CSSB 311(JUD): "An Act providing for a special deposit for 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 Workers' Compensation Hearings Board; relating to agreements that discharge workers' compensation liability; providing for hearing examiners and hearing panels 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 assigned risk pools and insurers; and providing for an effective date."
00 CS FOR SENATE BILL NO. 311(JUD) 01 "An Act providing for a special deposit for workers' compensation insurers; relating to 02 the board of governors of the Alaska Insurance Guaranty Association; stating the intent 03 of the legislature, and setting out limitations, concerning the interpretation, 04 construction, and implementation of workers' compensation laws; relating to 05 restructuring the Alaska workers' compensation system; eliminating the Alaska 06 Workers' Compensation Board; establishing a division of workers' compensation within 07 the Department of Labor and Workforce Development and assigning certain Alaska 08 Workers' Compensation Board functions to the division and the Department of Labor 09 and Workforce Development; establishing a Workers' Compensation Appeals 10 Commission; assigning certain functions of the Alaska Workers' Compensation Board 11 to the Workers' Compensation Appeals Commission and the Workers' Compensation 12 Hearings Board; relating to agreements that discharge workers' compensation liability;
01 providing for hearing examiners and hearing panels in workers' compensation 02 proceedings; relating to workers' compensation awards; relating to an employer's 03 failure to insure and keep insured or provide security; providing for appeals from 04 compensation orders; relating to workers' compensation proceedings; providing for 05 supreme court jurisdiction of appeals from the Workers' Compensation Appeals 06 Commission; providing for a maximum amount for the cost-of-living adjustment for 07 workers' compensation benefits; providing for administrative penalties for employers 08 uninsured or without adequate security for workers' compensation; relating to assigned 09 risk pools and insurers; and providing for an effective date." 10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 11 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 12 to read: 13 LEGISLATIVE INTENT. It is the intent of the legislature by secs. 3 - 6 of this Act 14 (1) to reform the workers' compensation system in Alaska to ensure the 15 continued payment of benefits in the event of an insurer insolvency; 16 (2) to give parties affected by the insolvency of a workers' compensation 17 insurer a voice on the board of governors of the Alaska Insurance Guaranty Association; and 18 (3) to reduce the overall costs of workers' compensation premiums to 19 employers. 20 * Sec. 2. AS 08.18.101(1) is amended to read: 21 (1) to the extent required under AS 23.30, workers' compensation 22 insurance that is purchased from a private insurer who is admitted to do business in the 23 state and that shows coverage in this state, appropriate employee classifications, and 24 rates applicable in this state, or a valid workers' compensation self-insurance 25 certificate issued by the director of the division of workers' compensation 26 [ALASKA WORKERS' COMPENSATION BOARD]; and 27 * Sec. 3. AS 21.09.090 is amended by adding a new subsection to read: 28 (e) In addition to any other deposit required under this section, an insurer who
01 transacts workers' compensation insurance in this state shall maintain in the state a 02 special deposit of cash or securities eligible for deposit under AS 21.24.030 in an 03 amount not less than the basic capital or surplus required of an insurer under 04 AS 21.09.070 for the protection of persons in this state covered under workers' 05 compensation insurance. The insurer shall maintain the deposit under this subsection 06 in this state as long as there is any outstanding liability of the insurer for workers' 07 compensation in this state. If the insurer is unable to pay workers' compensation 08 claims due under AS 23.30 because the insurer is an insolvent insurer, upon the 09 director's request, the deposit is immediately available to the Alaska Insurance 10 Guaranty Association (AS 21.80) for continuation of claims benefits to eligible 11 workers. In this subsection, "insolvent insurer" has the meaning given in 12 AS 21.80.180. 13 * Sec. 4. AS 21.24.130(d) is amended to read: 14 (d) Except as provided in AS 21.09.090(e), if [IF] the insurer is subject to 15 delinquency proceedings as defined in AS 21.78, upon the order of a court of 16 competent jurisdiction, the director shall yield the assets and securities held on deposit 17 to the receiver, conservator, rehabilitator, or liquidator of the insurer, or to any other 18 properly designated official or officials who succeed to the management and control of 19 the insurer's assets. 20 * Sec. 5. AS 21.80.050 is repealed and reenacted to read: 21 Sec. 21.80.050. Board of governors. (a) The board of governors of the 22 association consists of nine members appointed by the director. Terms are established 23 in the plan of operation of the association. Membership of the board of governors 24 consists of 25 (1) four members who represent member insurers; 26 (2) two members who represent employers; 27 (3) two members who represent labor; 28 (4) one member who represents licensees. 29 (b) Members appointed shall serve staggered three-year terms and may be 30 removed for cause by the director. 31 (c) Within 90 days after a vacancy occurs on the board, the director shall fill
01 the vacancy for the remaining period of the term of the vacating member. 02 (d) In appointing a member insurer to the board, the director shall consider, 03 among other things, whether all member insurers are fairly represented. 04 (e) Members of the board may be reimbursed from the assets of the 05 association for expenses incurred by them as members of the board of governors. 06 * Sec. 6. AS 23.05.067(a) is amended to read: 07 (a) Each insurer providing workers' compensation insurance and each 08 employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall 09 pay an annual service fee to the department for the administrative expenses of the state 10 for workers' safety programs under AS 18.60 and the workers' compensation program 11 under AS 23.30 as follows: 12 (1) for each employer, 13 (A) except as provided in (b) of this section, the service fee 14 shall be paid each year to the department at the time that the annual report is 15 required to be filed under AS 23.30.155(m) or (n); and 16 (B) the service fee is 2.9 percent of all payments reported to the 17 director of the divisions of workers' compensation [ALASKA WORKERS' 18 COMPENSATION BOARD] under AS 23.30.155(m) or (n), except second 19 injury fund payments; and 20 (2) for each insurer, the director of the division of insurance shall, 21 under (e) of this section, deposit from funds received from the insurer under 22 AS 21.09.210 a service fee of 1.82 percent of the direct premium income for workers' 23 compensation insurance received by the insurer during the year ending on the 24 preceding December 31, subject to all the deductions specified in AS 21.09.210(b). 25 * Sec. 7. AS 23.05.067(e) is amended to read: 26 (e) Annual service fees and civil penalties collected under this section and 27 fees collected by the Workers' Compensation Appeals Commission shall be 28 deposited in the workers' safety and compensation administration account in the state 29 treasury. Under AS 37.05.146(c), the Workers' Compensation Appeals 30 Commission fees, service fees, and civil penalties shall be accounted for separately, 31 and appropriations from the account are not made from the unrestricted general fund.
01 The legislature may appropriate money from the account for expenditures by the 02 department for necessary costs incurred by the department in the administration of the 03 workers' safety programs contained in AS 18.60 and of the Alaska Workers' 04 Compensation Act contained in AS 23.30. The legislature may appropriate money 05 from the account for expenditures by the department for necessary costs 06 incurred by the Workers' Compensation Appeals Commission and for the 07 administration of adjudication of claims and petitions arising under AS 23.30. 08 Nothing in this subsection creates a dedicated fund or dedicates the money in the 09 account for a specific purpose. Money deposited in the account does not lapse at the 10 end of a fiscal year unless otherwise provided by an appropriation. 11 * Sec. 8. AS 23.30 is amended by adding a new section to read: 12 Sec. 23.30.001. Intent of the legislature and construction of chapter. It is 13 the intent of the legislature that 14 (1) this chapter be interpreted so as to ensure the quick, efficient, fair, 15 and predictable delivery of indemnity and medical benefits to injured workers at a 16 reasonable cost to the employers who are subject to the provisions of this chapter; 17 (2) workers' compensation cases shall be decided on their merits 18 except where otherwise provided by law; 19 (3) this chapter may not be construed by the courts in favor of a party; 20 (4) hearings in workers' compensation cases shall be impartial and fair 21 to all parties and that all parties shall be afforded due process and an opportunity to be 22 heard and for their arguments and evidence to be fairly considered; 23 (5) evidence shall be carefully and rationally examined and, except in 24 the application of the presumption in AS 23.30.120(a), doubt as to the substance of 25 evidence may not be interpreted in favor of one party or the other. 26 * Sec. 9. AS 23.30.005 is repealed and reenacted to read: 27 Sec. 23.30.005. Alaska workers' compensation division; duties of 28 department; regulations; notice of revocation of self-insurance. (a) There is 29 established in the Department of Labor and Workforce Development a division of 30 workers' compensation. The commissioner shall appoint the director of the division. 31 The director shall have at least three years' experience in the field of workers'
01 compensation. 02 (b) The director is responsible to the commissioner for the execution of the 03 duties and responsibilities imposed by this chapter and the regulations adopted under 04 this chapter. The director shall 05 (1) direct and supervise the administrative, technical, investigative, and 06 enforcement activities of the division of workers' compensation; 07 (2) develop, in cooperation with others, programs for the improvement 08 of the workers' compensation system; 09 (3) prepare regulations, consistent with the responsibilities of the 10 division under this chapter, that are required to implement and administer this chapter 11 for adoption by the department; 12 (4) notify employees, employers, physicians, and rehabilitation 13 specialists of their rights and obligations under this chapter; 14 (5) perform other lawful acts necessary to carry out the purposes of 15 this chapter. 16 (c) The department shall adopt rules for the periodic selection, retention, and 17 removal of rehabilitation specialists and physicians under AS 23.30.041 and 18 23.30.095. 19 (d) The department may adopt regulations concerning the medical care 20 provided for in this chapter and, except as committed to the authority of the Workers' 21 Compensation Appeals Commission, may adopt regulations to carry out the provisions 22 of this chapter. 23 (e) The director shall notify the contracting agency of the state or of a political 24 subdivision of the state when it revokes the self-insurance certificate of an employer 25 holding a contract with the state or a political subdivision of the state. 26 * Sec. 10. AS 23.30 is amended by adding new sections to read: 27 Sec. 23.30.006. Workers' Compensation Hearings Board. (a) There is 28 established in the Department of Labor and Workforce Development a Workers' 29 Compensation Hearings Board. The board consists of 14 members. Seven members 30 shall be representative of labor and seven members shall be representative of industry. 31 Two members shall sit for the second and fourth judicial districts; two members shall
01 sit for the first judicial district; and 10 members shall sit for the third judicial district. 02 A member may serve in another judicial district when necessary. 03 (b) Members of the board shall be appointed by the governor. Members shall 04 be citizens of the United States and a resident of this state for three years preceding 05 appointment. Members shall be appointed for a term of three years. The term of a 06 member sitting for a two-member judicial district may not expire in the same year as 07 the other member of the same judicial district. A vacancy arising in the board shall be 08 filled by appointment of the governor. Except as provided in AS 39.05.080(4), an 09 appointee selected to fill a vacancy shall hold office for the unexpired term of the 10 member whose vacancy is filled. 11 (c) Members are entitled to compensation in the amount of $50 a day for each 12 day or portion of a day spent in actual hearing or on authorized official business 13 incidental to their duties and to transportation and per diem as provided by law. 14 (d) The chair of the commission shall serve as the administrative and 15 executive officer of the board and shall have authority in all administrative matters 16 relating to the members, including the assignment and distribution of cases and 17 assignment of members to hearing panels. 18 (e) A member of the board may be removed from office by the governor for 19 good cause. A member of the board, to be removed for cause, shall be given a copy of 20 the charges and afforded an opportunity to be heard in person or by counsel in the 21 member's own defense upon not less than 10 days' notice. If the member is removed 22 for cause, the governor shall file with the lieutenant governor a complete statement of 23 all charges made against the member, the governor's findings on the charges, and the 24 record of any proceedings. In this subsection, "good cause" includes 25 (1) misconduct in office or violation of AS 39.52; 26 (2) conviction of a felony; 27 (3) conviction of a misdemeanor related to workers' compensation; 28 (4) inability to serve, neglect of duty, incompetence, or unavailability 29 to perform the duties of the member's office. 30 (f) A member of the board may not hear a claim or petition under this chapter 31 if
