month in which the new 20 edition, revision, or replacement standard is published. After the meeting, the 21 director [BOARD] shall issue a public notice announcing the date selected by the 22 department. The requirements of AS 44.62.010 - 44.62.300 do not apply to the 23 selection or announcement of the date under this subsection. 24 * Sec. 30. AS 23.30.041(q) is amended to read: 25 (q) Notwithstanding AS 23.30.012, after medical stability has been determined 26 and a physician has predicted that the employee may have a permanent impairment 27 that may cause the employee to have permanent physical capacities that are less than 28 the physical demands of the employee's job at the time of injury, an employee may 29 waive any benefits or rights under this section, including an eligibility evaluation and 30 benefits related to a reemployment plan. To waive any benefits or rights under this 31 section, an employee must file a statement under oath with the division [BOARD] to
01 notify the parties of the waiver and to specify the scope of benefits or rights that the 02 employee seeks to waive. The statement must be on a form prescribed or approved by 03 the director [BOARD]. The division [BOARD] shall serve the notice of waiver on 04 all parties to the claim within 10 days after filing. The waiver is effective upon service 05 to the party. A waiver effective under this subsection discharges the liability of the 06 employer for the benefits or rights contained in this section. The waiver may not be 07 modified under AS 23.30.130. 08 * Sec. 31. AS 23.30.045(d) is amended to read: 09 (d) A contract may not be awarded by the state or a home rule or other 10 political subdivision of the state unless the person to whom the contract is to be 11 awarded has submitted to the contracting agency proof, furnished by the insurance 12 carrier, of current coverage by workers' compensation insurance from an insurance 13 company or association authorized to transact the business of workers' compensation 14 insurance in this state or proof, furnished by the division [BOARD], of a current 15 certificate of self-insurance from the director [BOARD]. The person to whom the 16 contract is awarded shall keep the workers' compensation insurance policy in effect 17 during the life of the contract with the state or political subdivision. If the state or the 18 political subdivision of the state fails to obtain proof of coverage or self-insurance or 19 to protect itself under (e) of this section, and an employee of the contractor is injured 20 during the term of the contract, the state or the political subdivision is liable for 21 workers' compensation to the employee if the employee is unable to recover from the 22 employer because of the employer's lack of financial assets. The state or the political 23 subdivision is not liable, however, to the employee for workers' compensation if the 24 employee can recover from the employer under (a) and (b) of this section. 25 * Sec. 32. AS 23.30.045(e) is amended to read: 26 (e) When a contracting agency of the state or a political subdivision receives 27 notice that the workers' compensation insurance policy of an employer to whom the 28 agency has awarded a contract has been cancelled due to nonpayment of a premium, 29 without being replaced by a comparable policy, the agency may either terminate the 30 contract with the employer or continue the premium payments on behalf of the 31 employer in order to keep the policy in force during the life of the agency's contract.
01 If the agency chooses to keep the policy in force, it may deduct its payments from the 02 contract price or bring an action against the employer to recover the amount of the 03 payments. When the contracting agency receives notice that the director [BOARD] 04 has revoked a certificate of self-insurance held by a person to whom a contract has 05 been awarded, the agency may terminate the contract. This subsection does not limit 06 the causes of action or remedies that the state or political subdivision may have against 07 the employer. 08 * Sec. 33. AS 23.30.065 is amended to read: 09 Sec. 23.30.065. Employer's record of injuries. An employer shall keep a 10 record in respect of an injury to an employee. The record must contain the 11 information of disease, other disability, or death with [IN] respect to an injury that the 12 division [BOARD] requires, and must be available to inspection by the division 13 [BOARD] or by a state authority at the times and under the conditions that the 14 department [BOARD] prescribes by regulation. 15 * Sec. 34. AS 23.30.070(a) is amended to read: 16 (a) Within 10 days from the date the employer has knowledge of an injury or 17 death or from the date the employer has knowledge of a disease or infection, alleged 18 by the employee or on behalf of the employee to have arisen out of and in the course 19 of the employment, the employer shall send to the division [BOARD] a report setting 20 out 21 (1) the name, address, and business of the employer; 22 (2) the name, address, and occupation of the employee; 23 (3) the cause and nature of the alleged injury or death; 24 (4) the year, month, day, and hour when and the particular locality 25 where the alleged injury or death occurred; and 26 (5) the other information that the division [BOARD] may require. 27 * Sec. 35. AS 23.30.070(b) is amended to read: 28 (b) Additional reports with [IN] respect to the injury and to the condition of 29 the employee shall be sent by the employer to the division [BOARD] at the times and 30 in the manner that the director [BOARD] prescribes. 31 * Sec. 36. AS 23.30.070(d) is amended to read:
01 (d) Mailing of the report and copy to the division [BOARD] in a stamped 02 envelope, within the time prescribed in (a) or (b) of this section, is compliance with 03 this section. 04 * Sec. 37. AS 23.30.070(f) is amended to read: 05 (f) An employer who fails or refuses to send a report required of the employer 06 by this section or who fails or refuses to send the report required by (a) of this section 07 within the time required shall, if so required by an administrative law judge after a 08 hearing [THE BOARD], pay the employee or the legal representative of the employee 09 or other person entitled to compensation by reason of the employee's injury or death 10 an additional award equal to 20 percent of the amounts that were unpaid when due. 11 The award shall be against either the employer or the insurance carrier, or both. 12 * Sec. 38. AS 23.30.075 is amended to read: 13 Sec. 23.30.075. Employer's liability to pay. (a) An employer under this 14 chapter, unless exempted, shall either insure and keep insured for the employer's 15 liability under this chapter in an insurance company or association duly authorized to 16 transact the business of workers' compensation insurance in this state, or shall furnish 17 the division [BOARD] satisfactory proof of the employer's financial ability to pay 18 directly the compensation provided for. If an employer elects to pay directly, the 19 director [BOARD] may, in the director's [ITS] discretion, require the deposit of an 20 acceptable security, indemnity, or bond to secure the payment of compensation 21 liabilities as they are incurred. 22 (b) If an employer fails to insure and keep insured employees subject to this 23 chapter or fails to obtain a certificate of self-insurance from the division [BOARD], 24 upon conviction, the court shall impose a fine of $10,000 and may impose a sentence 25 of imprisonment for not more than one year. If an employer is a corporation, all 26 persons who, at the time of the injury or death, had authority to insure the corporation 27 or apply for a certificate of self-insurance, and the person actively in charge of the 28 business of the corporation shall be subject to the penalties prescribed in this 29 subsection and shall be personally, jointly, and severally liable together with the 30 corporation for the payment of all compensation or other benefits for which the 31 corporation is liable under this chapter if the corporation at that time is not insured or
01 qualified as a self-insurer. 02 * Sec. 39. AS 23.30.080(d) is amended to read: 03 (d) If an employer fails to insure or provide security as required by 04 AS 23.30.075, the director [BOARD] may petition to issue a stop order prohibiting 05 the use of employee labor by the employer until the employer insures or provides 06 security as required by AS 23.30.075. The failure of an employer to file evidence of 07 compliance as required by AS 23.30.085 creates a rebuttable presumption that the 08 employer has failed to insure or provide security as required by AS 23.30.075. The 09 petition shall be filed in the office of the commission. An administrative law 10 judge shall hear the petition within 20 days after service of the petition on the 11 employer. If the director presents evidence with the petition that hazards in the 12 employment constitute a danger that could reasonably be expected to 13 immediately cause an employee death or serious physical harm, the petition may 14 be heard on shortened notice. The administrative law judge shall issue a decision 15 on the petition within seven days after the hearing. If an employer fails to comply 16 with a stop order issued under this section, an administrative law judge [THE 17 BOARD] shall assess a civil penalty of $1,000 a [PER] day. The employer may not 18 obtain a public contract with the state or a political subdivision of the state for three 19 years following the violation of the stop order. 20 * Sec. 40. AS 23.30.080 is amended by adding new subsections to read: 21 (e) If an employer fails, refuses, or neglects to insure or provide security as 22 required by AS 23.30.075(a), the director may petition to order payment of a civil 23 penalty to the state of an amount up to $100 for each employee for each day an 24 employee is employed while the employer is uninsured or does not provide the 25 security required by AS 23.30.075(a). The failure of an employer to file evidence of 26 compliance as required by AS 23.30.085 creates a rebuttable presumption that the 27 employer has failed to obtain and keep insurance or provide security as required by 28 AS 23.30.075(a). The petition shall be filed in the office of the commission. An 29 administrative law judge shall hear the petition within 20 days after service of the 30 petition on the employer. If the director presents evidence with the petition that 31 hazards in the employment constitute a danger that could reasonably be expected to
01 immediately cause an employee death or serious physical harm, the petition may be 02 heard on shortened notice. The administrative law judge shall issue a decision on the 03 petition within seven days after the hearing. 04 (f) If an employer fails to pay a civil penalty ordered under (d) or (e) of this 05 section within seven days after the date of service of the order upon the employer, the 06 director may declare the employer in default. The director shall file a certified copy of 07 the penalty order and declaration of default with the clerk of the superior court. The 08 court shall, upon the filing of the copy of the order and declaration, enter judgment for 09 the amount declared in default if it is in accordance with law. Anytime after a 10 declaration of default, the attorney general, when requested to do so by the director, 11 shall take appropriate action to assure collection of defaulted payment. Review of the 12 judgment may be had as provided under the Alaska Rules of Civil Procedure. Final 13 proceedings to execute the judgment may be had by writ of execution. 14 * Sec. 41. AS 23.30.085(a) is amended to read: 15 (a) An employer subject to this chapter, unless exempted, shall initially file 16 evidence of compliance with the insurance provisions of this chapter with the division 17 [BOARD], in the form prescribed by the director [IT]. The employer shall also give 18 evidence of compliance within 10 days after the termination of the employer's 19 insurance by expiration or cancellation. These requirements do not apply to an 20 employer who has certification from the division [BOARD] of the employer's 21 financial ability to pay compensation directly without insurance. 22 * Sec. 42. AS 23.30.090 is amended to read: 23 Sec. 23.30.090. Self-insurance certificates. If an employer has complied 24 with the provisions of this chapter relating to self-insurance and has paid annual 25 service fees assessed under AS 23.05.067, the director [BOARD] shall issue the 26 employer a certificate that shall remain in force for a period fixed by the director 27 [BOARD]. The director [BOARD] may, upon at least 10 days' notice and a hearing, 28 revoke a self-insurance certificate upon satisfactory proof that an employer is no 29 longer entitled to it. The hearing shall be conducted by an administrative law 30 judge within 20 days after service of the director's notice. Within 14 days after 31 the hearing, the administrative law judge shall make a proposed decision to the