01 (1) a party is an employee or was, in the past seven years, an employee 02 of the board member or of a business that employs the board member; 03 (2) a party is a member or was, in the past seven years, a member of 04 the same union or employee association as the board member; 05 (3) a party has a contractual relationship with the board member, a 06 business that employs the board member, or a union or employee association of which 07 the board member is a member; 08 (4) the member is unable to be fair, impartial, and unbiased toward the 09 hearing participants; or 10 (5) participation in the hearing is a violation of AS 39.52. 11 (g) For purposes of holding hearings under this chapter, the members of the 12 board shall sit in panels of three members. Each panel must include a board member 13 representative of labor, a board member representative of industry, and a hearing 14 examiner employed under AS 23.30.112. A hearing may not proceed in the absence 15 of a board member. 16 Sec. 23.30.007. Workers' Compensation Appeals Commission. (a) There 17 is established in the Department of Labor and Workforce Development a Workers' 18 Compensation Appeals Commission. The commission has jurisdiction to hear appeals 19 from decisions and orders of hearing examiners, hearing panels, and the director. 20 Jurisdiction of the office is limited to administrative appeals arising under this chapter. 21 (b) The commission consists of three members appointed by the governor and 22 confirmed by a majority of the members of the legislature in joint session. Members 23 shall be appointed for a term of five years. At least one member shall be an individual 24 who, because of the individual's previous employment, practice, or affiliations, may be 25 classified as a representative of employers and at least one shall be an individual who, 26 because of the individual's previous employment, practice, or affiliations, may be 27 classified as a representative of employees. A member may act and receive 28 compensation from the date of appointment until confirmation or rejection by the 29 legislature. 30 (c) A member of the commission shall, at the time of appointment, 31 (1) be a citizen of the United States, a resident of this state for five
01 years preceding appointment, licensed to practice law in this state, and a member in 02 good standing of the Alaska Bar Association; and 03 (2) have been in the active practice of law for least five years with 04 experience of workers' compensation law in this state. 05 (d) The governor shall appoint one member of the commission to serve as 06 chair of the commission. The chair of the commission shall serve a term of three years 07 or the remainder of the chair's term as a member of the commission if less than three 08 years remains of the unexpired term as a member, unless the chair is appointed to a 09 successive term as a member of the commission before the expiration of the chair's 10 term as a member of the commission. A member of the commission may not be 11 appointed for successive terms as chair of the commission. 12 (e) A vacancy arising in the commission shall be filled by appointment of the 13 governor and confirmed by a majority of the members of the legislature in joint 14 session. Except as provided in AS 39.05.080(4), an appointee selected to fill a 15 vacancy shall hold office for the unexpired term of the member whose vacancy is 16 filled. A vacancy in the commission does not impair the authority of a quorum of 17 members to exercise all the powers and perform all the duties of the commission. A 18 majority of the members of the commission constitutes a quorum. 19 (f) A member of the commission may be removed from office by the governor 20 for good cause. A member of the commission, to be removed for cause, shall be given 21 a copy of the charges and afforded an opportunity to be heard in person or by counsel 22 in the member's own defense upon not less than 10 days' notice. If the member is 23 removed for cause, the governor shall file with the lieutenant governor a complete 24 statement of all charges made against the member, the governor's findings on the 25 charges, and the record of any proceedings. In this subsection, "good cause" includes 26 (1) misconduct in office or violation of AS 39.52; 27 (2) conviction of a felony; 28 (3) conviction of a misdemeanor related to workers' compensation; 29 (4) inability to serve, neglect of duty, incompetence, unjustified failure 30 to handle the caseload assigned, or similar nonfeasance of office; and 31 (5) failure to meet the requirements of this section relating to
01 qualification for office. 02 (g) The monthly base salary for a member of the commission shall be equal to 03 Step C, Range 29, of the salary schedule in AS 39.27.011(a) for Juneau, Alaska. The 04 chair of the commission shall receive a monthly salary equal to Step F, Range 30 of 05 the salary schedule in AS 39.27.011(a) for Juneau, Alaska. Members of the 06 commission are in the exempt service under AS 39.25.110. 07 (h) Each member of the commission, before entering upon the duties of office, 08 shall take and subscribe to the oath prescribed for principal officers of the state. 09 (i) The office and staff of the commission shall be physically separate from 10 office and staff of the division. 11 Sec. 23.30.008. Powers and duties of the commission. (a) The commission 12 shall be the exclusive and final authority for the hearing and determination of all 13 questions of law and fact arising under this chapter in those matters that have been 14 appealed to the commission, except for an appeal to the Alaska Supreme Court. The 15 commission may not have jurisdiction in any case that does not arise under this 16 chapter or in any criminal case. On any matter taken to the commission, the decision 17 of the commission is final and conclusive, unless appealed to the Alaska Supreme 18 Court, and shall stand in lieu of the order of the director or the hearing panel from 19 which the appeal was taken. Unless reversed by the Alaska Supreme Court, decisions 20 of the commission shall have the force of legal precedent. 21 (b) The commission, in its administrative capacity, shall maintain, index, and 22 make available for public inspection the final administrative decisions and orders of 23 the commission and of hearing examiners and hearing panels. To promote consistency 24 among legal determinations, the chair of the commission may review and circulate 25 among the other members of the commission the drafts of the commission's formal 26 decisions and decisions upon reconsideration, and other legal opinions of the other 27 members of the commission. The drafts are confidential documents and are not 28 subject to disclosure. 29 (c) The commission, in its administrative capacity, may adopt regulations 30 implementing its authority and duties under this chapter, including rules of procedure 31 and evidence for proceedings before the commission and before hearing panels, and
01 hearing examiners and in workers' compensation proceedings under AS 23.30.090 and 02 23.30.110, and for the adjudication of all claims and petitions and appeals under this 03 chapter. The provisions of AS 44.62 (Administrative Procedure Act) apply to the 04 adoption of regulations by the commission. 05 (d) The commission shall award a successful party reasonable costs and, if the 06 party is represented by an attorney, attorney fees that the commission determines to be 07 fully compensatory and reasonable. However, the commission may not make an 08 award of attorney fees against an injured worker unless the commission finds that the 09 worker's position on appeal was frivolous or unreasonable or the appeal was taken in 10 bad faith. 11 (e) The commission, in its administrative capacity, may adopt and alter an 12 official seal and do all things necessary, convenient, or desirable to carry out the 13 powers expressly granted or necessarily implied in this chapter. 14 Sec. 23.30.009. Powers and duties of the chair of the commission. (a) The 15 chair of the commission shall exercise general supervision of the office of the 16 commission, appeals, and workers' compensation hearings and direct the 17 administrative functions of the commission. The chair may 18 (1) employ and supervise commission staff and hearing examiners and 19 appoint a commission clerk; 20 (2) establish and implement a time management system for the 21 commission, staff, and hearing examiners and manage the calendar of hearings and 22 appeals; 23 (3) assign the work of the commission members, hearing examiners 24 and staff so that hearings and appeals are resolved as expeditiously and competently as 25 possible, including designating hearing examiners to hear preliminary matters; and 26 (4) prepare an annual budget of the commission. 27 (b) The chair of the commission shall, not later than March 15 of each year, 28 make available to the public and file with the lieutenant governor, a report regarding 29 the commission, including data regarding time periods between initial receipt and final 30 decisions on appeals. 31 * Sec. 11. AS 23.30.011(c) is amended to read:
01 (c) If an employee is entitled to the benefits of this chapter by reason of an 02 injury sustained in this state in employment by an employer who is domiciled in 03 another state and who has not secured the payment of compensation as required by 04 this chapter, the employer or the employer's carrier may file with the division 05 [BOARD] a certificate, issued by the commission or agency of the other state having 06 jurisdiction over workers' compensation claims, certifying that the employer has 07 secured the payment of compensation under the workers' compensation law of the 08 other state and that, with respect to that injury, the employee is entitled to the benefits 09 provided under that law. In that event, 10 (1) the filing of the certificate shall constitute an appointment by the 11 employer or the employer's carrier of the director [BOARD] as the employer's agent 12 for acceptance of the service of process in a proceeding brought by the employee or 13 the employee's dependents to enforce the employee's or their rights under this chapter 14 on account of the injury; 15 (2) the director [BOARD] shall send to the employer or carrier, by 16 registered or certified mail to the address shown on the certificate, a true copy of any 17 notice of claim or other process served on the director by the employee or the 18 employee's dependents in any proceeding brought to enforce the employee's or their 19 rights under this chapter; 20 (3) if the employer is a qualified self-insurer under the workers' 21 compensation law of the other state, the employer, upon submission of evidence 22 satisfactory to the director [BOARD] of the employer's ability to meet the employer's 23 liability to the employee under this chapter, shall be considered to be a qualified self- 24 insurer under this chapter; 25 (4) if the employer's liability under the workers' compensation law of 26 another state is insured, the employer's carrier, as to the employee or the employee's 27 dependents only, shall be considered to be an insurer authorized to write insurance 28 under and be subject to this chapter; however, unless its contract with the employer 29 requires it to pay an amount equivalent to the compensation benefits provided by this 30 chapter, its liability for income benefits or medical and related benefits may not 31 exceed the amounts of the benefits for which the insurer would have been liable under
01 the workers' compensation law of the other state; 02 (5) if the amount for which the employer's insurance is liable under (3) 03 and (4) of this subsection is less than the total of the compensation benefits to which 04 the employee is entitled under this chapter, the director [BOARD] may, if the 05 director [IT] considers it necessary, require the employer to file security satisfactory 06 to the director [BOARD] to secure the payment of benefits due the employee or the 07 employee's dependents under this chapter; and 08 (6) upon compliance with the preceding requirements of this 09 subsection, the employer, as to the employee only, shall be considered to have secured 10 the payment of compensation under this chapter. 11 * Sec. 12. AS 23.30.012 is amended to read: 12 Sec. 23.30.012. Agreements in regard to claims. (a) At any time after 13 death, or after 30 days subsequent to the date of the injury, the employer and the 14 employee or the beneficiary or beneficiaries, as the case may be, have the right to 15 reach an agreement in regard to a claim for injury or death under this chapter [IN 16 ACCORDANCE WITH THE APPLICABLE SCHEDULE IN THIS CHAPTER], but 17 a memorandum of the agreement in a form prescribed by the director [BOARD] shall 18 be filed with the division [BOARD]. Otherwise, the agreement is void for any 19 purpose. An agreement filed with the division discharges the liability of the 20 employer for the compensation, notwithstanding the provisions of AS 23.30.130, 21 23.30.160, and 23.30.245, and is enforceable as a compensation order. 22 (b) If the claimant or beneficiary is not represented by an attorney 23 licensed to practice in this state, or the beneficiary is a minor, the division shall 24 request review of the agreement by a hearing panel. If approved by a hearing 25 panel [THE BOARD], the agreement is enforceable the same as an order or award of 26 a hearing panel [THE BOARD] and discharges the liability of the employer for the 27 compensation notwithstanding the provisions of AS 23.30.130, 23.30.160, and 28 23.30.245. The agreement shall be approved by a hearing panel [THE BOARD] only 29 when the terms conform to the provisions of this chapter and, if it involves or is likely 30 to involve permanent disability, a hearing panel [THE BOARD] may require an 31 impartial medical examination and a hearing in order to determine whether or not to