01 director, who may adopt, amend, or reject it in the director's discretion. After 02 revocation, the director [BOARD] may grant a new certificate to an employer, upon 03 the employer's petition and satisfactory proof of the employer's financial ability as 04 provided in this chapter. An employer authorized as a self-insurer shall provide 05 claims facilities through its own staffed adjusting facilities located within the state, or 06 independent, licensed, resident adjusters with power to effect settlement within the 07 state. 08 * Sec. 43. AS 23.30.090 is amended by adding a new subsection to read: 09 (b) All testimony given before an administrative law judge under this section 10 shall be recorded, but need not be transcribed unless further review is initiated. 11 Hearings shall be open to the public. 12 * Sec. 44. AS 23.30.095(a) is amended to read: 13 (a) The employer shall furnish medical, surgical, and other attendance or 14 treatment, nurse and hospital service, medicine, crutches, and apparatus for the period 15 that [WHICH] the nature of the injury or the process of recovery requires, not 16 exceeding two years from and after the date of injury to the employee. However, if 17 the condition requiring the treatment, apparatus, or medicine is a latent one, the two- 18 year period runs from the time the employee has knowledge of the nature of the 19 employee's disability and its relationship to the employment and after disablement. If 20 [IT SHALL BE ADDITIONALLY PROVIDED THAT, IF] continued treatment or 21 care or both beyond the two-year period is indicated, the injured employee has the 22 right of review by an administrative law judge [THE BOARD]. The administrative 23 law judge [BOARD] may authorize continued treatment or care or both as the process 24 of recovery may require. When medical care is required, the injured employee may 25 designate a licensed physician to provide all medical and related benefits. The 26 employee may not make more than one change in the employee's choice of attending 27 physician without the written consent of the employer. Referral to a specialist by the 28 employee's attending physician is not considered a change in physicians. Upon 29 procuring the services of a physician, the injured employee shall give proper 30 notification of the selection to the employer within a reasonable time after first being 31 treated. Notice of a change in the attending physician shall be given before the
01 change. 02 * Sec. 45. AS 23.30.095(c) is amended to read: 03 (c) A claim for medical or surgical treatment [,] or treatment requiring 04 continuing and multiple treatments of a similar nature is not valid and enforceable 05 against the employer unless, within 14 days following treatment, the physician or 06 health care provider giving the treatment or the employee receiving it furnishes to the 07 employer and the division [BOARD] notice of the injury and treatment, preferably on 08 a form prescribed by the director [BOARD]. An administrative law judge [THE 09 BOARD] shall, however, excuse the failure to furnish notice within 14 days when the 10 administrative law judge [IT] finds it to be in the interest of justice to do so, and the 11 administrative law judge [IT] may, upon application by a party in interest, make an 12 award for the reasonable value of the medical or surgical treatment so obtained by the 13 employee. When a claim is made for a course of treatment requiring continuing and 14 multiple treatments of a similar nature, in addition to the notice, the physician or 15 health care provider shall furnish a written treatment plan if the course of treatment 16 will require more frequent outpatient visits than the standard treatment frequency for 17 the nature and degree of the injury and the type of treatments. The treatment plan 18 shall be furnished to the employee and the employer within 14 days after treatment 19 begins. The treatment plan must include objectives, modalities, frequency of 20 treatments, and reasons for the frequency of treatments. If the treatment plan is not 21 furnished as required under this subsection, neither the employer nor the employee 22 may be required to pay for treatments that exceed the frequency standard. The 23 director shall propose and the department [BOARD] shall adopt regulations 24 establishing standards for frequency of treatment. 25 * Sec. 46. AS 23.30.095(d) is amended to read: 26 (d) If at any time during the period the employee unreasonably refuses to 27 submit to medical or surgical treatment, an administrative law judge [THE BOARD] 28 may by order suspend the payment of further compensation while the refusal 29 continues, and no compensation may be paid at any time during the period of 30 suspension, unless the circumstances justified the refusal. 31 * Sec. 47. AS 23.30.095(e) is amended to read:
01 (e) The employee shall, after an injury, at reasonable times during the 02 continuance of the disability, if requested by the employer or when ordered by an 03 administrative law judge [THE BOARD], submit to an examination by a physician 04 or surgeon of the employer's choice authorized to practice medicine under the laws of 05 the jurisdiction in which the examination occurs, furnished and paid for by the 06 employer. The employer may not make more than one change in the employer's 07 choice of a physician or surgeon without the written consent of the employee. 08 Referral to a specialist by the employer's physician is not considered a change in 09 physicians. An examination requested by the employer not less than 14 days after 10 injury, and every 60 days thereafter, shall be presumed to be reasonable, and the 11 employee shall submit to the examination without further request or order by an 12 administrative law judge [THE BOARD]. Unless medically appropriate, the 13 physician shall use existing diagnostic data to complete the examination. Facts 14 relative to the injury or claim communicated to or otherwise learned by a physician or 15 surgeon who may have attended or examined the employee [,] or who may have been 16 present at an examination are not privileged, either in the hearings provided for in this 17 chapter or an action to recover damages against an employer who is subject to the 18 compensation provisions of this chapter. If an employee refuses to submit to an 19 examination provided for in this section, the employee's rights to compensation shall 20 be suspended until the obstruction or refusal ceases, and the employee's compensation 21 during the period of suspension may, in the discretion of an administrative law judge 22 [THE BOARD] or the court determining an action brought for the recovery of 23 damages under this chapter, be forfeited. In [THE BOARD IN] any case of death, the 24 director may order [REQUIRE] an autopsy at the expense of the party requesting the 25 autopsy. An autopsy may not be held without notice first being given to the widow or 26 widower or next of kin if they reside in the state or their whereabouts can be 27 reasonably ascertained, of the time and place of the autopsy and reasonable time and 28 opportunity given the widow or widower or next of kin to have a representative 29 present to witness the autopsy. If adequate notice is not given, the findings from the 30 autopsy may be suppressed on petition [MOTION] made to an administrative law 31 judge [THE BOARD] or to the superior court, as the case may be.
01 * Sec. 48. AS 23.30.095(f) is amended to read: 02 (f) All fees and other charges for medical treatment or service shall be subject 03 to regulation by the department [BOARD] but may not exceed usual, customary, and 04 reasonable fees for the treatment or service in the community in which it is rendered, 05 as determined by the director [BOARD]. An employee may not be required to pay a 06 fee or charge for medical treatment or service. The director shall propose and the 07 department [BOARD] shall adopt updated usual, customary, and reasonable medical 08 fee schedules at least once each year. 09 * Sec. 49. AS 23.30.095(h) is amended to read: 10 (h) Upon the filing with the division [BOARD] by a party in interest of an 11 application or other pleading, all parties to the proceeding must immediately, or in any 12 event within five days after service of the pleading, send to the division [BOARD] the 13 original signed reports of all physicians relating to the proceedings that [WHICH] 14 they may have in their possession or under their control, and copies of the reports shall 15 be served by the party immediately on any [THE] adverse party. There is a 16 continuing duty on all [THE] parties to [SO] file and serve all the reports during the 17 pendency of the proceeding. 18 * Sec. 50. AS 23.30.095(j) is amended to read: 19 (j) The director [BOARD] may appoint a medical services review committee, 20 or contract with an existing organization in the state or another state, to assist and 21 advise the director [BOARD] in matters involving the appropriateness, necessity, and 22 cost of medical and related services provided under this chapter. 23 * Sec. 51. AS 23.30.095(k) is amended to read: 24 (k) In the event of a medical dispute regarding determinations of causation, 25 medical stability, ability to enter a reemployment plan, degree of impairment, 26 functional capacity, the amount and efficacy of the continuance of or necessity of 27 treatment, or compensability between the employee's attending physician and the 28 employer's independent medical evaluation, the director [BOARD] may require that a 29 second independent medical evaluation be conducted by a physician or physicians 30 selected [BY THE BOARD] from a list established and maintained by the director 31 [BOARD]. The cost of an examination and medical report shall be paid by the
01 employer. The report of an independent medical examiner shall be furnished to the 02 division [BOARD] and to the parties within 14 days after the examination is 03 concluded. A person may not seek damages from an independent medical examiner 04 caused by the rendering of an opinion or providing testimony under this subsection, 05 except in the event of fraud or gross incompetence. 06 * Sec. 52. AS 23.30.100(a) is amended to read: 07 (a) Notice of an injury or death with [IN] respect to which compensation is 08 payable under this chapter shall be given within 30 days after the date of such injury 09 or death to the division [BOARD] and to the employer. 10 * Sec. 53. AS 23.30.100(c) is amended to read: 11 (c) Notice shall be given to the division [BOARD] by delivering it or sending 12 it by mail addressed to the division's [BOARD'S] office, and to the employer by 13 delivering it to the employer or by sending it by mail addressed to the employer at the 14 employer's last known place of business. If the employer is a partnership, the notice 15 may be given to a partner, or, if a corporation, the notice may be given to an agent or 16 officer upon whom legal process may be served or who is in charge of the business in 17 the place where the injury occurred. 18 * Sec. 54. AS 23.30.100(d) is amended to read: 19 (d) Failure to give notice does not bar a claim under this chapter 20 (1) if the employer, an agent of the employer in charge of the business 21 in the place where the injury occurred, or the carrier had knowledge of the injury or 22 death and an administrative law judge [THE BOARD] determines that the employer 23 or carrier has not been prejudiced by failure to give notice; 24 (2) if an administrative law judge [THE BOARD] excuses the failure 25 on the ground that, for some satisfactory reason, notice could not be given; 26 (3) unless objection to the failure is raised before an administrative 27 law judge [THE BOARD] at the first hearing of a claim for compensation with [IN] 28 respect to the injury or death. 29 * Sec. 55. AS 23.30.105(a) is amended to read: 30 (a) The right to compensation for disability under this chapter is barred unless 31 a claim for it is filed within two years after the employee has knowledge of the nature
01 of the employee's disability and its relation to the employment and after disablement. 02 However, the maximum time for filing the claim in any event other than arising out of 03 an occupational disease shall be four years from the date of injury, and the right to 04 compensation for death is barred unless a claim [THEREFOR] is filed within one year 05 after the death, except that, if payment of compensation has been made without an 06 award on account of the injury or death, a claim may be filed within two years after 07 the date of the last payment of benefits under AS 23.30.041, 23.30.180, 23.30.185, 08 23.30.190, 23.30.200, or 23.30.215. In [IT IS ADDITIONALLY PROVIDED THAT, 09 IN] the case of latent defects pertinent to and causing compensable disability, the 10 injured employee has the full right to claim compensation as shall be determined by 11 an administrative law judge [THE BOARD], time limitations notwithstanding. 12 * Sec. 56. AS 23.30.107 is amended to read: 13 Sec. 23.30.107. Release of information. (a) Upon written request, an 14 employee shall provide written authority to the employer, carrier, rehabilitation 15 specialist, or reemployment benefits administrator to obtain medical and rehabilitation 16 information relative to the employee's injury. The request must include notice of the 17 employee's right to file a petition for a protective order with the division [BOARD] 18 and must be served by certified mail to the employee's address on the notice of injury 19 or by hand delivery to the employee. This subsection may not be construed to 20 authorize an employer, carrier, rehabilitation specialist, or reemployment benefits 21 administrator to request medical or other information that is not applicable to the 22 employee's injury. 23 (b) Medical or rehabilitation records in an employee's file maintained by the 24 division or held by the commission or the office of administrative hearings 25 (AS 44.64.010) [BOARD] are not public records subject to public inspection and 26 copying under AS 40.25. This subsection does not prohibit 27 (1) the reemployment benefits administrator, the division, the office of 28 the commission, the office of administrative hearings (AS 44.64.010) [BOARD], or 29 the department from releasing medical or rehabilitation records in an employee's file, 30 without the employee's consent, to a physician providing medical services under 31 AS 23.30.095(k) or 23.30.110(g), a party to a claim filed by the employee, or a
01 governmental agency; or 02 (2) the quoting or discussing of medical or rehabilitation records 03 contained in an employee's file during a hearing on a claim for compensation [,] or in 04 a decision and order of the administrative law judge, the director, or the 05 commission [BOARD]. 06 * Sec. 57. AS 23.30.108 is amended to read: 07 Sec. 23.30.108. Prehearing conferences [PREHEARINGS] on discovery 08 matters; objections to requests for release of information; sanctions for 09 noncompliance. (a) If an employee objects to a request for written authority under 10 AS 23.30.107, the employee must file a petition with the division [BOARD] seeking a 11 protective order within 14 days after service of the request. If the employee fails to 12 file a petition and fails to deliver the written authority as required by AS 23.30.107 13 within 14 days after service of the request, the employee's rights to benefits under this 14 chapter are suspended until the written authority is delivered. 15 (b) If a petition seeking a protective order is filed, the division shall promptly 16 notify the commission, and the commission clerk shall, within seven days, request 17 assignment of an administrative law judge and [BOARD] shall set a prehearing 18 conference with the administrative law judge to occur within 21 days after the 19 filing date of the petition. At a prehearing conference conducted by an 20 administrative law judge [THE BOARD'S DESIGNEE], the administrative law 21 judge [BOARD'S DESIGNEE] has the authority to resolve disputes concerning the 22 written authority. If the administrative law judge [BOARD OR THE BOARD'S 23 DESIGNEE] orders delivery of the written authority and if the employee refuses to 24 deliver it within 10 days after being ordered to do so, the employee's rights to benefits 25 under this chapter are suspended until the written authority is delivered. During any 26 period of suspension under this subsection, the employee's benefits under this chapter 27 are forfeited unless an administrative law judge [THE BOARD], or the court 28 determining an action brought for the recovery of damages under this chapter, 29 determines that good cause existed for the refusal to provide the written authority. 30 (c) At a prehearing conference on discovery matters conducted by an 31 administrative law judge [THE BOARD'S DESIGNEE], the administrative law
01 judge [BOARD'S DESIGNEE] shall direct parties to sign releases or produce 02 documents, or both, if the parties present releases or requests for documents that are 03 likely to lead to admissible evidence relative to an employee's injury. If a party 04 refuses to comply with an order by an administrative law judge [THE BOARD'S 05 DESIGNEE OR THE BOARD] concerning discovery matters, an administrative law 06 judge [THE BOARD] may impose appropriate sanctions in addition to any forfeiture 07 of benefits, including dismissing the party's claim, petition, or defense. A party may 08 petition the commission for expedited review of an order of an administrative law 09 judge on discovery matters within seven days after the date of service of the 10 challenged order, and a party opposing the petition shall respond within seven 11 days after service of the petition. The commission shall determine whether to 12 grant or deny a petition for review within 10 days after a response is due. If [A 13 DISCOVERY DISPUTE COMES BEFORE] the commission grants a petition 14 [BOARD] for expedited review of a discovery determination by an administrative 15 law judge [THE BOARD'S DESIGNEE], the commission [BOARD] may not 16 consider any evidence or argument that was not presented to the administrative law 17 judge [BOARD'S DESIGNEE], but shall determine the issue solely on the basis of the 18 written record. The decision by the commission [BOARD] on a discovery dispute 19 shall be made within 30 days. The commission [BOARD] shall uphold an 20 administrative law judge's [THE DESIGNEE'S] decision except when the 21 administrative law judge's [BOARD'S DESIGNEE'S] determination is an abuse of 22 discretion. 23 * Sec. 58. AS 23.30.110 is amended to read: 24 Sec. 23.30.110. Procedure on claims and petitions. (a) Subject to the 25 provisions of AS 23.30.105, a claim for or petition relating to compensation or 26 benefits or both may be filed with the division [BOARD] in accordance with its 27 regulations at any time after the first seven days of disability following an injury, or at 28 any time after death, and an administrative law judge [THE BOARD] may hear and 29 determine all questions with [IN] respect to the claim or petition. AS 44.64.060 does 30 not apply to hearings under this section. 31 (b) Within 10 days after a claim or petition is filed, the division [BOARD], in
01 accordance with its regulations, shall notify the opposing party, employer, and any 02 other person, other than the claimant or petitioner, whom the director [BOARD] 03 considers an interested party that a claim or petition has been filed. The notice may 04 be served personally [UPON THE EMPLOYER OR OTHER PERSON,] or sent by 05 certified [REGISTERED] mail. 06 (c) Before a hearing is scheduled, the party seeking a hearing shall file with 07 the office of the commission a request for a hearing together with an affidavit stating 08 that the party has completed necessary discovery, has obtained necessary evidence, 09 and is prepared for the hearing. Within seven days after filing of a request for 10 hearing, the commission clerk shall request the chief administrative law judge 11 appointed under AS 44.64.010 to assign an administrative law judge for the 12 hearing. An opposing party shall have 10 days after the hearing request is filed to file 13 a response. If a party opposes the hearing request, an administrative law judge 14 [THE BOARD OR A BOARD DESIGNEE] shall, within 30 days after [OF] the filing 15 of the opposition, conduct a pre-hearing conference, plan the timing and sequence of 16 discovery and other preliminary matters, and set a reasonable hearing date. If 17 opposition is not filed, the administrative law judge shall schedule a hearing not 18 [A HEARING SHALL BE SCHEDULED NO] later than 60 days after the receipt of 19 the hearing request. The administrative law judge [BOARD] shall give each party at 20 least 10 days' notice of the hearing, either personally or by certified mail. After a 21 hearing has been scheduled, the parties may not stipulate to change the hearing date or 22 to cancel, postpone, or continue the hearing, except for good cause as determined by 23 the administrative law judge. The hearing shall be before an administrative law 24 judge unless otherwise provided by this chapter [BOARD]. After completion of 25 the hearing, the administrative law judge [BOARD] shall close the hearing record. 26 If a settlement agreement is reached by the parties less than 14 days before the 27 hearing, the parties shall appear at the time of the scheduled hearing to state the terms 28 of the settlement agreement. Within 30 days after the hearing record closes, the 29 administrative law judge [BOARD] shall file a written [ITS] decision. If the 30 employer controverts a claim on a director-prescribed [BOARD-PRESCRIBED] 31 controversion notice and the employee does not request a hearing within two years
01 following the filing of the controversion notice, the claim is denied. 02 (d) At the hearing, the parties [CLAIMANT AND THE EMPLOYER] may 03 each present evidence with [IN] respect to the claim or petition and may be 04 represented by any person authorized in writing for that purpose. 05 (e) The order of the administrative law judge rejecting the claim or petition, 06 or making the award, referred to in this chapter as a compensation order, shall be filed 07 in the office of the commission [BOARD], and a copy of it shall be sent by certified 08 [REGISTERED] mail to the parties [CLAIMANT AND TO THE EMPLOYER] at 09 the last known address of each. 10 (f) An award of compensation for disability or an order dismissing a claim 11 may be made after the death of an injured employee. 12 (g) An injured employee claiming or entitled to compensation shall submit to 13 the physical examination by a duly qualified physician that an administrative law 14 judge [WHICH THE BOARD] may require. The place or places shall be reasonably 15 convenient for the employee. The physician or physicians as the employee, employer, 16 or carrier may select and pay for may participate in an examination if the employee, 17 employer, or carrier so requests. Proceedings shall be suspended and no compensation 18 may be payable for a period during which the employee refuses to submit to 19 examination. 20 (h) The filing of a hearing request under (c) of this section suspends the 21 running of the two-year time period specified in (c) of this section. However, if the 22 employee subsequently requests a continuance of the hearing and the request is 23 granted [APPROVED BY THE BOARD], the granting of the continuance renders the 24 request for hearing inoperative, and the two-year time period specified in (c) of this 25 section continues to run again from the date of an administrative law judge's [THE 26 BOARD'S] notice to the employee of [THE BOARD'S GRANTING OF] the 27 continuance and of its effect. If the employee fails to again request a hearing before 28 the conclusion of the two-year time period in (c) of this section, the claim is denied. 29 * Sec. 59. AS 23.30.110 is amended by adding new subsections to read: 30 (i) An order dismissing a claim in whole or in part may be made before a 31 hearing on the merits of the claim when (1) the claim requests relief that cannot be
01 granted under this chapter; (2) there is a lack of jurisdiction over the subject matter of 02 the claim or the person under this chapter; (3) division process or service of process 03 was insufficient; (4) the claim has not been prosecuted or a hearing was not requested 04 within the time allowed in (c) of this section; or (5) the claim is barred by a statute of 05 limitation. If, within 60 days after service of an order dismissing a claim under (1) - 06 (3) of this subsection, the defects stated in the order are cured, the dismissal may be 07 vacated. Otherwise, the order of dismissal is a final compensation order. 08 (j) At any time, a party may petition for a summary decision on all or part of a 09 claim. The administrative law judge shall grant the petition if (1) the administrative 10 law judge finds all reasonable discovery has been made on the issues presented; and 11 (2) the record shows that there is no genuine issue of any material fact and that the 12 petitioner is entitled to a decision as a matter of law. The administrative law judge 13 may file a compensation order in favor of the petitioner if the administrative law 14 judge's summary decision adjudicates all issues in the claim with respect to the 15 petitioner. 16 * Sec. 60. AS 23.30 is amended by adding new sections to read: 17 Sec. 23.30.112. Administrative law judges. (a) Unless otherwise provided 18 in this chapter, hearings on claims and petitions shall be conducted by an 19 administrative law judge. In addition to the qualifications provided in AS 44.64.040, 20 an administrative law judge conducting hearings or other proceedings under this 21 chapter must have at least three years of experience in this state in the field of workers' 22 compensation law or in a similar field of practice. 23 (b) An administrative law judge for the purposes of this chapter may 24 (1) subpoena witnesses, administer or cause to be administered oaths, 25 and order production of parts of the books and records of the parties to a proceeding or 26 other records, documents, or papers that relate to questions in dispute; the superior 27 court, on application of the administrative law judge under AS 44.62.590, shall 28 enforce the attendance and testimony of witnesses and the production and examination 29 of books, papers, and records; 30 (2) direct a physician or hospital rendering medical treatment or 31 service under this chapter to furnish to the division periodic reports of treatment or
01 services on forms prescribed by the division; 02 (3) arrange to have hearings held by the commission, officer, or 03 tribunal having authority to hear cases arising under the workers' compensation law of 04 any other state, of the District of Columbia, or of any territory of the United States, 05 when a proceeding in this state so requires; the testimony and proceedings at the 06 hearing shall be reported to the commission and are a part of the record in the case; 07 evidence taken at the hearing is subject to rebuttal upon final hearing under this 08 chapter. 09 Sec. 23.30.113. Hearings before an administrative law judge. (a) 10 Notwithstanding any contrary provision of law, hearings under this chapter before an 11 administrative law judge are to be conducted as provided in AS 23.30.110 and this 12 section, or as otherwise provided under this chapter. Other proceedings under this 13 chapter before an administrative law judge are to be conducted as provided in this 14 chapter or in regulations adopted under this chapter. 15 (b) In conducting a hearing under this chapter, an administrative law judge is 16 not bound by common law or statutory rules of evidence or by technical or formal 17 rules of procedure, except as provided by this chapter and the regulations of the 18 commission. The hearing may be conducted in the manner designed to best ascertain 19 the rights of the parties. In proceedings before administrative law judges, the 20 administrative adjudication procedures of AS 44.62 (Administrative Procedure Act) 21 do not apply, except that AS 44.62.410(b), 44.62.460(a) - (d), 44.62.470, 44.62.480, 22 44.62.510, and 44.62.590 shall apply to proceedings under this chapter. Declarations 23 of a deceased employee concerning the injury with respect to which the investigation 24 or inquiry is being made or the hearing conducted shall be received in evidence and 25 are, if corroborated by other evidence, sufficient to establish the injury. 26 (b) The administrative law judge shall preside over hearings of claims and 27 petitions under this chapter and perform all other functions in an impartial manner 28 with due regard for the rights of all parties and the facts and the law, and consistent 29 with the orderly and prompt dispatch of proceedings under this chapter. The 30 administrative law judge shall rule on questions of procedure, the admission and 31 exclusion of evidence, and make rulings on matters of law.