01 approve the agreement. A [THE BOARD MAY APPROVE] lump-sum settlement 02 may be approved [SETTLEMENTS] when it appears to be to the best interest of the 03 employee or beneficiary or beneficiaries. 04 * Sec. 13. AS 23.30.015(b) is amended to read: 05 (b) Acceptance of compensation under [AN AWARD IN] a compensation 06 order filed with the office of the commission [BY THE BOARD] operates as an 07 assignment to the employer of all rights of the person entitled to compensation and the 08 personal representative of a deceased employee to recover damages from the third 09 person unless the person or representative entitled to compensation commences an 10 action against the third person within one year after an order [AWARD]. 11 * Sec. 14. AS 23.30.015(e) is amended to read: 12 (e) An amount recovered by the employer under an assignment, whether by 13 action or compromise, shall be distributed as follows: 14 (1) the employer shall retain an amount equal to 15 (A) the expenses incurred by the employer with respect to the 16 action or compromise, including [A] reasonable attorney fees [FEE] 17 determined by a hearing panel [THE BOARD]; 18 (B) the cost of all benefits actually furnished by the employer 19 under this chapter; 20 (C) all amounts paid as compensation and second injury 21 [SECOND-INJURY] fund payments, and, if the employer is self-insured or 22 uninsured, all service fees paid under AS 23.05.067; 23 (D) the present value of all amounts payable later as 24 compensation, computed from a schedule prepared by the director [BOARD]; 25 and the present value of the estimated cost of all benefits to be furnished later 26 under AS 23.30.095 [AS ESTIMATED BY THE BOARD]; the amounts so 27 computed and estimated shall [TO] be retained by the employer as a trust fund 28 to pay compensation and the cost of benefits as they become due and to pay 29 any finally remaining excess sum to the person entitled to compensation or to 30 the representative; and 31 (2) the employer shall pay any excess to the person entitled to
01 compensation or to the representative of that person. 02 * Sec. 15. AS 23.30.015(j) is amended to read: 03 (j) Notice of the commencement of an action against a third party shall be 04 given to the division [BOARD] and to all interested parties within 30 days. If a 05 request for a hearing under AS 23.30.110 has been filed, notice of the 06 commencement of the action shall also be filed with the commission. 07 * Sec. 16. AS 23.30.025(a) is amended to read: 08 (a) An insurer may not enter into or issue a policy of insurance under this 09 chapter until its policy form has been submitted to and approved by the director of the 10 division of insurance. The director of the division of insurance may not approve the 11 policy form of an insurance company until the company files with it the certificate of 12 the director of the division of insurance showing that the company is authorized to 13 transact the business of workers' compensation insurance in the state. The filing of a 14 policy form by an insurance company with the division of workers' compensation 15 [BOARD] for approval constitutes, on the part of the company, a conclusive and 16 unqualified acceptance of the provisions of this chapter [,] and an agreement by it to 17 be bound by them. 18 * Sec. 17. AS 23.30.030(5) is amended to read: 19 (5) A termination of the policy by cancellation is not effective as to the 20 employees of the insured employer covered by it until 20 days after written notice of 21 the termination has been received by the division [BOARD]. If the employer has a 22 contract with the state or a home rule or other political subdivision of the state, and the 23 employer's policy is cancelled due to nonpayment of a premium, the termination of the 24 policy is not effective as to the employees of the insured employer covered by it until 25 20 days after written notice of the termination has been received by the contracting 26 agency, and the agency has the option of continuing the payments on behalf of the 27 employer in order to keep the policy in force. If, however, the employer has secured 28 insurance with another insurance carrier, cancellation is effective as of the date of the 29 new coverage. 30 * Sec. 18. AS 23.30.030(6) is amended to read: 31 (6) All claims for compensation, death benefits, physician's fees,
01 nurse's charges, hospital services, hospital supplies, medicines, prosthetic devices, 02 transportation charges to the nearest point where adequate medical facilities are 03 available, and burial expenses [,] may be made directly against either the employer or 04 the insurer, or both, and the order or award of a hearing panel [THE BOARD] may 05 be made against either the employer or the insurer or both. 06 * Sec. 19. AS 23.30.040(a) is amended to read: 07 (a) There is created a second injury fund, administered by the director 08 [COMMISSIONER]. Money in the second injury fund may only be paid for the 09 benefit of those persons entitled to payment of benefits from the second injury fund 10 under this chapter. Payments from the second injury fund must be made by the 11 director [COMMISSIONER] in accordance with the orders [AND AWARDS] of a 12 hearing panel [THE BOARD]. 13 * Sec. 20. AS 23.30.040(d) is amended to read: 14 (d) The director [BOARD] may refund a payment made into the second 15 injury fund if the employer or insurance carrier shows that it made the payment by 16 mistake or inadvertence, or if it shows there existed at the time of the death of the 17 employee a beneficiary entitled to benefits under AS 23.30.215. 18 * Sec. 21. AS 23.30.041(a) is amended to read: 19 (a) The director [BOARD] shall select and employ a reemployment benefits 20 administrator. The director [BOARD] may authorize the administrator to select and 21 employ additional staff. The administrator is in the partially exempt service under 22 AS 39.25.120. 23 * Sec. 22. AS 23.30.041(b) is amended to read: 24 (b) The administrator shall 25 (1) enforce regulations adopted by the department [BOARD] to 26 implement this section; 27 (2) recommend regulations for adoption by the department [BOARD] 28 that establish performance and reporting criteria for rehabilitation specialists; 29 (3) enforce the quality and effectiveness of reemployment benefits 30 provided for under this section; 31 (4) review on an annual basis the performance of rehabilitation
01 specialists to determine continued eligibility for delivery of rehabilitation services; 02 (5) submit to the department, on or before May 1 of each year, a report 03 of reemployment benefits provided under this section for the previous calendar year; 04 the report must include a general section, sections related to each rehabilitation 05 specialist employed under this section, and a statistical summary of all rehabilitation 06 cases, including 07 (A) the estimated and actual cost of each active rehabilitation 08 plan; 09 (B) the estimated and actual time of each rehabilitation plan; 10 (C) a status report on all individuals completing or terminating 11 a reemployment benefits program including a return to work date; 12 (D) the cost of reemployment benefits; 13 (6) maintain a list of rehabilitation specialists who meet the 14 qualifications established under this section; 15 (7) promote awareness among physicians, adjusters, injured workers, 16 employers, employees, attorneys, training providers, and rehabilitation specialists of 17 the reemployment program established in this subsection. 18 * Sec. 23. AS 23.30.041(d) is amended to read: 19 (d) Within 30 days after the referral by the administrator, the rehabilitation 20 specialist shall perform the eligibility evaluation and issue a report of findings. The 21 administrator may grant up to an additional 30 days for performance of the eligibility 22 evaluation upon notification of unusual and extenuating circumstances and the 23 rehabilitation specialist's request. Within 14 days after receipt of the report from the 24 rehabilitation specialist, the administrator shall notify the parties of the employee's 25 eligibility for reemployment preparation benefits. Within 10 days after the decision, 26 either party may seek review of the decision by requesting a hearing under 27 AS 23.30.110. The hearing shall be held within 30 days after it is requested. The 28 hearing panel [BOARD] shall uphold the decision of the administrator except for 29 abuse of discretion on the administrator's part. 30 * Sec. 24. AS 23.30.041(h) is amended to read: 31 (h) Within 90 days after the rehabilitation specialist's selection under (g) of
01 this section, the reemployment plan must be formulated and approved. The 02 reemployment plan must require continuous participation by the employee and must 03 maximize the usage of the employee's transferable skills. The reemployment plan 04 must include at least the following: 05 (1) a determination of the occupational goal in the labor market; 06 (2) an inventory of the employee's technical skills, transferable skills, 07 physical and intellectual capacities, academic achievement, emotional condition, and 08 family support; 09 (3) a plan to acquire the occupational skills to be employable; 10 (4) the cost estimate of the reemployment plan, including provider 11 fees; and the cost of tuition, books, tools [,] and supplies, transportation, temporary 12 lodging, or job modification devices; 13 (5) the estimated length of time that the plan will take; 14 (6) the date that the plan will commence; 15 (7) the estimated time of medical stability as predicted by a treating 16 physician or by a physician who has examined the employee at the request of the 17 employer or the director [BOARD], or by referral of the treating physician; 18 (8) a detailed description and plan schedule; 19 (9) a finding by the rehabilitation specialist that the inventory under (2) 20 of this subsection indicates that the employee can be reasonably expected to 21 satisfactorily complete the plan and perform in a new occupation within the time and 22 cost limitations of the plan; and 23 (10) a provision requiring that, after a person has been assigned to 24 perform medical management services for an injured employee, the person shall send 25 written notice to the employee, the employer, and the employee's physician explaining 26 in what capacity the person is employed, whom the person represents, and the scope of 27 the services to be provided. 28 * Sec. 25. AS 23.30.041(j) is amended to read: 29 (j) The employee, rehabilitation specialist, and the employer shall sign the 30 reemployment benefits plan. If the employer and employee fail to agree on a 31 reemployment plan, either party may submit a reemployment plan for approval to the
01 administrator; the administrator shall approve or deny a plan within 14 days after the 02 plan is submitted; within 10 days after [OF] the decision, either party may seek 03 review of the decision by requesting a hearing under AS 23.30.110; a hearing panel 04 [THE BOARD] shall uphold the decision of the administrator unless evidence is 05 submitted supporting an allegation of abuse of discretion on the part of the 06 administrator; a hearing panel [THE BOARD] shall render a decision within 30 days 07 after completion of the hearing. 08 * Sec. 26. AS 23.30.041(o) is amended to read: 09 (o) Upon the request of either party, the administrator shall decide whether the 10 employee has not cooperated as provided under (n) of this section. A hearing before 11 the administrator shall be held within 30 days after it is requested. The administrator 12 shall issue a decision within 14 days after the hearing. Within 10 days after the 13 administrator files the decision, either party may seek review of the decision by 14 requesting a hearing under AS 23.30.110; a hearing panel [THE BOARD] shall 15 uphold the decision of the administrator unless evidence is submitted supporting an 16 allegation of abuse of discretion on the part of the administrator; a hearing panel 17 [THE BOARD] shall render a decision within 30 days after completion of the hearing. 18 * Sec. 27. AS 23.30.041(p) is amended to read: 19 (p) When the United States Department of Labor publishes a new edition, 20 revision, or replacement for the "Selected Characteristics of Occupations Defined in 21 the Revised Dictionary of Occupational Titles" referred to in (e) of this section, the 22 director [BOARD] shall, not later than 90 days after the last day of the month in 23 which the new edition, revision, or replacement standard is published, hold an open 24 meeting under AS 44.62.310 to select the proposed date on which the new edition, 25 revision, or replacement standard will be implemented to make all eligibility 26 determinations required under (e) of this section. The date selected by the 27 department [BOARD] for implementing the new edition, revision, or replacement 28 standard may not be later than 90 days after the last day of the month in which the new 29 edition, revision, or replacement standard is published. After the meeting, the 30 director [BOARD] shall issue a public notice announcing the date selected by the 31 department. The requirements of AS 44.62.010 - 44.62.300 do not apply to the
01 selection or announcement of the date under this subsection. 02 * Sec. 28. AS 23.30.041(q) is amended to read: 03 (q) Notwithstanding AS 23.30.012, after medical stability has been determined 04 and a physician has predicted that the employee may have a permanent impairment 05 that may cause the employee to have permanent physical capacities that are less than 06 the physical demands of the employee's job at the time of injury, an employee may 07 waive any benefits or rights under this section, including an eligibility evaluation and 08 benefits related to a reemployment plan. To waive any benefits or rights under this 09 section, an employee must file a statement under oath with the division [BOARD] to 10 notify the parties of the waiver and to specify the scope of benefits or rights that the 11 employee seeks to waive. The statement must be on a form prescribed or approved by 12 the director [BOARD]. The division [BOARD] shall serve the notice of waiver on 13 all parties to the claim within 10 days after filing. The waiver is effective upon service 14 to the party. A waiver effective under this subsection discharges the liability of the 15 employer for the benefits or rights contained in this section. The waiver may not be 16 modified under AS 23.30.130. 17 * Sec. 29. AS 23.30.045(d) is amended to read: 18 (d) A contract may not be awarded by the state or a home rule or other 19 political subdivision of the state unless the person to whom the contract is to be 20 awarded has submitted to the contracting agency proof, furnished by the insurance 21 carrier, of current coverage by workers' compensation insurance from an insurance 22 company or association authorized to transact the business of workers' compensation 23 insurance in this state or proof, furnished by the division [BOARD], of a current 24 certificate of self-insurance from the director [BOARD]. The person to whom the 25 contract is awarded shall keep the workers' compensation insurance policy in effect 26 during the life of the contract with the state or political subdivision. If the state or the 27 political subdivision of the state fails to obtain proof of coverage or self-insurance or 28 to protect itself under (e) of this section, and an employee of the contractor is injured 29 during the term of the contract, the state or the political subdivision is liable for 30 workers' compensation to the employee if the employee is unable to recover from the 31 employer because of the employer's lack of financial assets. The state or the political