01 (c) An administrative law judge shall voluntarily seek disqualification and 02 withdraw from a case in which the administrative law judge cannot accord a fair and 03 impartial hearing or consideration, or other reason established under AS 44.64.070. A 04 party may request disqualification of an administrative law judge under AS 44.64.070. 05 Except as otherwise permitted by law, an administrative law judge may not engage in 06 interviews with or hear evidence or argument from, a party directly or indirectly, 07 except upon opportunity for all parties to be present. Copies of all communications to 08 an administrative law judge shall be served on all other parties. 09 (d) All testimony given during a hearing before an administrative law judge 10 shall be recorded but need not be transcribed unless further review is initiated. 11 Hearings before an administrative law judge shall be open to the public. 12 * Sec. 61. AS 23.30.115 is amended to read: 13 Sec. 23.30.115. Attendance and fees of witnesses. (a) A person is not 14 required to attend as a witness in a hearing [PROCEEDING] before the commission 15 or an administrative law judge [BOARD] at a place more than 100 miles from the 16 person's place of residence, unless the person's lawful mileage and fee for one day's 17 attendance is first paid or tendered to the person; but the testimony of a witness may 18 be taken by deposition or interrogatories according to the Rules of Civil Procedure. 19 (b) A witness summoned to testify in a hearing [PROCEEDING] before the 20 commission or an administrative law judge [BOARD] or whose deposition is taken 21 shall receive the same fees and mileage as a witness in the superior court. The 22 commission clerk may issue subpoenas and subpoenas duces tecum to summon a 23 witness to testify in a hearing or deposition and to produce records. The superior 24 court shall enforce the subpoenas on application by the commission in the 25 manner provided in AS 44.62.590. 26 * Sec. 62. AS 23.30.120(b) is amended to read: 27 (b) If delay in giving notice is excused by the administrative law judge 28 [BOARD] under AS 23.30.100(d)(2), the burden of proof of the validity of the claim 29 shifts to the employee, notwithstanding the provisions of (a) of this section. 30 * Sec. 63. AS 23.30.122 is repealed and reenacted to read: 31 Sec. 23.30.122. Credibility of witnesses. The administrative law judge has
01 the sole power to determine the credibility of testimony presented by a witness. When 02 credibility is disputed in a proceeding before the administrative law judge, the 03 administrative law judge's determination of credibility must be supported by specific 04 findings. 05 * Sec. 64. AS 23.30 is amended by adding a new section to read: 06 Sec. 23.30.124. Reconsideration of compensation order. (a) An 07 administrative law judge may order a reconsideration of all or part of a compensation 08 order on the administrative law judge's own motion or on petition of a party. A 09 petition for reconsideration must be filed with the office of the commission within 15 10 days after mailing of the compensation order. The power to order reconsideration 11 expires 30 days after the mailing of a compensation order. If an order of 12 reconsideration is not filed with the office of the commission within the time allowed 13 for ordering reconsideration, the petition is considered denied. 14 (b) If reconsideration is ordered under (a) of this section, the compensation 15 order under reconsideration is stayed until the decision on reconsideration is filed. 16 The case may be reconsidered by the administrative law judge on of all the pertinent 17 parts of the record and the additional arguments that are permitted by the 18 administrative law judge. A written decision on reconsideration shall be filed with the 19 commission within 30 days after the date the order of reconsideration was filed. 20 * Sec. 65. AS 23.30.125 is repealed and reenacted to read: 21 Sec. 23.30.125. Administrative review of compensation order. (a) A 22 compensation order becomes effective when filed with the office of the commission as 23 provided in AS 23.30.110, and, unless proceedings to reconsider, suspend, or set aside 24 the order are instituted as provided in this chapter, the order becomes final on the 31st 25 day after it is filed. 26 (b) Notwithstanding other provisions of law, a decision or order of an 27 administrative law judge is subject to review by the commission as provided in this 28 chapter. 29 (c) If a compensation order is not in accordance with law or fact, the order 30 may be suspended or set aside, in whole or in part, through proceedings in the 31 commission brought by a party in interest against all other parties to the proceedings
01 before the administrative law judge. The payment of the amounts required by an 02 award may not be stayed pending a final decision in the proceeding unless, upon 03 application for a stay, the commission, on hearing, after not less than three days' notice 04 to the parties in interest and the director, allows the stay of payment, in whole or in 05 part, where the party filing the application would otherwise suffer irreparable damage. 06 Continuing future periodic compensation payments may not be stayed without a 07 showing by the appellant of irreparable damage and the existence of the probability of 08 the merits of the appeal being decided adversely to the recipient of compensation. The 09 order of the commission allowing a stay must contain a specific finding, based upon 10 evidence submitted to the commission and identified by reference to the evidence, that 11 irreparable damage would result to the party applying for a stay and specifying the 12 nature of the damage. 13 (d) Proceedings for reconsidering, suspending, setting aside, or enforcing a 14 compensation order, whether rejecting a claim or making an award, may not be 15 instituted, except as provided in this chapter. 16 * Sec. 66. AS 23.30 is amended by adding new sections to read: 17 Sec. 23.30.126. Review of director's decision. (a) A decision by the director 18 that affects a right, privilege, benefit, or duty that is imposed or conferred under this 19 chapter is subject to review by the commission. A decision by the director becomes 20 effective when filed with the division, and, unless proceedings to suspend or set aside 21 the decision are instituted as provided in this section, the decision becomes final on the 22 31st day after it is filed. 23 (b) If a decision of the director is not in accordance with law or fact, the 24 decision may be suspended or set aside, in whole or in part, through proceedings in the 25 commission brought by a party in interest against the director and all other parties to 26 the proceedings. The decision may not be stayed pending final decision in the 27 proceeding unless, upon application for a stay, the commission, on hearing, after not 28 less than three days' notice to the parties in interest and the director, allows the stay, in 29 whole or in part, where irreparable damage would otherwise result. The order of the 30 commission allowing the stay shall contain a specific finding, based upon evidence 31 submitted to the commission and identified by reference to it, that irreparable damage
01 would result to the party applying for a stay, and specifying the nature of the damage. 02 (c) Proceedings for suspending, setting aside, or enforcing a director's decision 03 or determination may not be instituted except as provided in this chapter. 04 Sec. 23.30.127. Appeals to commission. (a) A party in interest may appeal a 05 compensation order issued by an administrative law judge to the commission within 06 30 days after the compensation order is filed with the office of the commission under 07 AS 23.30.110. The director may intervene in an appeal. If a party in interest is not 08 represented by counsel and the compensation order concerns an unsettled question of 09 law, the director may file an appeal to obtain a ruling on the question by the 10 commission. 11 (b) A party in interest may appeal a decision of the director to the commission 12 within 30 days after the decision is filed with the division. 13 (c) An appeal shall be initiated by filing with the office of the commission 14 (1) a signed notice of appeal specifying the compensation order or 15 director's decision appealed from; 16 (2) a statement of the grounds upon which the appeal is taken; and 17 (3) other materials the commission may by regulation require. 18 (d) A cross-appeal may be initiated by filing with the office of the commission 19 a signed notice of cross-appeal within 30 days after the decision is filed or within 15 20 days after service of notice of an appeal, whichever is later. The notice of cross- 21 appeal shall specify the compensation order appealed from and the grounds upon 22 which the cross-appeal is taken. 23 (e) The office of the commission may charge a fee, not to exceed $100, for 24 filing appeals and cross-appeals, except that the office of the commission may not 25 charge a fee if the appellant is the state or a political subdivision of the state. The 26 commission may require an appellant to pay the costs of the transcript of hearing and 27 the preparation of the record on appeal. The commission may require cross-appellants 28 or intervenors to share in the costs. 29 (f) If a request for reconsideration of an administrative law judge's decision is 30 timely filed with the office of the commission, the notice of appeal must be filed 31 within 30 days after the reconsideration decision is mailed to the parties, or the date
01 the request for reconsideration is considered denied, in the absence of any action on 02 the request, whichever is earlier. 03 (g) The commission may require written briefs and make other rules and 04 orders to facilitate the business of the commission and advance the prompt, fair, and 05 just disposition of appeals. 06 Sec. 23.30.128. Commission proceedings. (a) An appeal from a decision of 07 the director or an administrative law judge under this chapter, and other proceedings 08 under this section, shall be heard and decided by a three-member panel of the 09 commission. An appeal panel of the commission must include the chair of the 10 commission. The chair of the commission shall assign two members to each appeal, 11 including one commission member classified as representing employees and one 12 commission member classified as representing employers. Acts, decisions, and orders 13 of the commission panel in the appeal or related proceeding shall be considered the 14 acts, decisions, and orders of the full commission. The matter on appeal shall be 15 decided by the commission panel on the record made before the director or 16 administrative law judge, a transcript or recording of the proceedings before the 17 director or administrative law judge, and oral argument and written briefs allowed by 18 the commission. Except as provided in (c) of this section, new or additional evidence 19 may not be received with respect to the appeal. 20 (b) The commission may review de novo all discretionary actions, findings of 21 fact, and conclusions of law by the administrative law judge, or the director in hearing, 22 determining, or otherwise acting on any compensation claim or petition. An 23 administrative law judge's findings regarding the credibility of testimony of a witness 24 are binding on the commission. The findings of the administrative law judge, if not 25 set aside by the commission, are conclusive. 26 (c) The commission may hold hearings and receive evidence on applications 27 for (1) stays under AS 23.30.125; (2) attorney fees and costs of appeal; (3) waiver of 28 fees by indigent appellants; or (4) dismissal of appeals for failure to prosecute or upon 29 settlement. The commission may rely on new or additional evidence presented during 30 the hearing in making its decision on the application. 31 (d) The commission may affirm, reverse, or modify a decision or order upon
01 review and issue other orders as appropriate. The commission may remand matters it 02 determines were improperly, incompletely, or otherwise insufficiently developed. The 03 commission may remand for further proceedings and appropriate action with or 04 without relinquishing the commission's jurisdiction of the appeal. The administrative 05 adjudication procedures of AS 44.62 (Administrative Procedure Act) do not apply to 06 the proceedings of the commission. 07 (e) Within 90 days after written briefing on the appeal is completed or oral 08 argument is held, whichever is later, the commission shall issue a decision in writing. 09 The decision must contain a concise statement of reasons for the decision, including 10 findings of fact, if required, and conclusions of law. The commission shall serve each 11 party and the director with a copy of the decision. Appeals may be expedited for good 12 cause by the commission. Unless reconsideration is ordered under (f) of this section, a 13 decision under this subsection is the final commission decision. 14 (f) A party or the director may request reconsideration of a decision issued 15 under (e) of this section within 30 days after the date of service shown in the 16 certificate of service of the decision. The request must state specific grounds for 17 reconsideration. Reconsideration may be granted if, in reaching the decision, the 18 commission (1) overlooked, misapplied, or failed to consider a statute, regulation, 19 court or administrative decision, or legal principle directly controlling; (2) overlooked 20 or misconceived a material fact; (3) misconceived a material question in the case; or 21 (4) applied law in the ruling that has subsequently changed. The panel of the 22 commission hearing the request for reconsideration shall consist of the same members 23 of the panel that issued the decision. The commission may issue an order for 24 reconsideration of all or part of the decision upon request of a party or the director. 25 Reconsideration is based on the record, unless the commission allows additional 26 argument. The power to order reconsideration expires 60 days after the date of 27 service, as shown on the certificate of service, of a decision issued under (e) of this 28 section. If the commission does not issue an order for reconsideration within the time 29 allowed for ordering reconsideration, a request for reconsideration is considered 30 denied. If reconsideration is ordered, the commission shall issue a decision within 30 31 days after the close of the record on reconsideration. The commission shall serve each
01 party in the case with a copy of the decision upon reconsideration. The decision upon 02 reconsideration is the final commission decision. 03 (g) A decision of the commission becomes final on the 04 (1) 31st day after the date of service of a decision if reconsideration is 05 not requested; 06 (2) 61st day after the date of service of a decision if reconsideration is 07 requested but an order for reconsideration is not issued; or 08 (3) date of service of the commission decision upon reconsideration 09 under (f) of this section if reconsideration is requested and an order for reconsideration 10 is issued. 11 Sec. 23.30.129. Judicial review of commission orders. (a) Notwithstanding 12 the provisions of AS 44.62.560, orders of the commission may not be appealed to the 13 superior court. Consistent with AS 22.05.010(b), final decisions of the commission 14 may be appealed to the supreme court, and other orders may be reviewed by the 15 supreme court as provided by the Alaska Rules of Appellate Procedure. 16 (b) A finding by the commission concerning the weight to be accorded a 17 witness's testimony, including medical testimony and reports, is conclusive even if the 18 evidence is conflicting or susceptible to contrary conclusions. The commission's 19 findings of fact may be reversed on appeal if not supported by substantial evidence in 20 light of the whole record. 21 * Sec. 67. AS 23.30.130 is amended to read: 22 Sec. 23.30.130. Modification of awards. (a) A party in interest or the 23 director may petition to modify a compensation order [UPON ITS OWN 24 INITIATIVE, OR UPON THE APPLICATION OF ANY PARTY IN INTEREST] on 25 the ground of a change in conditions, including, for the purposes of AS 23.30.175, a 26 change in residence, or because of a mistake in a [ITS] determination of a material 27 fact. An administrative law judge [, THE BOARD] may, before one year after the 28 date of the last payment of compensation benefits under AS 23.30.180, 23.30.185, 29 23.30.190, 23.30.200, or 23.30.215, whether or not a compensation order has been 30 issued, or before one year after the rejection of a claim, act on the petition and 31 review a compensation case under the procedure prescribed with [IN] respect to [OF]
01 claims in AS 23.30.110. Under AS 23.30.110, an administrative law judge [THE 02 BOARD] may issue a new compensation order that [WHICH] terminates, continues, 03 reinstates, increases, or decreases the compensation, or award compensation. 04 (b) A new order does not affect compensation previously paid, except that an 05 award increasing the compensation rate may be made effective from the date of the 06 injury, and, if part of the compensation due or to become due is unpaid, an award 07 decreasing the compensation rate may be made effective from the date of the injury, 08 and payment made earlier in excess of the decreased rate shall be deducted from the 09 unpaid compensation, in the manner the administrative law judge [BOARD] 10 determines. 11 * Sec. 68. AS 23.30.135 is amended to read: 12 Sec. 23.30.135. Procedure before the division [BOARD]. (a) The director 13 in [IN] making a decision on an investigation or inquiry or conducting a hearing, 14 [THE BOARD] is not bound by common law or statutory rules of evidence or by 15 technical or formal rules of procedure, except as provided by this chapter. The 16 director [BOARD] may make an [ITS] investigation or inquiry or conduct a [ITS] 17 hearing in the manner that [BY WHICH IT] may best ascertain the rights of the 18 parties. For purposes of investigation under AS 23.30.011, 23.30.040, 23.30.075, 19 23.30.080, 23.30.085, 23.30.090, 23.30.140, 23.30.155(i), 23.30.155(k), 20 23.30.155(m), 23.30.170, 23.30.240, and 23.30.249(d), the director may subpoena 21 witnesses, administer or cause to be administered oaths, and may examine or 22 cause to be examined books, papers and records relating to the questions under 23 investigation. The superior court shall enforce the subpoenas on application by 24 the director in the manner provided in AS 44.62.590. Declarations of a deceased 25 employee concerning the injury with [IN] respect to which the investigation or inquiry 26 is being made or the hearing conducted shall be received in evidence and are, if 27 corroborated by other evidence, sufficient to establish the injury. 28 (b) All testimony given during a hearing before the director [BOARD] shall 29 be recorded, but need not be transcribed unless further review is initiated. Hearings 30 before the director [BOARD] shall be open to the public. 31 * Sec. 69. AS 23.30.140 is amended to read:
01 Sec. 23.30.140. Appointment of guardian by court. The director 02 [BOARD] may require the appointment of a guardian or other representative by a 03 competent court for any person who is mentally incompetent or a minor to receive 04 compensation payable to the person under this chapter and to exercise the powers 05 granted to or to perform the duties required of the person under this chapter. If the 06 director [BOARD] does not require the appointment of a guardian to receive the 07 compensation of a minor, appointment for this purpose is not necessary. 08 * Sec. 70. AS 23.30.145(a) is amended to read: 09 (a) Fees for legal services rendered with [IN] respect to a claim are not valid 10 unless approved by the administrative law judge [BOARD, AND THE FEES MAY 11 NOT BE LESS THAN 25 PER CENT ON THE FIRST $1,000 OF 12 COMPENSATION OR PART OF THE FIRST $1,000 OF COMPENSATION, AND 13 10 PER CENT OF ALL SUMS IN EXCESS OF $1,000 OF COMPENSATION]. 14 When [THE BOARD ADVISES THAT] a claim has been controverted, in whole or in 15 part, [THE BOARD MAY DIRECT THAT THE] fees for legal services may be paid 16 by the employer or carrier in addition to compensation awarded; the fees may be 17 allowed only on the amount of compensation controverted and awarded. When [THE 18 BOARD ADVISES THAT] a claim has not been controverted, but [FURTHER 19 ADVISES THAT] bona fide legal services have been rendered with [IN] respect to 20 the claim, then the administrative law judge [BOARD] shall direct the payment of 21 the fees out of the compensation awarded. In determining the amount of fees the 22 administrative law judge [BOARD] shall take into consideration the nature, length, 23 and complexity of the services performed, transportation charges, and the benefits 24 resulting from the services to the compensation beneficiaries. 25 * Sec. 71. AS 23.30.145(b) is amended to read: 26 (b) If an employer fails to file timely notice of controversy or fails to pay 27 compensation or medical and related benefits within 15 days after it becomes due or 28 otherwise resists the payment of compensation or medical and related benefits and if 29 the claimant has employed an attorney in the successful prosecution of the claim, an 30 administrative law judge [THE BOARD] shall make an award to reimburse the 31 claimant for the costs in the proceedings, including [A] reasonable attorney fees
01 [FEE]. The award is in addition to the compensation or medical and related benefits 02 ordered. 03 * Sec. 72. AS 23.30.155(a) is amended to read: 04 (a) Compensation under this chapter shall be paid periodically, promptly, and 05 directly to the person entitled to it, without an award, except where liability to pay 06 compensation is controverted by the employer. To controvert a claim, the employer 07 must file a notice, on a form prescribed by the director [BOARD], stating 08 (1) that the right of the employee to compensation is controverted; 09 (2) the name of the employee; 10 (3) the name of the employer; 11 (4) the date of the alleged injury or death; and 12 (5) the type of compensation and all grounds upon which the right to 13 compensation is controverted. 14 * Sec. 73. AS 23.30.155(b) is amended to read: 15 (b) The first installment of compensation becomes due on the 14th day after 16 the employer has knowledge of the injury or death. On this date all compensation then 17 due shall be paid. Subsequent compensation shall be paid in installments, every 14 18 days, except where an administrative law judge [THE BOARD] determines that 19 payment in installments should be made monthly or at some other period. 20 * Sec. 74. AS 23.30.155(c) is amended to read: 21 (c) The insurer or adjuster shall notify the division [BOARD] and the 22 employee on a form prescribed by the director [BOARD] that the payment of 23 compensation has begun or has been increased, decreased, suspended, terminated, 24 resumed, or changed in type. An initial report shall be filed with the division 25 [BOARD] and sent to the employee within 28 days after the date of issuing the first 26 payment of compensation. If at any time 21 days or more pass and no compensation 27 payment is issued, a report notifying the division [BOARD] and the employee of the 28 termination or suspension of compensation shall be filed with the division [BOARD] 29 and sent to the employee within 28 days after the date the last compensation payment 30 was issued. A report shall also be filed with the division [BOARD] and sent to the 31 employee within 28 days after the date of issuing a payment increasing, decreasing,
01 resuming, or changing the type of compensation paid. If the division [BOARD] and 02 the employee are not notified within the 28 days prescribed by this subsection for 03 reporting, the insurer or adjuster shall pay a civil penalty of $100 for the first day plus 04 $10 for each day after the first day [THEREAFTER] that the notice was not given. 05 Total penalties under this subsection may not exceed $1,000 for a failure to file a 06 required report. Penalties assessed under this subsection are eligible for reduction 07 under (m) of this section. A penalty assessed under this subsection after penalties 08 have been reduced under (m) of this section shall be increased by 25 percent and shall 09 bear interest at the rate established under AS 45.45.010. 10 * Sec. 75. AS 23.30.155(d) is amended to read: 11 (d) If the employer controverts the right to compensation, the employer shall 12 file with the division [BOARD] and send to the employee a notice of controversion on 13 or before the 21st day after the employer has knowledge of the alleged injury or death. 14 If the employer controverts the right to compensation after payments have begun, the 15 employer shall file with the division [BOARD] and send to the employee a notice of 16 controversion within seven days after an installment of compensation payable without 17 an award is due. When payment of temporary disability benefits is controverted solely 18 on the grounds that another employer or another insurer of the same employer may be 19 responsible for all or a portion of the benefits, the most recent employer or insurer 20 who is party to the claim and who may be liable shall make the payments during the 21 pendency of the dispute. When a final determination of liability is made, any 22 reimbursement required, including interest at the statutory rate, and all costs and 23 attorney [ATTORNEYS'] fees incurred by the prevailing employer, shall be made 24 within 14 days after [OF] the determination. 25 * Sec. 76. AS 23.30.155(e) is amended to read: 26 (e) If any installment of compensation payable without an award is not paid 27 within seven days after it becomes due, as provided in (b) of this section, there shall be 28 added to the unpaid installment an amount equal to 25 percent of it. This additional 29 amount shall be paid at the same time as, and in addition to, the installment, unless 30 notice is filed under (d) of this section or unless the nonpayment is excused by an 31 administrative law judge [THE BOARD] after a showing by the employer that,
01 owing to conditions over which the employer had no control, the installment could not 02 be paid within the period prescribed for the payment. 03 * Sec. 77. AS 23.30.155(f) is amended to read: 04 (f) If compensation payable under the terms of an award is not paid within 14 05 days after it becomes due, there shall be added to that unpaid compensation an amount 06 equal to 25 percent of it, which shall be paid at the same time as, but in addition to, the 07 compensation, unless review of the compensation order making the award is had as 08 provided in AS 23.30.125 and payment is stayed by an order of the commission 09 [INTERLOCUTORY INJUNCTION STAYING PAYMENTS IS ALLOWED BY 10 THE COURT]. 11 * Sec. 78. AS 23.30.155(h) is amended to read: 12 (h) The director may initiate an investigation, have a medical examination 13 performed at the division's expense, or file a petition on a disputed matter for 14 hearing [BOARD MAY UPON ITS OWN INITIATIVE] at any time in a case in 15 which payments are being made with or without an award, where right to 16 compensation is controverted, or where payments of compensation have been 17 increased, reduced, terminated, changed, or suspended, upon receipt of notice from a 18 person entitled to compensation, or from the employer, that the right to compensation 19 is controverted, or that payments of compensation have been increased, reduced, 20 terminated, changed, or suspended. The director may then [, MAKE THE 21 INVESTIGATIONS, CAUSE THE MEDICAL EXAMINATIONS TO BE MADE, 22 OR HOLD THE HEARINGS, AND] take the further action considered necessary to 23 [WHICH IT CONSIDERS WILL] properly protect the rights of all parties. 24 * Sec. 79. AS 23.30.155(i) is amended to read: 25 (i) When the director [BOARD] considers it advisable, the director [IT] may 26 require an employer to make a deposit with the Department of Revenue to secure the 27 prompt and convenient payment of the compensation, and payments from the deposit 28 upon an award shall be made upon order of the director [BOARD]. 29 * Sec. 80. AS 23.30.155(j) is amended to read: 30 (j) If an employer has made advance payments or overpayments of 31 compensation, the employer is entitled to be reimbursed by withholding up to 20