01 subdivision is not liable, however, to the employee for workers' compensation if the 02 employee can recover from the employer under (a) and (b) of this section. 03 * Sec. 30. AS 23.30.045(e) is amended to read: 04 (e) When a contracting agency of the state or a political subdivision receives 05 notice that the workers' compensation insurance policy of an employer to whom the 06 agency has awarded a contract has been cancelled due to nonpayment of a premium, 07 without being replaced by a comparable policy, the agency may either terminate the 08 contract with the employer or continue the premium payments on behalf of the 09 employer in order to keep the policy in force during the life of the agency's contract. 10 If the agency chooses to keep the policy in force, it may deduct its payments from the 11 contract price or bring an action against the employer to recover the amount of the 12 payments. When the contracting agency receives notice that the director [BOARD] 13 has revoked a certificate of self-insurance held by a person to whom a contract has 14 been awarded, the agency may terminate the contract. This subsection does not limit 15 the causes of action or remedies that the state or political subdivision may have against 16 the employer. 17 * Sec. 31. AS 23.30.065 is amended to read: 18 Sec. 23.30.065. Employer's record of injuries. An employer shall keep a 19 record in respect of an injury to an employee. The record must contain the 20 information of disease, other disability, or death with [IN] respect to an injury that the 21 division [BOARD] requires, and must be available to inspection by the division 22 [BOARD] or by a state authority at the times and under the conditions that the 23 department [BOARD] prescribes by regulation. 24 * Sec. 32. AS 23.30.070(a) is amended to read: 25 (a) Within 10 days from the date the employer has knowledge of an injury or 26 death or from the date the employer has knowledge of a disease or infection, alleged 27 by the employee or on behalf of the employee to have arisen out of and in the course 28 of the employment, the employer shall send to the division [BOARD] a report setting 29 out 30 (1) the name, address, and business of the employer; 31 (2) the name, address, and occupation of the employee;
01 (3) the cause and nature of the alleged injury or death; 02 (4) the year, month, day, and hour when and the particular locality 03 where the alleged injury or death occurred; and 04 (5) the other information that the division [BOARD] may require. 05 * Sec. 33. AS 23.30.070(b) is amended to read: 06 (b) Additional reports with [IN] respect to the injury and to the condition of 07 the employee shall be sent by the employer to the division [BOARD] at the times and 08 in the manner that the director [BOARD] prescribes. 09 * Sec. 34. AS 23.30.070(d) is amended to read: 10 (d) Mailing of the report and copy to the division [BOARD] in a stamped 11 envelope, within the time prescribed in (a) or (b) of this section, is compliance with 12 this section. 13 * Sec. 35. AS 23.30.070(f) is amended to read: 14 (f) An employer who fails or refuses to send a report required of the employer 15 by this section or who fails or refuses to send the report required by (a) of this section 16 within the time required shall, if so required by a hearing panel after a hearing 17 [THE BOARD], pay the employee or the legal representative of the employee or other 18 person entitled to compensation by reason of the employee's injury or death an 19 additional award equal to 20 percent of the amounts that were unpaid when due. The 20 award shall be against either the employer or the insurance carrier, or both. 21 * Sec. 36. AS 23.30.075 is amended to read: 22 Sec. 23.30.075. Employer's liability to pay. (a) An employer under this 23 chapter, unless exempted, shall either insure and keep insured for the employer's 24 liability under this chapter in an insurance company or association duly authorized to 25 transact the business of workers' compensation insurance in this state, or shall furnish 26 the division [BOARD] satisfactory proof of the employer's financial ability to pay 27 directly the compensation provided for. If an employer elects to pay directly, the 28 director [BOARD] may, in the director's [ITS] discretion, require the deposit of an 29 acceptable security, indemnity, or bond to secure the payment of compensation 30 liabilities as they are incurred. 31 (b) If an employer fails to insure and keep insured employees subject to this
01 chapter or fails to obtain a certificate of self-insurance from the division [BOARD], 02 upon conviction, the court shall impose a fine of $10,000 and may impose a sentence 03 of imprisonment for not more than one year. If an employer is a corporation, all 04 persons who, at the time of the injury or death, had authority to insure the corporation 05 or apply for a certificate of self-insurance, and the person actively in charge of the 06 business of the corporation shall be subject to the penalties prescribed in this 07 subsection and shall be personally, jointly, and severally liable together with the 08 corporation for the payment of all compensation or other benefits for which the 09 corporation is liable under this chapter if the corporation at that time is not insured or 10 qualified as a self-insurer. 11 * Sec. 37. AS 23.30.080(d) is amended to read: 12 (d) If an employer fails to insure or provide security as required by 13 AS 23.30.075, the director [BOARD] may petition a hearing examiner to issue a 14 stop order prohibiting the use of employee labor by the employer until the employer 15 insures or provides security as required by AS 23.30.075. The failure of an employer 16 to file evidence of compliance as required by AS 23.30.085 creates a rebuttable 17 presumption that the employer has failed to insure or provide security as required by 18 AS 23.30.075. If the director presents evidence with the petition that hazards in 19 the employment constitute a danger that could reasonably be expected to 20 immediately cause an employee death or serious physical harm, the petition may 21 be heard on shortened notice. If an employer fails to comply with a stop order 22 issued under this section, a hearing examiner [THE BOARD] shall assess a civil 23 penalty of $1,000 a [PER] day. The employer may not obtain a public contract with 24 the state or a political subdivision of the state for three years following the violation of 25 the stop order. 26 * Sec. 38. AS 23.30.080 is amended by adding new subsections to read: 27 (e) If an employer fails, refuses, or neglects to insure or provide security as 28 required by AS 23.30.075(a), the director may petition a hearing examiner to order 29 payment of a civil penalty to the state of an amount up to $100 for each employee for 30 each day an employee is employed while the employer is uninsured or does not 31 provide the security required by AS 23.30.075(a). The failure of an employer to file
01 evidence of compliance as required by AS 23.30.085 creates a rebuttable presumption 02 that the employer has failed to obtain and keep insurance or provide security as 03 required by AS 23.30.075(a). If the director presents evidence with the petition that 04 hazards in the employment constitute a danger that could reasonably be expected to 05 immediately cause an employee death or serious physical harm, the petition may be 06 heard on shortened notice. 07 (f) If an employer fails to pay a civil penalty ordered under (d) or (e) of this 08 section within seven days after the date of service of the order upon the employer, the 09 director may declare the employer in default. The director shall file a certified copy of 10 the penalty order and declaration of default with the clerk of the superior court. The 11 court shall, upon the filing of the copy of the order and declaration, enter judgment for 12 the amount declared in default if it is in accordance with law. Anytime after a 13 declaration of default, the attorney general, when requested to do so by the director, 14 shall take appropriate action to assure collection of defaulted payment. Review of the 15 judgment may be had as provided under the Alaska Rules of Civil Procedure. Final 16 proceedings to execute the judgment may be had by writ of execution. 17 * Sec. 39. AS 23.30.085(a) is amended to read: 18 (a) An employer subject to this chapter, unless exempted, shall initially file 19 evidence of compliance with the insurance provisions of this chapter with the division 20 [BOARD], in the form prescribed by the director [IT]. The employer shall also give 21 evidence of compliance within 10 days after the termination of the employer's 22 insurance by expiration or cancellation. These requirements do not apply to an 23 employer who has certification from the division [BOARD] of the employer's 24 financial ability to pay compensation directly without insurance. 25 * Sec. 40. AS 23.30.090 is amended to read: 26 Sec. 23.30.090. Self-insurance certificates. If an employer has complied 27 with the provisions of this chapter relating to self-insurance and has paid annual 28 service fees assessed under AS 23.05.067, the director [BOARD] shall issue the 29 employer a certificate that shall remain in force for a period fixed by the director 30 [BOARD]. The director [BOARD] may, upon at least 10 days' notice and a hearing, 31 revoke a self-insurance certificate upon satisfactory proof that an employer is no
01 longer entitled to it. The hearing shall be held by a hearing examiner. The 02 hearing examiner shall make a proposed decision to the director, who may adopt, 03 amend or reject it in the director's discretion. After revocation, the director 04 [BOARD] may grant a new certificate to an employer, upon the employer's petition 05 and satisfactory proof of the employer's financial ability as provided in this chapter. 06 An employer authorized as a self-insurer shall provide claims facilities through its 07 own staffed adjusting facilities located within the state, or independent, licensed, 08 resident adjusters with power to effect settlement within the state. 09 * Sec. 41. AS 23.30.090 is amended by adding a new subsection to read: 10 (b) All testimony given before a hearing examiner under this section shall be 11 recorded, but need not be transcribed unless further review is initiated. Hearings 12 before a hearing examiner shall be open to the public. 13 * Sec. 42. AS 23.30.095(a) is amended to read: 14 (a) The employer shall furnish medical, surgical, and other attendance or 15 treatment, nurse and hospital service, medicine, crutches, and apparatus for the period 16 that [WHICH] the nature of the injury or the process of recovery requires, not 17 exceeding two years from and after the date of injury to the employee. However, if 18 the condition requiring the treatment, apparatus, or medicine is a latent one, the two- 19 year period runs from the time the employee has knowledge of the nature of the 20 employee's disability and its relationship to the employment and after disablement. If 21 [IT SHALL BE ADDITIONALLY PROVIDED THAT, IF] continued treatment or 22 care or both beyond the two-year period is indicated, the injured employee has the 23 right of review by a hearing panel [THE BOARD]. The hearing panel [BOARD] 24 may authorize continued treatment or care or both as the process of recovery may 25 require. When medical care is required, the injured employee may designate a 26 licensed physician to provide all medical and related benefits. The employee may not 27 make more than one change in the employee's choice of attending physician without 28 the written consent of the employer. Referral to a specialist by the employee's 29 attending physician is not considered a change in physicians. Upon procuring the 30 services of a physician, the injured employee shall give proper notification of the 31 selection to the employer within a reasonable time after first being treated. Notice of a
01 change in the attending physician shall be given before the change. 02 * Sec. 43. 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]. A hearing panel [THE BOARD] shall, 09 however, excuse the failure to furnish notice within 14 days when the hearing panel 10 [IT] finds it to be in the interest of justice to do so, and the hearing panel [IT] may, 11 upon application by a party in interest, make an award for the reasonable value of the 12 medical or surgical treatment so obtained by the employee. When a claim is made for 13 a course of treatment requiring continuing and multiple treatments of a similar nature, 14 in addition to the notice, the physician or health care provider shall furnish a written 15 treatment plan if the course of treatment will require more frequent outpatient visits 16 than the standard treatment frequency for the nature and degree of the injury and the 17 type of treatments. The treatment plan shall be furnished to the employee and the 18 employer within 14 days after treatment begins. The treatment plan must include 19 objectives, modalities, frequency of treatments, and reasons for the frequency of 20 treatments. If the treatment plan is not furnished as required under this subsection, 21 neither the employer nor the employee may be required to pay for treatments that 22 exceed the frequency standard. The director shall propose and the department 23 [BOARD] shall adopt regulations establishing standards for frequency of treatment. 24 * Sec. 44. AS 23.30.095(d) is amended to read: 25 (d) If at any time during the period the employee unreasonably refuses to 26 submit to medical or surgical treatment, a hearing panel [THE BOARD] may by 27 order suspend the payment of further compensation while the refusal continues, and no 28 compensation may be paid at any time during the period of suspension, unless the 29 circumstances justified the refusal. 30 * Sec. 45. AS 23.30.095(e) is amended to read: 31 (e) The employee shall, after an injury, at reasonable times during the