01 percent out of each unpaid installment or installments of compensation due. More 02 than 20 percent of unpaid installments of compensation due may be withheld from an 03 employee only on approval of an administrative law judge [THE BOARD]. 04 * Sec. 81. AS 23.30.155(k) is amended to read: 05 (k) An injured employee [,] or, in the case of death, the employee's 06 dependents or personal representative [,] shall give receipts for payment of 07 compensation to the employer paying the compensation, [IT] and the employer shall 08 produce the receipts [THEM] for inspection by the director [BOARD], whenever 09 required. 10 * Sec. 82. AS 23.30.155(m) is amended to read: 11 (m) On or before March 1 of each year, the insurer or adjuster shall file a 12 verified annual report on a form prescribed by the director [BOARD] stating the total 13 amount of all compensation by type, the number of claims received and the percentage 14 controverted, medical, and related benefits, vocational rehabilitation expenses, legal 15 fees, including a separate total of fees paid to attorneys and fees paid for the other 16 costs of litigation, and penalties paid on all claims during the preceding calendar year. 17 If the annual report is timely and complete when received by the division [BOARD] 18 and provides accurate information about each category of payments, the director 19 [COMMISSIONER] shall review the timeliness of the insurer's or adjuster's reports 20 filed during the preceding year under (c) of this section. If, during the preceding year, 21 the insurer or adjuster filed at least 99 percent of the reports on time, the penalties 22 assessed under (c) of this section shall be waived. If, during the preceding year, the 23 insurer or adjuster filed at least 97 percent of the reports on time, 75 percent of the 24 penalties assessed under (c) of this section shall be waived. If, during the preceding 25 year, the insurer or adjuster filed 95 percent of the reports on time, 50 percent of the 26 penalties assessed under (c) of this section shall be waived. If, during the preceding 27 year, the insurer's or adjuster's reports have not been filed on time at least 95 percent 28 of the time, none of the penalties assessed under (c) of this section shall be waived. 29 The penalties that are not waived are due and payable when the insurer or adjuster 30 receives notification from the director [COMMISSIONER] regarding the timeliness 31 of the reports. If the annual report is not filed by March 1 of each year, the insurer or
01 adjuster shall pay a civil penalty of $100 for the first day the annual report is late [,] 02 and $10 for each additional day the report is late. If the annual report is incomplete 03 when filed, the insurer or adjuster shall pay a civil penalty of $1,000. 04 * Sec. 83. AS 23.30.155(o) is amended to read: 05 (o) The director [BOARD] shall promptly notify the division of insurance if 06 an administrative law judge [THE BOARD] determines that the employer's insurer 07 has frivolously or unfairly controverted compensation due under this chapter. After 08 receiving notice from the director [BOARD], the division of insurance shall 09 determine if the insurer has committed an unfair claim settlement practice under 10 AS 21.36.125. 11 * Sec. 84. AS 23.30.170(a) is amended to read: 12 (a) In case of default by the employer in the payment of compensation due 13 under an award of compensation for a period of 30 days after the compensation is due, 14 the person to whom the compensation is payable may, within one year after the 15 default, file a petition with the division [APPLY TO THE BOARD MAKING THE 16 COMPENSATION ORDER] for a supplementary order declaring the amount of the 17 default. After the completion of any investigation the director considers necessary, 18 and upon [,] notice [,] and hearing, as provided in AS 23.30.110, an administrative 19 law judge may [THE BOARD SHALL] make a supplementary order declaring the 20 amount of the default. The order shall be filed in the same manner as the 21 compensation order. 22 * Sec. 85. AS 23.30.170(b) is amended to read: 23 (b) If the payment in default is an installment of the award, an administrative 24 law judge has [THE BOARD MAY, IN ITS] discretion to [,] declare the whole of the 25 award as the amount in default. The petitioner [APPLICANT] may file a certified 26 copy of the supplementary order with the clerk of the superior court. The 27 supplementary order is final. The court shall, upon the filing of the copy, enter 28 judgment for the amount declared in default by the supplementary order if it is in 29 accordance with law. Any time after a supplementary order is filed [BY THE 30 BOARD], the attorney general, when requested to do so by the director 31 [COMMISSIONER], shall take appropriate action to ensure [ASSURE] collection of
01 the defaulted payments. 02 * Sec. 86. AS 23.30.175(a) is amended to read: 03 (a) The weekly rate of compensation for disability or death may not exceed 04 the maximum compensation rate, may not be less than 22 percent of the maximum 05 compensation rate, and initially may not be less than $110. However, if an 06 administrative law judge [THE BOARD] determines that the employee's spendable 07 weekly wages are less than $110 a week as computed under AS 23.30.220, or less than 08 22 percent of the maximum compensation rate a week in the case of an employee who 09 has furnished documentary proof of the employee's wages, the administrative law 10 judge [IT] shall issue an order adjusting the weekly rate of compensation to a rate 11 equal to the employee's spendable weekly wages. If the employer can verify that the 12 employee's spendable weekly wages are less than 22 percent of the maximum 13 compensation rate, the employer may adjust the weekly rate of compensation to a rate 14 equal to the employee's spendable weekly wages without an order of an 15 administrative law judge [THE BOARD]. If the employee's spendable weekly 16 wages are greater than 22 percent of the maximum compensation rate, but 80 percent 17 of the employee's spendable weekly wages is less than 22 percent of the maximum 18 compensation rate, the employee's weekly rate of compensation shall be 22 percent of 19 the maximum compensation rate. Prior payments made in excess of the adjusted rate 20 shall be deducted from the unpaid compensation in the manner an administrative law 21 judge [THE BOARD] determines. In any case, the employer shall pay timely 22 compensation. In this subsection, "maximum compensation rate" means 120 percent 23 of the average weekly wage, calculated under (d) of this section, applicable on the date 24 of injury of the employee. 25 * Sec. 87. AS 23.30.175(b) is amended to read: 26 (b) The following rules apply to benefits payable to recipients not residing in 27 the state at the time compensation benefits are payable: 28 (1) the weekly rate of compensation shall be calculated by multiplying 29 the recipient's weekly compensation rate calculated under AS 23.30.180, 23.30.185, 30 23.30.190, 23.30.200, or 23.30.215 [,] by the ratio of the cost of living of the area in 31 which the recipient resides to the cost of living in this state;
01 (2) the calculation required by (1) of this subsection does not apply if 02 the recipient is absent from the state for medical or rehabilitation services not 03 reasonably available in the state; 04 (3) if the gross weekly earnings of the recipient and the resulting 05 compensation rate are determined under AS 23.30.220(a)(6), (7), or (10), the 06 calculation required by this subsection applies only to the portion of the recipient's 07 weekly compensation rate attributable to wages earned in the state; 08 (4) application of this subsection may not reduce the weekly 09 compensation rate to less than $154 a week, except as provided in (a) of this section; 10 (5) application of (1) - (4) of this subsection may not result in 11 raising a recipient's weekly compensation rate to an amount that exceeds the 12 weekly compensation rate that the recipient would have received if the recipient 13 had been residing in the state. 14 * Sec. 88. AS 23.30.175(c) is amended to read: 15 (c) The department [BOARD] shall provide by regulation for the 16 determination and comparison of living costs for this state and the other areas in which 17 recipients reside and for the annual redetermination and comparison of these costs. 18 * Sec. 89. AS 23.30.180(a) is amended to read: 19 (a) In the case of total disability adjudged to be permanent, 80 percent of the 20 injured employee's spendable weekly wages shall be paid to the employee during the 21 continuance of the total disability. If a permanent partial disability award has been 22 made before a permanent total disability determination, permanent total disability 23 benefits must be reduced by the amount of the permanent partial disability award, 24 adjusted for inflation, in a manner determined by an administrative law judge [THE 25 BOARD]. Loss of both hands, [OR] both arms, [OR] both feet, [OR] both legs, or 26 both eyes, or of any two of them, in the absence of conclusive proof to the contrary, 27 constitutes permanent total disability. In all other cases, permanent total disability is 28 determined in accordance with the facts. In making this determination the market for 29 the employee's services shall be the 30 (1) area of residence; 31 (2) area of last employment;
01 (3) [THE] state of residence; and 02 (4) [THE] State of Alaska. 03 * Sec. 90. AS 23.30.190(b) is amended to read: 04 (b) All determinations of the existence and degree of permanent impairment 05 shall be made strictly and solely under the whole person determination as set out in the 06 American Medical Association Guides to the Evaluation of Permanent Impairment, 07 except that an impairment rating may not be rounded to the next five percent. The 08 department [BOARD] shall adopt a supplementary recognized schedule for injuries 09 that cannot be rated by use of the American Medical Association Guides. 10 * Sec. 91. AS 23.30.190(d) is amended to read: 11 (d) When a new edition of the American Medical Association Guides 12 described in (b) of this section is published, the director [BOARD] shall, not later 13 than 90 days after the last day of the month in which the new edition is published, hold 14 an open meeting under AS 44.62.310 to select the date on which the new edition will 15 be used to make all determinations required under (b) of this section. The date 16 selected by the director [BOARD] for using the new edition may not be later than 90 17 days after the last day of the month in which the new edition is published. After the 18 meeting, the director [BOARD] shall issue a public notice announcing the date 19 selected. The requirements of AS 44.62.010 - 44.62.300 do not apply to the selection 20 or announcement of the date under this subsection. 21 * Sec. 92. AS 23.30.200(b) is amended to read: 22 (b) The wage-earning capacity of an injured employee is determined by the 23 actual spendable weekly wage of the employee if the actual spendable weekly wage 24 fairly and reasonably represents the wage-earning capacity of the employee. An 25 administrative law judge [THE BOARD] may, in the interest of justice, fix the 26 wage-earning capacity that is reasonable, having due regard for [TO] the nature of the 27 injury, the degree of physical impairment, the usual employment, and other factors or 28 circumstances in the case that may affect the capacity of the employee to earn wages 29 in a disabled condition, including the effect of disability as it may naturally extend into 30 the future. 31 * Sec. 93. AS 23.30.205(e) is amended to read:
01 (e) The second injury fund may not be bound as to any question of law or fact 02 by reason of an award or an adjudication to which it was not a party or in relation to 03 which the director [COMMISSIONER] was not notified at least three weeks before 04 the award or adjudication, that the fund might be subject to liability for the injury or 05 death. 06 * Sec. 94. AS 23.30.205(f) is amended to read: 07 (f) An employer or the employer's carrier shall notify the director 08 [COMMISSIONER OF LABOR AND WORKFORCE DEVELOPMENT] of any 09 possible claim against the second injury fund as soon as practicable, but in no event 10 later than 100 weeks after the employer or the employer's carrier have knowledge of 11 the injury or death. 12 * Sec. 95. AS 23.30.215(d) is amended to read: 13 (d) Compensation under this chapter to aliens not residents, or about to 14 become nonresidents, of the United States or Canada is the same in amount as 15 provided for residents, except that dependents in a foreign country are limited to 16 widow or widower and child or children, or, if there is no widow or widower and child 17 or children, to surviving father or mother whom the employee has supported, either 18 wholly or in part, for a period of one year before the date of injury. An 19 administrative law judge, upon petition of the director, the employer, or [THE 20 BOARD, AT ITS OPTION, OR UPON THE APPLICATION OF] the insurance 21 carrier, may commute all future installments of compensation to be paid to an alien 22 dependent who is not a resident of the United States or Canada by paying or causing to 23 be paid to the alien dependent one-half of the commuted amount of the future 24 installments of compensation as determined by the administrative law judge 25 [BOARD]. 26 * Sec. 96. AS 23.30.220(a) is amended to read: 27 (a) Computation of compensation under this chapter shall be on the basis of an 28 employee's spendable weekly wage at the time of injury. An employee's spendable 29 weekly wage is the employee's gross weekly earnings minus payroll tax deductions. 30 An employee's gross weekly earnings shall be calculated as follows: 31 (1) if, at the time of injury, the employee's earnings are calculated by