01 continuance of the disability, if requested by the employer or when ordered by a 02 hearing panel [THE BOARD], submit to an examination by a physician or surgeon of 03 the employer's choice authorized to practice medicine under the laws of the 04 jurisdiction in which the examination occurs, furnished and paid for by the employer. 05 The employer may not make more than one change in the employer's choice of a 06 physician or surgeon without the written consent of the employee. Referral to a 07 specialist by the employer's physician is not considered a change in physicians. An 08 examination requested by the employer not less than 14 days after injury, and every 60 09 days thereafter, shall be presumed to be reasonable, and the employee shall submit to 10 the examination without further request or order by a hearing panel [THE BOARD]. 11 Unless medically appropriate, the physician shall use existing diagnostic data to 12 complete the examination. Facts relative to the injury or claim communicated to or 13 otherwise learned by a physician or surgeon who may have attended or examined the 14 employee [,] or who may have been present at an examination are not privileged, 15 either in the hearings provided for in this chapter or an action to recover damages 16 against an employer who is subject to the compensation provisions of this chapter. If 17 an employee refuses to submit to an examination provided for in this section, the 18 employee's rights to compensation shall be suspended until the obstruction or refusal 19 ceases, and the employee's compensation during the period of suspension may, in the 20 discretion of a hearing panel [THE BOARD] or the court determining an action 21 brought for the recovery of damages under this chapter, be forfeited. In [THE 22 BOARD IN] any case of death, a hearing examiner may order [REQUIRE] an 23 autopsy at the expense of the party requesting the autopsy. An autopsy may not be 24 held without notice first being given to the widow or widower or next of kin if they 25 reside in the state or their whereabouts can be reasonably ascertained, of the time and 26 place of the autopsy and reasonable time and opportunity given the widow or widower 27 or next of kin to have a representative present to witness the autopsy. If adequate 28 notice is not given, the findings from the autopsy may be suppressed on petition 29 [MOTION] made to a hearing examiner [THE BOARD] or to the superior court, as 30 the case may be. 31 * Sec. 46. AS 23.30.095(f) is amended to read:
01 (f) All fees and other charges for medical treatment or service shall be subject 02 to regulation by the department [BOARD] but may not exceed usual, customary, and 03 reasonable fees for the treatment or service in the community in which it is rendered, 04 as determined by the director [BOARD]. An employee may not be required to pay a 05 fee or charge for medical treatment or service. The director shall propose and the 06 department [BOARD] shall adopt updated usual, customary, and reasonable medical 07 fee schedules at least once each year. 08 * Sec. 47. AS 23.30.095(h) is amended to read: 09 (h) Upon the filing with the division [BOARD] by a party in interest of an 10 application or other pleading, all parties to the proceeding must immediately, or in any 11 event within five days after service of the pleading, send to the division [BOARD] the 12 original signed reports of all physicians relating to the proceedings that [WHICH] 13 they may have in their possession or under their control, and copies of the reports shall 14 be served by the party immediately on any [THE] adverse party. There is a 15 continuing duty on all [THE] parties to [SO] file and serve all the reports during the 16 pendency of the proceeding. 17 * Sec. 48. AS 23.30.095(j) is amended to read: 18 (j) The director [BOARD] may appoint a medical services review committee, 19 or contract with an existing organization in the state or another state, to assist and 20 advise the director [BOARD] in matters involving the appropriateness, necessity, and 21 cost of medical and related services provided under this chapter. 22 * Sec. 49. AS 23.30.095(k) is amended to read: 23 (k) In the event of a medical dispute regarding determinations of causation, 24 medical stability, ability to enter a reemployment plan, degree of impairment, 25 functional capacity, the amount and efficacy of the continuance of or necessity of 26 treatment, or compensability between the employee's attending physician and the 27 employer's independent medical evaluation, the director [BOARD] may require that a 28 second independent medical evaluation be conducted by a physician or physicians 29 selected [BY THE BOARD] from a list established and maintained by the director 30 [BOARD]. The cost of an examination and medical report shall be paid by the 31 employer. The report of an independent medical examiner shall be furnished to the
01 division [BOARD] and to the parties within 14 days after the examination is 02 concluded. A person may not seek damages from an independent medical examiner 03 caused by the rendering of an opinion or providing testimony under this subsection, 04 except in the event of fraud or gross incompetence. 05 * Sec. 50. AS 23.30.100(a) is amended to read: 06 (a) Notice of an injury or death with [IN] respect to which compensation is 07 payable under this chapter shall be given within 30 days after the date of such injury 08 or death to the division [BOARD] and to the employer. 09 * Sec. 51. AS 23.30.100(c) is amended to read: 10 (c) Notice shall be given to the division [BOARD] by delivering it or sending 11 it by mail addressed to the division's [BOARD'S] office, and to the employer by 12 delivering it to the employer or by sending it by mail addressed to the employer at the 13 employer's last known place of business. If the employer is a partnership, the notice 14 may be given to a partner, or, if a corporation, the notice may be given to an agent or 15 officer upon whom legal process may be served or who is in charge of the business in 16 the place where the injury occurred. 17 * Sec. 52. AS 23.30.100(d) is amended to read: 18 (d) Failure to give notice does not bar a claim under this chapter 19 (1) if the employer, an agent of the employer in charge of the business 20 in the place where the injury occurred, or the carrier had knowledge of the injury or 21 death and a hearing panel [THE BOARD] determines that the employer or carrier has 22 not been prejudiced by failure to give notice; 23 (2) if a hearing panel [THE BOARD] excuses the failure on the 24 ground that, for some satisfactory reason, notice could not be given; 25 (3) unless objection to the failure is raised before a hearing panel 26 [THE BOARD] at the first hearing of a claim for compensation with [IN] respect to 27 the injury or death. 28 * Sec. 53. AS 23.30.105(a) is amended to read: 29 (a) The right to compensation for disability under this chapter is barred unless 30 a claim for it is filed within two years after the employee has knowledge of the nature 31 of the employee's disability and its relation to the employment and after disablement.
01 However, the maximum time for filing the claim in any event other than arising out of 02 an occupational disease shall be four years from the date of injury, and the right to 03 compensation for death is barred unless a claim [THEREFOR] is filed within one year 04 after the death, except that, if payment of compensation has been made without an 05 award on account of the injury or death, a claim may be filed within two years after 06 the date of the last payment of benefits under AS 23.30.041, 23.30.180, 23.30.185, 07 23.30.190, 23.30.200, or 23.30.215. In [IT IS ADDITIONALLY PROVIDED THAT, 08 IN] the case of latent defects pertinent to and causing compensable disability, the 09 injured employee has the full right to claim compensation as shall be determined by a 10 hearing panel [THE BOARD], time limitations notwithstanding. 11 * Sec. 54. AS 23.30.107 is amended to read: 12 Sec. 23.30.107. Release of information. (a) Upon written request, an 13 employee shall provide written authority to the employer, carrier, rehabilitation 14 specialist, or reemployment benefits administrator to obtain medical and rehabilitation 15 information relative to the employee's injury. The request must include notice of the 16 employee's right to file a petition for a protective order with the division [BOARD] 17 and must be served by certified mail to the employee's address on the notice of injury 18 or by hand delivery to the employee. This subsection may not be construed to 19 authorize an employer, carrier, rehabilitation specialist, or reemployment benefits 20 administrator to request medical or other information that is not applicable to the 21 employee's injury. 22 (b) Medical or rehabilitation records in an employee's file maintained by the 23 division or held by the commission [BOARD] are not public records subject to 24 public inspection and copying under AS 40.25. This subsection does not prohibit 25 (1) the reemployment benefits administrator, the division, the office of 26 the commission [BOARD], or the department from releasing medical or rehabilitation 27 records in an employee's file, without the employee's consent, to a physician providing 28 medical services under AS 23.30.095(k) or 23.30.110(g), a party to a claim filed by 29 the employee, or a governmental agency; or 30 (2) the quoting or discussing of medical or rehabilitation records 31 contained in an employee's file during a hearing on a claim for compensation [,] or in
01 a decision and order of the hearing examiner, hearing panel, or commission 02 [BOARD]. 03 * Sec. 55. AS 23.30.108 is amended to read: 04 Sec. 23.30.108. Prehearing conferences [PREHEARINGS] on discovery 05 matters; objections to requests for release of information; sanctions for 06 noncompliance. (a) If an employee objects to a request for written authority under 07 AS 23.30.107, the employee must file a petition with the division [BOARD] seeking a 08 protective order within 14 days after service of the request. If the employee fails to 09 file a petition and fails to deliver the written authority as required by AS 23.30.107 10 within 14 days after service of the request, the employee's rights to benefits under this 11 chapter are suspended until the written authority is delivered. 12 (b) If a petition seeking a protective order is filed, the division shall 13 promptly notify the commission, and the commission clerk [BOARD] shall set a 14 prehearing conference within 21 days after the filing date of the petition. At a 15 prehearing conference conducted by a hearing examiner [THE BOARD'S 16 DESIGNEE], the hearing examiner [BOARD'S DESIGNEE] has the authority to 17 resolve disputes concerning the written authority. If the hearing examiner [BOARD 18 OR THE BOARD'S DESIGNEE] orders delivery of the written authority and if the 19 employee refuses to deliver it within 10 days after being ordered to do so, the 20 employee's rights to benefits under this chapter are suspended until the written 21 authority is delivered. During any period of suspension under this subsection, the 22 employee's benefits under this chapter are forfeited unless a hearing examiner [THE 23 BOARD], or the court determining an action brought for the recovery of damages 24 under this chapter, determines that good cause existed for the refusal to provide the 25 written authority. 26 (c) At a prehearing conference on discovery matters conducted by a hearing 27 examiner [THE BOARD'S DESIGNEE], the hearing examiner [BOARD'S 28 DESIGNEE] shall direct parties to sign releases or produce documents, or both, if the 29 parties present releases or requests for documents that are likely to lead to admissible 30 evidence relative to an employee's injury. If a party refuses to comply with an order 31 by a hearing examiner [THE BOARD'S DESIGNEE OR THE BOARD] concerning
01 discovery matters, a hearing examiner [THE BOARD] may impose appropriate 02 sanctions in addition to any forfeiture of benefits, including dismissing the party's 03 claim, petition, or defense. A party may petition the commission for expedited 04 review of an order of a hearing examiner on discovery matters within seven days 05 after the date of service of the challenged order, and a party opposing the petition 06 shall respond within seven days after service of the petition. The commission 07 shall determine whether to grant or deny a petition for review within 10 days 08 after a response is due. If [A DISCOVERY DISPUTE COMES BEFORE] the 09 commission grants a petition [BOARD] for expedited review of a discovery 10 determination by a hearing examiner [THE BOARD'S DESIGNEE], the commission 11 [BOARD] may not consider any evidence or argument that was not presented to the 12 hearing examiner [BOARD'S DESIGNEE], but shall determine the issue solely on 13 the basis of the written record. The decision by the commission [BOARD] on a 14 discovery dispute shall be made within 30 days. The commission [BOARD] shall 15 uphold a hearing examiner's [THE DESIGNEE'S] decision except when the hearing 16 examiner's [BOARD'S DESIGNEE'S] determination is an abuse of discretion. 17 * Sec. 56. AS 23.30.110 is amended to read: 18 Sec. 23.30.110. Procedure on claims and petitions. (a) Subject to the 19 provisions of AS 23.30.105, a claim for or petition relating to compensation or 20 benefits or both may be filed with the division [BOARD] in accordance with its 21 regulations at any time after the first seven days of disability following an injury, or at 22 any time after death, and a hearing panel [THE BOARD] may hear and determine all 23 questions with [IN] respect to the claim or petition. 24 (b) Within 10 days after a claim or petition is filed, the division [BOARD], in 25 accordance with its regulations, shall notify the opposing party, employer, and any 26 other person, other than the claimant or petitioner, whom the director [BOARD] 27 considers an interested party that a claim or petition has been filed. The notice may 28 be served personally [UPON THE EMPLOYER OR OTHER PERSON,] or sent by 29 certified [REGISTERED] mail. 30 (c) Before a hearing is scheduled, the party seeking a hearing shall file with 31 the office of the commission a request for a hearing together with an affidavit stating