01 the week, the weekly amount is the employee's gross weekly earnings; 02 (2) if, at the time of injury, the employee's earnings are calculated by 03 the month, the employee's gross weekly earnings are the monthly earnings multiplied 04 by 12 and divided by 52; 05 (3) if, at the time of injury, the employee's earnings are calculated by 06 the year, the employee's gross weekly earnings are the yearly earnings divided by 52; 07 (4) if, at the time of injury, the 08 (A) employee's earnings are calculated by the day, by the hour, 09 or by the output of the employee, the employee's gross weekly earnings are the 10 employee's earnings most favorable to the employee computed by dividing by 11 13 the employee's earnings, including overtime or premium pay, earned during 12 any period of 13 consecutive calendar weeks within the 52 weeks immediately 13 preceding the injury; 14 (B) employee has been employed for less than 13 calendar 15 weeks immediately preceding the injury, then, notwithstanding (1) - (3) of this 16 subsection and (A) of this paragraph, the employee's gross weekly earnings are 17 computed by determining the amount that the employee would have earned, 18 including overtime or premium pay, had the employee been employed by the 19 employer for 13 calendar weeks immediately preceding the injury and dividing 20 this sum by 13; 21 (5) if, at the time of injury, the employee's earnings have not been 22 fixed or cannot be ascertained, the employee's earnings for the purpose of calculating 23 compensation are the usual wage for similar services when the services are rendered 24 by paid employees; 25 (6) if, at the time of injury, the employment is exclusively seasonal or 26 temporary, then, notwithstanding (1) - (5) of this subsection, the gross weekly earnings 27 are 1/50 of the total wages that the employee has earned from all occupations during 28 the 12 calendar months immediately preceding the injury; 29 (7) when the employee is working under concurrent contracts with two 30 or more employers, the employee's earnings from all employers are [IS] considered as 31 if earned from the employer liable for compensation;
01 (8) if an employee when injured is a minor, an apprentice, or a trainee 02 in a formal training program, as determined by an administrative law judge [THE 03 BOARD], whose wages, under normal conditions, would increase during the period of 04 disability, the projected increase may be considered by the administrative law judge 05 [BOARD] in computing the gross weekly earnings of the employee; 06 (9) if the employee is injured while performing duties as a volunteer 07 ambulance attendant, volunteer police officer, or volunteer fire fighter, then, 08 notwithstanding (1) - (6) of this subsection, the gross weekly earnings for calculating 09 compensation shall be the minimum gross weekly earnings paid a full-time ambulance 10 attendant, police officer, or fire fighter employed in the political subdivision where the 11 injury occurred, or, if the political subdivision has no full-time ambulance attendants, 12 police officers, or fire fighters, at a reasonable figure previously set by the political 13 subdivision to make this determination, but, in no case, may the gross weekly earnings 14 for calculating compensation be less than the minimum wage computed on the basis of 15 40 hours work a [PER] week; 16 (10) if an employee is entitled to compensation under AS 23.30.180 17 and an administrative law judge [THE BOARD] determines that calculation of the 18 employee's gross weekly earnings under (1) - (7) of this subsection does not fairly 19 reflect the employee's earnings during the period of disability, the administrative law 20 judge [BOARD] shall determine gross weekly earnings by considering the nature of 21 the employee's work, work history, and resulting disability, but compensation 22 calculated under this paragraph may not exceed the employee's gross weekly earnings 23 at the time of injury. 24 * Sec. 97. AS 23.30.240 is amended to read: 25 Sec. 23.30.240. Officers of corporations, municipal corporations, and 26 nonprofit corporations as employees. An executive officer elected or appointed and 27 empowered in accordance with the charter and bylaws of a corporation, other than an 28 official of a municipal corporation or a charitable, religious, educational, or other 29 nonprofit corporation, is an employee of the corporation under this chapter. However, 30 an executive officer of a corporation may waive coverage under this chapter, subject 31 to the approval of the director [COMMISSIONER OF LABOR AND WORKFORCE
01 DEVELOPMENT], notwithstanding AS 23.30.245(b). Notwithstanding any other 02 provision of this chapter, an executive officer of a municipal corporation or of a 03 charitable, religious, educational, or other nonprofit corporation may be brought 04 within the coverage of its insurance contract by the corporation by specifically 05 including the officer in the contract of insurance. The election to bring an executive 06 officer within the coverage continues in force for the period the contract of insurance 07 is in effect. During that period, an executive officer brought within the coverage of 08 the insurance contract is an employee of the corporation under this chapter. 09 * Sec. 98. AS 23.30 is amended by adding a new section to read: 10 Sec. 23.30.249. Fraudulent acts and false or misleading statements. (a) An 11 employer or insurer may petition for an order to reimburse a payment and the cost of 12 compensation, medical treatment, or other benefit provided under this chapter 13 obtained by a fraudulent act or false or misleading statement or representation. If an 14 administrative law judge, after a hearing as provided by AS 23.30.110, finds by a 15 preponderance of the evidence that a person has obtained a payment, compensation, 16 medical treatment, or another benefit provided under this chapter by a fraudulent act 17 or by knowingly making a false or misleading statement or representation for the 18 purpose of obtaining that benefit or payment, the administrative law judge shall order 19 that person to make full reimbursement of the payment or cost of all benefits obtained. 20 Upon entry of an order authorized under this subsection, the administrative law judge 21 shall also order that person to pay all reasonable costs and attorney fees incurred by 22 the employer and the employer's carrier in obtaining an order under this section and in 23 defending any claim made for benefits under this chapter. If a person fails to comply 24 with an order requiring reimbursement of payment or cost of benefits, and payment of 25 costs and attorney fees, the employer may declare the person in default and proceed to 26 collect any sum due as provided under AS 23.30.170(b) and (c). 27 (b) Except as provided in (c) of this section, a person is not liable for civil 28 damages for filing a report with or furnishing other information, whether written or 29 oral, concerning a suspected, anticipated, or completed fraudulent act or false or 30 misleading statements or representation to 31 (1) law enforcement officials or their agents and employees;
01 (2) the division of workers' compensation, the division of insurance in 02 the Department of Commerce, Community, and Economic Development, or an agency 03 in another state that regulates insurance or workers' compensation; 04 (3) an insurer or adjuster or its agents, employees, or designees, or the 05 risk manager of a self-insured employer under this chapter. 06 (c) The provisions of (b) of this section do not preclude liability for civil 07 damages as described in (b) of this section if the liability arose as a result of reckless, 08 wilful, or intentional misconduct. 09 (d) An insurer, an adjuster, or a risk manager of a self-insured employer that 10 has reason to believe that a fraudulent workers' compensation demand or claim has 11 been made against it shall send the director a report disclosing information that the 12 director may require. An insurer or an adjuster or its employee or agent, or a risk 13 manager of a self-employed employer, or another person acting in good faith is not 14 civilly liable for damages resulting from the filing of the report or the furnishing of 15 information required by this section or by the director. 16 (e) The director may investigate facts reported under this section and may 17 refer facts indicating a possible violation of law to the appropriate prosecutor or 18 agency. If the director determines that there is credible evidence that a person 19 obtained a payment, compensation, medical treatment, or other benefit provided under 20 this chapter by a fraudulent act or false or misleading statement or representation as 21 provided in (a) of this section, the director shall notify the affected employer, insurer, 22 and adjuster upon conclusion of the investigation. If the fraudulent act or false or 23 misleading statement or representation was perpetrated against the division, the 24 director may file a petition as provided in AS 23.30.110 for an order of forfeiture 25 against the person, precluding, in whole or in part, the person from future payment, 26 compensation, medical treatment, or other benefit provided under this chapter. 27 (f) The papers, reports, documents, and evidence received under this section or 28 in an investigation arising from information received under this section are not subject 29 to public inspection for so long as the director considers confidentiality to be in the 30 public interest or reasonably necessary to complete an investigation or protect the 31 person investigated from unwarranted injury. Papers, reports, documents, and
01 evidence relative to an investigation under this section are confidential and not subject 02 to subpoena unless, after notice to the director and a hearing, a court determines that 03 the director would not be unduly hindered by public inspection. 04 (g) If the material that the director seeks to obtain is located outside the state, 05 the material may be made available to the director to examine at the place where the 06 material is located. The director may designate representatives, including officials of 07 the state in which the material is located, to inspect the material on behalf of the 08 director. The director may respond to a request from an official of another state for 09 similar material. 10 (h) In this section, "fraudulent act" includes 11 (1) to knowingly pretend injury or disability, with intent to defraud or 12 obtain a benefit under this chapter; 13 (2) to knowingly conceal, suppress, destroy, remove, or alter records, 14 with intent to defraud or obtain a benefit under this chapter; 15 (3) to knowingly assist or prepare another person to submit a false or 16 misleading statement in support of a claim for benefits under this chapter with reckless 17 disregard that the person is not entitled to benefits under this chapter; 18 (4) to use force against a person, damage the property of a person, or 19 threaten a person with intent to improperly influence the opinion of a witness, a 20 physician, or other health care provider; 21 (5) except as otherwise authorized under this chapter, to knowingly 22 confer, offer to confer, solicit, agree to accept, or accept property, services, or a 23 benefit 24 (A) to refer an employee to a physician or other health care 25 provider; or 26 (B) for providing medical treatment, services, medicines, or 27 supplies to an employee if the property, services, or benefit is in addition to 28 payment by the employer, insurer, or adjuster allowed under this chapter. 29 * Sec. 99. AS 23.30.250 is repealed and reenacted to read: 30 Sec. 23.30.250. Penalty for fraudulent acts or false or misleading 31 statements or representations. (a) A person is guilty of theft by deception as defined
01 in AS 11.46.180, and may be punished as provided by AS 11.46.120 - 11.46.150, and 02 is civilly liable to a person adversely affected by the conduct, if the person 03 (1) knowingly makes a false or misleading statement, representation, 04 or submission related to an injury, compensation, or benefit under this chapter; 05 (2) knowingly assists, abets, solicits, or conspires in making a false or 06 misleading submission affecting the payment, coverage, or other benefit under this 07 chapter; 08 (3) knowingly misclassifies employees or engages in deceptive leasing 09 practices for the purpose of evading full payment of workers' compensation insurance 10 premiums; or 11 (4) employs or contracts with a natural person or business organization 12 to coerce or encourage an individual to file a fraudulent compensation claim. 13 (b) In this section, 14 (1) "benefit" means a payment, compensation, medical treatment, 15 service, product, entitlement, or right available under this chapter; 16 (2) "knowingly" has the meaning given in AS 11.81.900. 17 * Sec. 100. AS 23.30.260 is amended to read: 18 Sec. 23.30.260. Penalty for receiving unapproved fees and soliciting. A 19 person is guilty of a misdemeanor [,] and, upon conviction, is punishable for each 20 offense by a fine of not more than $1,000 [,] or by imprisonment for not more than one 21 year, or by both, if the person 22 (1) receives a fee, other consideration, or a gratuity on account of any 23 services rendered for representation or advice with [IN] respect to a claim, unless 24 the consideration or gratuity is approved by the administrative law judge, the 25 commission, [BOARD] or the court; or 26 (2) makes it a business to solicit employment for a lawyer or for the 27 person with [ONESELF IN] respect to a claim or award for compensation. 28 * Sec. 101. AS 23.30.260 is amended by adding a new subsection to read: 29 (b) Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is 30 not required if the fee does not exceed $300 and is a one-time-only charge to an 31 employee by an attorney licensed in this state who performed legal services with
01 respect to the employee's claim but did not enter an appearance. 02 * Sec. 102. AS 23.30.395(28) is amended to read: 03 (28) "self-insurer" means an employer who, instead of insuring 04 liability under this chapter as it provides, elects to pay directly the compensation 05 provided for, and who has furnished to the division [BOARD] satisfactory proof of 06 the employer's financial ability to make the direct payments; 07 * Sec. 103. AS 23.30.395 is amended by adding new paragraphs to read: 08 (35) "administrative law judge " means an administrative law judge 09 employed or retained by the office of administrative hearings (AS 44.64.010) who 10 meets the qualifications under AS 23.30.112 to conduct hearings of workers' 11 compensation claims and petitions and conduct other hearings and proceedings under 12 this chapter; 13 (36) "commission" means the Workers' Compensation Appeals 14 Commission; 15 (37) "director" means the director of the division of workers' 16 compensation; 17 (38) "division" means the division of workers' compensation. 18 * Sec. 104. AS 39.25.110 is amended by adding a new paragraph to read: 19 (40) the chair of the Workers' Compensation Appeals Commission 20 (AS 23.30.007). 21 * Sec. 105. AS 39.25.120(c)(14) is amended to read: 22 (14) the rehabilitation administrator of the division of workers' 23 compensation [WORKERS' COMPENSATION BOARD]; 24 * Sec. 106. AS 39.50.200(b)(31) is amended to read: 25 (31) Workers' Compensation Appeals Commission (AS 23.30.007) 26 [BOARD (AS 23.30.005)]; 27 * Sec. 107. AS 44.62.330(a)(15) is amended to read: 28 (15) division of workers' compensation and its director [ALASKA 29 WORKERS' COMPENSATION BOARD], where procedures are not otherwise 30 expressly provided by AS 23.30 ([THE] Alaska Workers' Compensation Act); 31 * Sec. 108. AS 44.64.020(a), as enacted by sec. 2, HCS CSSB 203(FIN), is amended to
01 read: 02 (a) The chief administrative law judge shall 03 (1) supervise the office; 04 (2) employ administrative staff, who shall be in the classified service; 05 (3) employ administrative law judges, who shall be in the partially 06 exempt service; 07 (4) preside over administrative hearings handled by the office or, based 08 upon the qualifications and expertise of the administrative law judges, assign 09 administrative law judges to preside over hearings, and protect, support, and enhance 10 the decisional independence of the administrative law judges; 11 (5) establish and implement performance standards, including 12 provision for timeliness, and peer review programs for administrative law judges 13 employed or retained by the office; 14 (6) make available and facilitate training and continuing education 15 programs and services in administrative procedure, administrative adjudication, 16 substantive law, alternate dispute resolution, and technical matters for administrative 17 law judges and other administrative adjudicators; 18 (7) survey administrative hearing participants and use other methods to 19 monitor the quality of administrative hearings held by the office and other state 20 agencies, and submit to the governor and the legislature on January 31 of each year the 21 results of the survey along with a report that includes a description of the activities of 22 the office and recommendations for statutory changes that may be needed in relation 23 to the administrative hearings held by the office or other state agencies; 24 (8) review and comment on regulations proposed by state agencies to 25 govern procedures in administrative hearings; 26 (9) enter into contracts as necessary to carry out the functions of the 27 office; 28 (10) annually prepare and submit to the commissioner of 29 administration a budget for the office for the next fiscal year that shall include and 30 separately identify funding for training and continuing education; a copy of the budget 31 submitted to the commissioner under this paragraph shall also be submitted to the
01 Finance Committee of each house of the legislature; and 02 (11) after consulting with affected agencies, adopt regulations under 03 AS 44.62 (Administrative Procedure Act) to carry out the duties of the office and 04 implement this chapter, except for regulations governing the conduct of workers' 05 compensation hearings and proceedings under AS 23.30, which are under the 06 exclusive jurisdiction of the Workers' Compensation Appeals Commission 07 (AS 23.30.007). 08 * Sec. 109. AS 44.64.030(a), as enacted by sec. 3, HCS CSSB 203(FIN), is amended by 09 adding a new paragraph to read: 10 (36) AS 23.30 (workers' compensation). 11 * Sec. 110. AS 44.64.040(a), as enacted by sec. 3, HCS CSSB 203(FIN), is amended to 12 read: 13 (a) An administrative law judge must be admitted to practice law in this state 14 and must have been admitted to practice in this state for at least two years before being 15 employed or retained with the office. The chief administrative law judge shall 16 establish additional qualifications for administrative law judges employed or retained 17 by the office and for those administrative law judges that may be assigned to particular 18 types of cases. An administrative law judge is in the partially exempt service. 19 Notwithstanding AS 39.25.120(b), full-time administrative law judges employed by 20 the office are subject to the personnel rules adopted under AS 39.25.150(7), (15), and 21 (16). An administrative law judge assigned to workers' compensation hearings or 22 other proceedings under AS 23.30 shall be compensated at Range 24 of the salary 23 schedule set out in AS 39.27.011(a) for Anchorage, Alaska. 24 * Sec. 111. AS 21.39.155(c) is repealed. 25 * Sec. 112. AS 23.30.395(3) is repealed. 26 * Sec. 113. The uncodified law of the State of Alaska is amended by adding a new section 27 to read: 28 APPLICABILITY. The amendment to AS 23.30.175(b) made by sec. 87 of this Act 29 applies to an injury occurring on or after the effective date of sec. 87 of this Act. 30 * Sec. 114. The uncodified law of the State of Alaska is amended by adding a new section 31 to read:
01 TRANSITION: TERMS OF BOARD OF GOVERNORS MEMBERS. (a) 02 Notwithstanding sec. 7 of this Act, the director of insurance in the Department of Commerce, 03 Community, and Economic Development shall designate members of the board of governors 04 for the Alaska Insurance Guaranty Association to serve staggered initial terms in the manner 05 provided in AS 39.05.055. 06 (b) Terms of members of the board of governors for the Alaska Insurance Guaranty 07 Association serving on September 1, 2004, expire on September 2, 2004, but a member of the 08 board of governors on September 1, 2004, may continue to serve until a successor is 09 appointed if the member meets the standards set out in sec. 7 of this Act for the position in 10 which the member was serving on September 1, 2004. Members of the board of governors 11 for the Alaska Insurance Guaranty Association serving on September 1, 2004, may apply for 12 reappointment to the board by submitting a request to the director of insurance. 13 * Sec. 115. The uncodified law of the State of Alaska is amended by adding a new section 14 to read: 15 TRANSITION: CONTINUANCE OF ALASKA WORKERS' COMPENSATION 16 BOARD; PENDING CASES. (a) Notwithstanding the repeal and reenactment of 17 AS 23.30.005 by sec. 11 of this Act, the Alaska Workers' Compensation Board, established 18 under AS 23.30.005 as it existed on the day before the effective date of sec. 11 of this Act, 19 continues in existence for 45 days after the effective date of sec. 11 of this Act for the limited 20 purpose described in (b) of this section. Members serving on the Alaska Workers' 21 Compensation Board on the day before the effective date of sec. 11 of this Act continue to 22 serve as members of that board for the 45 days after the effective date of sec. 11 of this Act. 23 Appointments may not be made to that board on or after the effective date of sec. 11 of this 24 Act. 25 (b) A case heard by the board before the effective date of sec. 11 of this Act and 26 awaiting a decision by the board on the day before the effective date of sec. 11 of this Act 27 shall be decided by the board, and a decision or order shall be issued, not later than the 45th 28 day after the effective date of sec. 11 of this Act, under the applicable statutes and regulations 29 in effect on the day before the effective date of sec. 11 of this Act. 30 (c) In this section, "board" means the Alaska Workers' Compensation Board 31 established under AS 23.30.005 as that section existed on the day before the effective date of
01 sec. 11 of this Act. 02 * Sec. 116. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 TRANSITION: INITIAL TERMS OF MEMBERS OF WORKERS' 05 COMPENSATION APPEALS COMMISSION. (a) Notwithstanding AS 23.30.007(e), 06 enacted by sec. 12 of this Act, the terms of the initially appointed representative members of 07 the Workers' Compensation Appeals Commission, established by AS 23.30.007 enacted by 08 sec. 12 of this Act, shall be set by the governor to achieve staggered terms in the manner 09 provided in AS 39.05.055. 10 * Sec. 117. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 TRANSITION: STAFF. (a) In order to ensure the smooth transfer of functions in the 13 shortest possible time, for a period of six months after the effective date of this section, the 14 director may, with the approval of the commissioner of labor and workforce development and 15 the chair of the commission, temporarily assign division employees to the commission and the 16 commission may reimburse the division for the temporarily assigned employees. Division 17 employees temporarily assigned to the commission shall continue in the same position and 18 rate of pay for the duration of the temporary assignment as the employees held at the division. 19 (c) In this section, 20 (1) "commission" means the Workers' Compensation Appeals Commission 21 established by AS 23.30.007, enacted by sec. 12 of this Act; 22 (2) "director" means the director of the division of workers' compensation in 23 the Department of Labor and Workforce Development; 24 (3) "division" means the division of workers' compensation in the Department 25 of Labor and Workforce Development. 26 * Sec. 118. The uncodified law of the State of Alaska is amended by adding a new section 27 to read: 28 TRANSITIONAL PROVISIONS. (a) Litigation, investigations, and other 29 proceedings pending under a law amended or repealed by this Act, or in connection with 30 functions transferred by this Act, continue in effect and may be continued and completed, 31 notwithstanding a transfer or amendment or repeal provided for in this Act.
01 (b) Certificates, decisions, and orders issued under authority of a law amended or 02 repealed by this Act remain in effect for the term issued, or until revoked, vacated, or 03 otherwise modified under the provisions of this Act. Contracts, rights, liabilities, and 04 obligations created by or under a law amended or repealed by this Act, and in effect on the 05 day before the effective date of this section, remain in effect notwithstanding this Act's taking 06 effect. Records, equipment, appropriations, and other property of agencies of the state whose 07 functions are transferred under this Act shall be transferred to implement the provisions of 08 this Act. 09 (c) Regulations adopted under AS 23.30 and in effect on the day before the effective 10 date of this section continue in effect, and may be applied by the Alaska Workers' 11 Compensation Board, during the 45 days after the effective date of sec. 11 of this Act. 12 * Sec. 119. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 TRANSITION: REGULATIONS. (a) The Department of Labor and Workforce 15 Development and the director of insurance in the Department of Commerce, Community, and 16 Economic Development each may proceed to adopt regulations necessary to implement their 17 respective provisions of this Act. The regulations take effect under AS 44.62 (Administrative 18 Procedure Act), but not before the effective date of the statutory changes. 19 (b) In order to provide for the procedures and other administrative matters necessary 20 to ensure the on-going implementation of the state's workers' compensation laws to meet the 21 urgent needs of injured workers, and thus ensure the preservation of the public peace, health, 22 safety, or general welfare, the Workers' Compensation Appeals Commission established by 23 AS 23.30.007, enacted by sec. 12 of this Act, may adopt under AS 23.30.008, enacted by 24 sec. 12 of this Act, as emergency regulations, the regulations necessary to implement the 25 changes made by this Act. 26 * Sec. 120. The uncodified law of the State of Alaska is amended by adding a new section 27 to read: 28 CONDITIONAL EFFECT. Sections 2, 8 - 86, 88 - 110, 112, 115 - 118, and 119(b) of 29 this Act take effect only if HCS CSSB 203(FIN), passed by the Twenty-Third Alaska State 30 Legislature, is enacted into law. 31 * Sec. 121. Section 119(a) of this Act takes effect immediately under AS 01.10.070(c).
01 * Sec. 122. Sections 1, 3 - 7, 87, 111, 113, and 114 of this Act take effect September 1, 02 2004. 03 * Sec. 123. If they take effect under sec. 120 of this Act, secs. 2, 8 - 86, 88 - 110, 112, 115 - 04 118, and 119(b) of this Act take effect July 1, 2005.