01 that the party has completed necessary discovery, has obtained necessary evidence, 02 and is prepared for the hearing. An opposing party shall have 10 days after the 03 hearing request is filed to file a response. If a party opposes the hearing request, a 04 hearing examiner [THE BOARD OR A BOARD DESIGNEE] shall, within 30 days 05 after [OF] the filing of the opposition, conduct a pre-hearing conference, plan the 06 timing and sequence of discovery and other preliminary matters, and set a 07 reasonable hearing date. If opposition is not filed, a hearing examiner shall 08 schedule a hearing not [HEARING SHALL BE SCHEDULED NO] later than 60 09 days after the receipt of the hearing request. The commission clerk [BOARD] shall 10 give each party at least 10 days' notice of the hearing, either personally or by certified 11 mail. After a hearing has been scheduled, the parties may not stipulate to change the 12 hearing date or to cancel, postpone, or continue the hearing, except for good cause as 13 determined by the hearing examiner. The hearing shall be before a hearing panel 14 unless otherwise provided by this chapter [BOARD]. After completion of the 15 hearing, the hearing examiner [BOARD] shall close the hearing record. If a 16 settlement agreement is reached by the parties less than 14 days before the hearing, the 17 parties shall appear at the time of the scheduled hearing to state the terms of the 18 settlement agreement. A decision by a majority of the hearing panel shall be the 19 decision of the panel. After the hearing panel has reached a decision, the hearing 20 examiner shall prepare a draft of the decision and circulate the decision to the 21 other panel members for comment, revision, and approval. A panel member who 22 does not agree, in whole or in part, with the decision of the hearing panel shall 23 prepare a written dissent. Within 30 days after the hearing record closes, the 24 hearing examiner [BOARD] shall file the hearing panel's [ITS] decision with any 25 dissent. If the employer controverts a claim on a director-prescribed [BOARD- 26 PRESCRIBED] controversion notice and the employee does not request a hearing 27 within two years following the filing of the controversion notice, the claim is denied. 28 (d) At the hearing, the parties [CLAIMANT AND THE EMPLOYER] may 29 each present evidence with [IN] respect to the claim or petition and may be 30 represented by any person authorized in writing for that purpose. 31 (e) The order rejecting the claim or petition, or making the award, referred to
01 in this chapter as a compensation order, shall be filed in the office of the commission 02 [BOARD], and a copy of it shall be sent by certified [REGISTERED] mail to the 03 parties [CLAIMANT AND TO THE EMPLOYER] at the last known address of each. 04 (f) An award of compensation for disability or an order dismissing a claim 05 may be made after the death of an injured employee. 06 (g) An injured employee claiming or entitled to compensation shall submit to 07 the physical examination by a duly qualified physician that a hearing panel [WHICH 08 THE BOARD] may require. The place or places shall be reasonably convenient for 09 the employee. The physician or physicians as the employee, employer, or carrier may 10 select and pay for may participate in an examination if the employee, employer, or 11 carrier so requests. Proceedings shall be suspended and no compensation may be 12 payable for a period during which the employee refuses to submit to examination. 13 (h) The filing of a hearing request under (c) of this section suspends the 14 running of the two-year time period specified in (c) of this section. However, if the 15 employee subsequently requests a continuance of the hearing and the request is 16 granted [APPROVED BY THE BOARD], the granting of the continuance renders the 17 request for hearing inoperative, and the two-year time period specified in (c) of this 18 section continues to run again from the date of a hearing examiner's [THE 19 BOARD'S] notice to the employee of [THE BOARD'S GRANTING OF] the 20 continuance and of its effect. If the employee fails to again request a hearing before 21 the conclusion of the two-year time period in (c) of this section, the claim is denied. 22 * Sec. 57. AS 23.30.110 is amended by adding new subsections to read: 23 (i) An order dismissing a claim in whole or in part may be made before a 24 hearing on the merits of the claim when (1) the claim requests relief that cannot be 25 granted under this chapter; (2) there is a lack of jurisdiction over the subject matter of 26 the claim or the person under this chapter; (3) division process or service of process 27 was insufficient; (4) the claim has not been prosecuted or a hearing was not requested 28 within the time allowed in (c) of this section; or (5) the claim is barred by a statute of 29 limitation. If, within 60 days after service of an order dismissing a claim under (1) - 30 (3) of this subsection, the defects stated in the order are cured, the dismissal may be 31 vacated. Otherwise, the order of dismissal is a final compensation order.
01 (j) At any time, a party may petition for a summary decision on all or part of a 02 claim. The hearing panel shall grant the petition if (1) the hearing panel finds all 03 reasonable discovery has been made on the issues presented; and (2) the record shows 04 that there is no genuine issue of any material fact and that the petitioner is entitled to a 05 decision as a matter of law. The hearing examiner may file a compensation order in 06 favor of the petitioner if the hearing panel's summary decision adjudicates all issues in 07 the claim with respect to the petitioner. 08 * Sec. 58. AS 23.30 is amended by adding a new section to read: 09 Sec. 23.30.112. Hearing examiners. (a) Unless otherwise provided in this 10 chapter, hearings on claims and petitions shall be conducted by a hearing examiner 11 employed by the commission. A hearing examiner shall be 12 (1) licensed to practice law in this state at the time of appointment and 13 have three years experience in this state in the field of workers' compensation or in a 14 similar field of practice; 15 (2) compensated at Range 24 of the schedule set out in 16 AS 39.27.011(a), but is not a public employee for purposes of AS 23.40; and 17 (3) impartial and unbiased in all proceedings under this chapter, 18 conduct hearings as a member of a hearing panel fairly and impartially on claims and 19 petitions arising under this chapter, and file written decisions and orders. 20 (b) A hearing examiner may 21 (1) for the purposes of this chapter, subpoena witnesses, administer or 22 cause to be administered oaths, and order production of parts of the books and records 23 of the parties to a proceeding or other records, documents, or papers that relate to 24 questions in dispute; the superior court, on application of the hearing examiner under 25 AS 44.62.590, shall enforce the attendance and testimony of witnesses and the 26 production and examination of books, papers, and records; 27 (2) direct a physician or hospital rendering medical treatment or 28 service under this chapter to furnish to the division periodic reports of treatment or 29 services on forms prescribed by the division; 30 (3) arrange to have hearings held by the commission, officer, or 31 tribunal having authority to hear cases arising under the workers' compensation law of
01 any other state, of the District of Columbia, or of any territory of the United States, 02 when a proceeding in this state so requires; the testimony and proceedings at the 03 hearing shall be reported to the commission and are a part of the record in the case; 04 evidence taken at the hearing is subject to rebuttal upon final hearing under this 05 chapter. 06 Sec. 23.30.113. Hearings before a hearing examiner or hearing panel. (a) 07 The hearing examiner or hearing panel, in conducting a hearing under AS 23.30.110, 08 is not bound by common law or statutory rules of evidence or by technical or formal 09 rules of procedure, except as provided by this chapter and the regulations of the 10 commission. The hearing may be conducted in the manner designed to best ascertain 11 the rights of the parties. In proceedings before hearing examiners and hearing panels, 12 the administrative adjudication procedures of AS 44.62 (Administrative Procedure 13 Act) do not apply, except that AS 44.62.410(b), 44.62.460(a) - (d), 44.62.470, 14 44.62.480, 44.62.510, and 44.62.590 shall apply to proceedings under this chapter. 15 Declarations of a deceased employee concerning the injury with respect to which the 16 investigation or inquiry is being made or the hearing conducted shall be received in 17 evidence and are, if corroborated by other evidence, sufficient to establish the injury. 18 (b) The hearing examiner shall preside over hearings of a hearing panel and 19 perform all other functions in an impartial manner with due regard for the rights of all 20 parties and the facts and the law, and consistent with the orderly and prompt dispatch 21 of proceedings under this chapter. The hearing examiner shall rule on questions of 22 procedure, the admission and exclusion of evidence, and make rulings and instruct the 23 board members on matters of law. 24 (c) A hearing examiner shall voluntarily seek disqualification and withdraw 25 from a case in which the hearing examiner cannot accord a fair and impartial hearing 26 or consideration. A request for disqualification of a hearing examiner for bias or 27 partiality shall be determined by the hearing examiner concerned or, if the hearing is 28 before a hearing panel, by the other members of the panel. Except as otherwise 29 permitted by law, hearing examiners or a member of a hearing panel may not engage 30 in interviews with or hear evidence or argument from, a party directly or indirectly, 31 except upon opportunity for all parties to be present. Copies of all communications to
01 hearing examiners or a member of a hearing panel shall be served on all other parties. 02 (d) All testimony given during a hearing before a hearing examiner or a 03 hearing panel shall be recorded but need not be transcribed unless further review is 04 initiated. Hearings before a hearing examiner or hearing panel shall be open to the 05 public. 06 * Sec. 59. AS 23.30.115 is amended to read: 07 Sec. 23.30.115. Attendance and fees of witnesses. (a) A person is not 08 required to attend as a witness in a hearing [PROCEEDING] before the commission, 09 a hearing panel, or hearing examiner [BOARD] at a place more than 100 miles 10 from the person's place of residence, unless the person's lawful mileage and fee for 11 one day's attendance is first paid or tendered to the person; but the testimony of a 12 witness may be taken by deposition or interrogatories according to the Rules of Civil 13 Procedure. 14 (b) A witness summoned to testify in a hearing [PROCEEDING] before the 15 commission, a hearing panel, or hearing examiner [BOARD] or whose deposition 16 is taken shall receive the same fees and mileage as a witness in the superior court. 17 The commission clerk may issue subpoenas and subpoenas duces tecum to 18 summon a witness to testify in a hearing or deposition and to produce records. 19 The superior court shall enforce the subpoenas on application by the commission 20 in the manner provided in AS 44.62.590. 21 * Sec. 60. AS 23.30.120(b) is amended to read: 22 (b) If delay in giving notice is excused by the hearing panel [BOARD] under 23 AS 23.30.100(d)(2), the burden of proof of the validity of the claim shifts to the 24 employee, notwithstanding the provisions of (a) of this section. 25 * Sec. 61. AS 23.30.122 is repealed and reenacted to read: 26 Sec. 23.30.122. Credibility of witnesses. The hearing panel has the sole 27 power to determine the credibility of testimony presented by a witness. When 28 credibility is disputed in a proceeding before the hearing panel, the hearing panel's 29 determination of credibility must be supported by specific findings. 30 * Sec. 62. AS 23.30 is amended by adding a new section to read: 31 Sec. 23.30.124. Reconsideration of compensation order. (a) A hearing
01 panel may order a reconsideration of all or part of a compensation order on the hearing 02 panel's own motion or on petition of a party. A petition for reconsideration must be 03 filed with the office of the commission within 15 days after mailing of the 04 compensation order. The power to order reconsideration expires 30 days after the 05 mailing of a compensation order. If an order of reconsideration is not filed with the 06 office of the commission within the time allowed for ordering reconsideration, the 07 petition is considered denied. 08 (b) If reconsideration is ordered under (a) of this section, the compensation 09 order under reconsideration is stayed until the decision on reconsideration is filed. 10 The case may be reconsidered by the hearing panel on of all the pertinent parts of the 11 record and the additional arguments that are permitted by the hearing examiner. A 12 written decision on reconsideration shall be filed with the commission within 30 days 13 after the date the order of reconsideration was filed. 14 * Sec. 63. AS 23.30.125 is repealed and reenacted to read: 15 Sec. 23.30.125. Administrative review of compensation order. (a) A 16 compensation order becomes effective when filed with the office of the commission as 17 provided in AS 23.30.110, and, unless proceedings to reconsider, suspend, or set aside 18 the order are instituted as provided in this chapter, the order becomes final on the 31st 19 day after it is filed. 20 (b) Notwithstanding other provisions of law, a decision or order of a hearing 21 examiner or hearing panel is subject to review by the commission as provided in this 22 chapter. 23 (c) If a compensation order is not in accordance with law or fact, the order 24 may be suspended or set aside, in whole or in part, through proceedings in the 25 commission brought by a party in interest against all other parties to the proceedings 26 before the hearing panel or hearing examiner. The payment of the amounts required 27 by an award may not be stayed pending a final decision in the proceeding unless, upon 28 application for a stay, the commission, on hearing, after not less than three days' notice 29 to the parties in interest and the director, allows the stay of payment, in whole or in 30 part, where the party filing the application would otherwise suffer irreparable damage. 31 The order of the commission allowing a stay must contain a specific finding, based
01 upon evidence submitted to the commission and identified by reference to the 02 evidence, that irreparable damage would result to the party applying for a stay and 03 specifying the nature of the damage. 04 (d) Proceedings for reconsidering, suspending, setting aside, or enforcing a 05 compensation order, whether rejecting a claim or making an award, may not be 06 instituted, except as provided in this chapter. 07 * Sec. 64. AS 23.30 is amended by adding new sections to read: 08 Sec. 23.30.126. Review of director's decision. (a) A decision by the director 09 that affects a right, privilege, benefit, or duty that is imposed or conferred under this 10 chapter is subject to review by the commission. A decision by the director becomes 11 effective when filed with the division, and, unless proceedings to suspend or set aside 12 the decision are instituted as provided in this section, the decision becomes final on the 13 31st day after it is filed. 14 (b) If a decision of the director is not in accordance with law or fact, the 15 decision may be suspended or set aside, in whole or in part, through proceedings in the 16 commission brought by a party in interest against the director and all other parties to 17 the proceedings. The decision may not be stayed pending final decision in the 18 proceeding unless, upon application for a stay, the commission, on hearing, after not 19 less than three days notice to the parties in interest and the director, allows the stay, in 20 whole or in part, where irreparable damage would otherwise result. The order of the 21 commission allowing the stay shall contain a specific finding, based upon evidence 22 submitted to the commission and identified by reference to it, that irreparable damage 23 would result to the party applying for a stay, and specifying the nature of the damage. 24 (c) Proceedings for suspending, setting aside, or enforcing a director's decision 25 or determination may not be instituted except as provided in this chapter. 26 Sec. 23.30.127. Appeals to commission. (a) A party in interest may appeal a 27 compensation order issued by a hearing examiner or a hearing panel to the 28 commission within 30 days after the compensation order is filed with the office of the 29 commission under AS 23.30.110. The director may intervene in an appeal. If a party 30 in interest is not represented by counsel and the compensation order concerns an 31 unsettled question of law, the director may file an appeal to obtain a ruling on the
01 question by the commission. 02 (b) A party in interest may appeal a decision of the director to the commission 03 within 30 days after the decision is filed with the division. 04 (c) An appeal shall be initiated by filing with the office of the commission 05 (1) a signed notice of appeal specifying the compensation order or 06 director's decision appealed from; 07 (2) a statement of the grounds upon which the appeal is taken; and 08 (3) other materials the commission may by regulation require. 09 (d) A cross-appeal may be initiated by filing with the office of the commission 10 a signed notice of cross-appeal within 30 days after the decision is filed or within 15 11 days after service of notice of an appeal, whichever is later. The notice of cross- 12 appeal shall specify the compensation order appealed from and the grounds upon 13 which the cross-appeal is taken. 14 (e) The office of the commission may charge a fee not to exceed $100, for 15 filing appeals and cross-appeals, except that the office of the commission may not 16 charge a fee if the appellant is the state or a political subdivision of the state. The 17 commission may require an appellant to pay the costs of the transcript of hearing and 18 the preparation of the record on appeal. The commission may require cross-appellants 19 or intervenors to share in the costs. 20 (f) If a request for reconsideration of a hearing panel's decision is timely filed 21 with the office of the commission, the notice of appeal must be filed within 30 days 22 after the reconsideration decision is mailed to the parties, or the date the request for 23 reconsideration is considered denied, in the absence of any action on the request, 24 whichever is earlier. 25 (g) The commission may require written briefs and make other rules and 26 orders to facilitate the business of the commission and advance the prompt, fair, and 27 just disposition of appeals. 28 Sec. 23.30.128. Commission proceedings. (a) The commission may review 29 de novo all discretionary actions, findings of fact, and conclusions of law by the 30 hearing examiner, hearing panel, or the director in hearing, determining, or otherwise 31 acting on any compensation claim or petition. A hearing panel's findings regarding
01 the credibility of testimony of a witness are binding on the commission. The findings 02 of the hearing panel, if not set aside by the commission, are conclusive. 03 (b) The matter on appeal shall be decided by the commission on the record 04 made before the director, hearing examiner, or hearing panel, a transcript or recording 05 of the proceedings before the director, hearing examiner, or hearing panel, and oral 06 argument and written briefs allowed by the commission. Except as provided in (c) of 07 this section, new or additional evidence may not be received with respect to the 08 appeal. 09 (c) The commission may hold hearings and receive evidence on applications 10 for (1) stays under AS 23.30.125; (2) attorney fees and costs of appeal; (3) waiver of 11 fees by indigent appellants; or (4) dismissal of appeals for failure to prosecute or upon 12 settlement. The commission may rely on new or additional evidence presented during 13 the hearing in making its decision on the application. 14 (d) The commission may affirm, reverse, or modify a decision or order upon 15 review and issue other orders as appropriate. The commission may remand matters it 16 determines were improperly, incompletely, or otherwise insufficiently developed. The 17 commission may remand for further proceedings and appropriate action with or 18 without relinquishing the commission's jurisdiction of the appeal. The administrative 19 adjudication procedures of AS 44.62 (Administrative Procedure Act) do not apply to 20 the proceedings of the commission. 21 (e) Within 90 days after written briefing on the appeal is completed or oral 22 argument is held, whichever is later, the commission shall issue a decision in writing. 23 The decision must contain a concise statement of reasons for the decision, including 24 findings of fact, if required, and conclusions of law. The commission shall serve each 25 party and the director with a copy of the decision. Appeals may be expedited for good 26 cause by the commission. Unless reconsideration is ordered under (f) of this section, a 27 decision under this subsection is the final commission decision. 28 (f) A party or the director may request reconsideration of a decision issued 29 under (e) of this section within 30 days after the date of service shown in the 30 certificate of service of the decision. The request must state specific grounds for 31 reconsideration. Reconsideration may be granted if, in reaching the decision, the
01 commission (1) overlooked, misapplied, or failed to consider a statute, regulation, 02 court or administrative decision, or legal principle directly controlling; (2) overlooked 03 or misconceived a material fact; (3) misconceived a material question in the case; or 04 (4) applied law in the ruling that has subsequently changed. The commission may 05 issue an order for reconsideration of all or part of the decision upon request of a party 06 or the director. Reconsideration is based on the record, unless the commission allows 07 additional argument. The power to order reconsideration expires 60 days after the 08 date of service, as shown on the certificate of service, of a decision issued under (e) of 09 this section. If the commission does not issue an order for reconsideration within the 10 time allowed for ordering reconsideration, a request for reconsideration is considered 11 denied. If reconsideration is ordered, the commission shall issued a decision within 30 12 days after the close of the record on reconsideration. The commission shall serve each 13 party in the case with a copy of the decision upon reconsideration. The decision upon 14 reconsideration is the final commission decision. 15 (g) A decision of the commission becomes final on the 16 (1) 31st day after the date of service of a decision if reconsideration is 17 not requested; or 18 (2) 61st day after the date of service of a decision if reconsideration is 19 requested but an order for reconsideration is not issued; or 20 (3) date of service of the commission decision upon reconsideration 21 under (f) of this section if reconsideration is requested and an order for reconsideration 22 is issued. 23 Sec. 23.30.129. Judicial review of commission orders. (a) Notwithstanding 24 the provisions of AS 44.62.560, orders of the commission may not be appealed to the 25 superior court. Consistent with AS 22.05.010(b), final decisions of the commission 26 may be appealed to the supreme court, and other orders may be reviewed by the 27 supreme court as provided by the Alaska Rules of Appellate Procedure. 28 (b) A finding by the commission concerning the weight to be accorded a 29 witness's testimony, including medical testimony and reports, is conclusive even if the 30 evidence is conflicting or susceptible to contrary conclusions. The commission's 31 findings of fact may be reversed on appeal if not supported by substantial evidence in
01 light of the whole record. 02 * Sec. 65. AS 23.30.130 is amended to read: 03 Sec. 23.30.130. Modification of awards. (a) A party in interest or the 04 director may petition to modify a compensation order [UPON ITS OWN 05 INITIATIVE, OR UPON THE APPLICATION OF ANY PARTY IN INTEREST] on 06 the ground of a change in conditions, including, for the purposes of AS 23.30.175, a 07 change in residence, or because of a mistake in a [ITS] determination of a material 08 fact. A hearing panel [, THE BOARD] may, before one year after the date of the last 09 payment of compensation benefits under AS 23.30.180, 23.30.185, 23.30.190, 10 23.30.200, or 23.30.215, whether or not a compensation order has been issued, or 11 before one year after the rejection of a claim, act on the petition and review a 12 compensation case under the procedure prescribed with [IN] respect to [OF] claims in 13 AS 23.30.110. Under AS 23.30.110, a hearing panel [THE BOARD] may issue a 14 new compensation order that [WHICH] terminates, continues, reinstates, increases, or 15 decreases the compensation, or award compensation. 16 (b) A new order does not affect compensation previously paid, except that an 17 award increasing the compensation rate may be made effective from the date of the 18 injury, and, if part of the compensation due or to become due is unpaid, an award 19 decreasing the compensation rate may be made effective from the date of the injury, 20 and payment made earlier in excess of the decreased rate shall be deducted from the 21 unpaid compensation, in the manner the hearing panel [BOARD] determines. 22 * Sec. 66. AS 23.30.135 is amended to read: 23 Sec. 23.30.135. Procedure before the division [BOARD]. (a) The director 24 in [IN] making a decision on an investigation or inquiry or conducting a hearing, 25 [THE BOARD] is not bound by common law or statutory rules of evidence or by 26 technical or formal rules of procedure, except as provided by this chapter. The 27 director [BOARD] may make an [ITS] investigation or inquiry or conduct a [ITS] 28 hearing in the manner that [BY WHICH IT] may best ascertain the rights of the 29 parties. For purposes of investigation under AS 23.30.011, 23.30.040, 23.30.075, 30 23.30.080, 23.30.085, 23.30.090, 23.30.140, 23.30.155(i), 23.30.155(k), 31 23.30.155(m), 23.30.170, and 23.30.240, the director may subpoena witnesses,
01 administer or cause to be administered oaths, and may examine or cause to be 02 examined books, papers and records relating to the questions under 03 investigation. The superior court shall enforce the subpoenas on application by 04 the director in the manner provided in AS 44.62.590. Declarations of a deceased 05 employee concerning the injury with [IN] respect to which the investigation or inquiry 06 is being made or the hearing conducted shall be received in evidence and are, if 07 corroborated by other evidence, sufficient to establish the injury. 08 (b) All testimony given during a hearing before the director [BOARD] shall 09 be recorded, but need not be transcribed unless further review is initiated. Hearings 10 before the director [BOARD] shall be open to the public. 11 * Sec. 67. AS 23.30.140 is amended to read: 12 Sec. 23.30.140. Appointment of guardian by court. The director 13 [BOARD] may require the appointment of a guardian or other representative by a 14 competent court for any person who is mentally incompetent or a minor to receive 15 compensation payable to the person under this chapter and to exercise the powers 16 granted to or to perform the duties required of the person under this chapter. If the 17 director [BOARD] does not require the appointment of a guardian to receive the 18 compensation of a minor, appointment for this purpose is not necessary. 19 * Sec. 68. AS 23.30.145(a) is amended to read: 20 (a) Fees for legal services rendered with [IN] respect to a claim are not valid 21 unless approved by the hearing panel [BOARD, AND THE FEES MAY NOT BE 22 LESS THAN 25 PER CENT ON THE FIRST $1,000 OF COMPENSATION OR 23 PART OF THE FIRST $1,000 OF COMPENSATION, AND 10 PER CENT OF ALL 24 SUMS IN EXCESS OF $1,000 OF COMPENSATION]. When [THE BOARD 25 ADVISES THAT] a claim has been controverted, in whole or in part, [THE BOARD 26 MAY DIRECT THAT THE] fees for legal services may be paid by the employer or 27 carrier in addition to compensation awarded; the fees may be allowed only on the 28 amount of compensation controverted and awarded. When [THE BOARD ADVISES 29 THAT] a claim has not been controverted, but [FURTHER ADVISES THAT] bona 30 fide legal services have been rendered with [IN] respect to the claim, then the hearing 31 panel [BOARD] shall direct the payment of the fees out of the compensation awarded.
01 In determining the amount of fees the hearing panel [BOARD] shall take into 02 consideration the nature, length, and complexity of the services performed, 03 transportation charges, and the benefits resulting from the services to the 04 compensation beneficiaries. 05 * Sec. 69. AS 23.30.145(b) is amended to read: 06 (b) If an employer fails to file timely notice of controversy or fails to pay 07 compensation or medical and related benefits within 15 days after it becomes due or 08 otherwise resists the payment of compensation or medical and related benefits and if 09 the claimant has employed an attorney in the successful prosecution of the claim, a 10 hearing panel [THE BOARD] shall make an award to reimburse the claimant for the 11 costs in the proceedings, including [A] reasonable attorney fees [FEE]. The award is 12 in addition to the compensation or medical and related benefits ordered. 13 * Sec. 70. AS 23.30.155(a) is amended to read: 14 (a) Compensation under this chapter shall be paid periodically, promptly, and 15 directly to the person entitled to it, without an award, except where liability to pay 16 compensation is controverted by the employer. To controvert a claim, the employer 17 must file a notice, on a form prescribed by the director [BOARD], stating 18 (1) that the right of the employee to compensation is controverted; 19 (2) the name of the employee; 20 (3) the name of the employer; 21 (4) the date of the alleged injury or death; and 22 (5) the type of compensation and all grounds upon which the right to 23 compensation is controverted. 24 * Sec. 71. AS 23.30.155(b) is amended to read: 25 (b) The first installment of compensation becomes due on the 14th day after 26 the employer has knowledge of the injury or death. On this date all compensation then 27 due shall be paid. Subsequent compensation shall be paid in installments, every 14 28 days, except where a hearing panel [THE BOARD] determines that payment in 29 installments should be made monthly or at some other period. 30 * Sec. 72. AS 23.30.155(c) is amended to read: 31 (c) The insurer or adjuster shall notify the division [BOARD] and the
01 employee on a form prescribed by the director [BOARD] that the payment of 02 compensation has begun or has been increased, decreased, suspended, terminated, 03 resumed, or changed in type. An initial report shall be filed with the division 04 [BOARD] and sent to the employee within 28 days after the date of issuing the first 05 payment of compensation. If at any time 21 days or more pass and no compensation 06 payment is issued, a report notifying the division [BOARD] and the employee of the 07 termination or suspension of compensation shall be filed with the division [BOARD] 08 and sent to the employee within 28 days after the date the last compensation payment 09 was issued. A report shall also be filed with the division [BOARD] and sent to the 10 employee within 28 days after the date of issuing a payment increasing, decreasing, 11 resuming, or changing the type of compensation paid. If the division [BOARD] and 12 the employee are not notified within the 28 days prescribed by this subsection for 13 reporting, the insurer or adjuster shall pay a civil penalty of $100 for the first day plus 14 $10 for each day after the first day [THEREAFTER] that the notice was not given. 15 Total penalties under this subsection may not exceed $1,000 for a failure to file a 16 required report. Penalties assessed under this subsection are eligible for reduction 17 under (m) of this section. A penalty assessed under this subsection after penalties 18 have been reduced under (m) of this section shall be increased by 25 percent and shall 19 bear interest at the rate established under AS 45.45.010. 20 * Sec. 73. AS 23.30.155(d) is amended to read: 21 (d) If the employer controverts the right to compensation, the employer shall 22 file with the division [BOARD] and send to the employee a notice of controversion on 23 or before the 21st day after the employer has knowledge of the alleged injury or death. 24 If the employer controverts the right to compensation after payments have begun, the 25 employer shall file with the division [BOARD] and send to the employee a notice of 26 controversion within seven days after an installment of compensation payable without 27 an award is due. When payment of temporary disability benefits is controverted solely 28 on the grounds that another employer or another insurer of the same employer may be 29 responsible for all or a portion of the benefits, the most recent employer or insurer 30 who is party to the claim and who may be liable shall make the payments during the 31 pendency of the dispute. When a final determination of liability is made, any
01 reimbursement required, including interest at the statutory rate, and all costs and 02 attorney [ATTORNEYS'] fees incurred by the prevailing employer, shall be made 03 within 14 days after [OF] the determination. 04 * Sec. 74. AS 23.30.155(e) is amended to read: 05 (e) If any installment of compensation payable without an award is not paid 06 within seven days after it becomes due, as provided in (b) of this section, there shall be 07 added to the unpaid installment an amount equal to 25 percent of it. This additional 08 amount shall be paid at the same time as, and in addition to, the installment, unless 09 notice is filed under (d) of this section or unless the nonpayment is excused by a 10 hearing panel [THE BOARD] after a showing by the employer that, owing to 11 conditions over which the employer had no control, the installment could not be paid 12 within the period prescribed for the payment. 13 * Sec. 75. AS 23.30.155(f) is amended to read: 14 (f) If compensation payable under the terms of an award is not paid within 14 15 days after it becomes due, there shall be added to that unpaid compensation an amount 16 equal to 25 percent of it, which shall be paid at the same time as, but in addition to, the 17 compensation, unless review of the compensation order making the award is had as 18 provided in AS 23.30.125 and payment is stayed by an order of the commission 19 [INTERLOCUTORY INJUNCTION STAYING PAYMENTS IS ALLOWED BY 20 THE COURT]. 21 * Sec. 76. AS 23.30.155(h) is amended to read: 22 (h) The director may initiate an investigation, have a medical examination 23 performed at the division's expense, or file a petition on a disputed matter for 24 hearing [BOARD MAY UPON ITS OWN INITIATIVE] at any time in a case in 25 which payments are being made with or without an award, where right to 26 compensation is controverted, or where payments of compensation have been 27 increased, reduced, terminated, changed, or suspended, upon receipt of notice from a 28 person entitled to compensation, or from the employer, that the right to compensation 29 is controverted, or that payments of compensation have been increased, reduced, 30 terminated, changed, or suspended. The director may then [, MAKE THE 31 INVESTIGATIONS, CAUSE THE MEDICAL EXAMINATIONS TO BE MADE,
01 OR HOLD THE HEARINGS, AND] take the further action considered necessary to 02 [WHICH IT CONSIDERS WILL] properly protect the rights of all parties. 03 * Sec. 77. AS 23.30.155(i) is amended to read: 04 (i) When the director [BOARD] considers it advisable, the director [IT] may 05 require an employer to make a deposit with the Department of Revenue to secure the 06 prompt and convenient payment of the compensation, and payments from the deposit 07 upon an award shall be made upon order of the director [BOARD]. 08 * Sec. 78. AS 23.30.155(j) is amended to read: 09 (j) If an employer has made advance payments or overpayments of 10 compensation, the employer is entitled to be reimbursed by withholding up to 20 11 percent out of each unpaid installment or installments of compensation due. More 12 than 20 percent of unpaid installments of compensation due may be withheld from an 13 employee only on approval of a hearing panel [THE BOARD]. 14 * Sec. 79. AS 23.30.155(k) is amended to read: 15 (k) An injured employee [,] or, in case of death, the employee's dependents or 16 personal representative [,] shall give receipts for payment of compensation to the 17 employer paying the compensation, [IT] and the employer shall produce the receipts 18 [THEM] for inspection by the director [BOARD], whenever required. 19 * Sec. 80. AS 23.30.155(m) is amended to read: 20 (m) On or before March 1 of each year, the insurer or adjuster shall file a 21 verified annual report on a form prescribed by the director [BOARD] stating the total 22 amount of all compensation by type, the number of claims received and the percentage 23 controverted, medical, and related benefits, vocational rehabilitation expenses, legal 24 fees, including a separate total of fees paid to attorneys and fees paid for the other 25 costs of litigation, and penalties paid on all claims during the preceding calendar year. 26 If the annual report is timely and complete when received by the division [BOARD] 27 and provides accurate information about each category of payments, the director 28 [COMMISSIONER] shall review the timeliness of the insurer's or adjuster's reports 29 filed during the preceding year under (c) of this section. If, during the preceding year, 30 the insurer or adjuster filed at least 99 percent of the reports on time, the penalties 31 assessed under (c) of this section shall be waived. If, during the preceding year, the
01 insurer or adjuster filed at least 97 percent of the reports on time, 75 percent of the 02 penalties assessed under (c) of this section shall be waived. If, during the preceding 03 year, the insurer or adjuster filed 95 percent of the reports on time, 50 percent of the 04 penalties assessed under (c) of this section shall be waived. If, during the preceding 05 year, the insurer's or adjuster's reports have not been filed on time at least 95 percent 06 of the time, none of the penalties assessed under (c) of this section shall be waived. 07 The penalties that are not waived are due and payable when the insurer or adjuster 08 receives notification from the director [COMMISSIONER] regarding the timeliness 09 of the reports. If the annual report is not filed by March 1 of each year, the insurer or 10 adjuster shall pay a civil penalty of $100 for the first day the annual report is late [,] 11 and $10 for each additional day the report is late. If the annual report is incomplete 12 when filed, the insurer or adjuster shall pay a civil penalty of $1,000. 13 * Sec. 81. AS 23.30.155(o) is amended to read: 14 (o) The director [BOARD] shall promptly notify the division of insurance if a 15 hearing panel [THE BOARD] determines that the employer's insurer has frivolously 16 or unfairly controverted compensation due under this chapter. After receiving notice 17 from the director [BOARD], the division of insurance shall determine if the insurer 18 has committed an unfair claim settlement practice under AS 21.36.125. 19 * Sec. 82. AS 23.30.170(a) is amended to read: 20 (a) In case of default by the employer in the payment of compensation due 21 under an award of compensation for a period of 30 days after the compensation is due, 22 the person to whom the compensation is payable may, within one year after the 23 default, file a petition with the division [APPLY TO THE BOARD MAKING THE 24 COMPENSATION ORDER] for a supplementary order declaring the amount of the 25 default. After completion of any investigation the director considers necessary, 26 and upon [,] notice [,] and hearing, as provided in AS 23.30.110, a hearing examiner 27 may [THE BOARD SHALL] make a supplementary order declaring the amount of the 28 default. The order shall be filed in the same manner as the compensation order. 29 * Sec. 83. AS 23.30.170(b) is amended to read: 30 (b) If the payment in default is an installment of the award, a hearing 31 examiner has [THE BOARD MAY, IN ITS] discretion to [,] declare the whole of the
01 award as the amount in default. The petitioner [APPLICANT] may file a certified 02 copy of the supplementary order with the clerk of the superior court. The 03 supplementary order is final. The court shall, upon the filing of the copy, enter 04 judgment for the amount declared in default by the supplementary order if it is in 05 accordance with law. Any time after a supplementary order is filed [BY THE 06 BOARD], the attorney general, when requested to do so by the director 07 [COMMISSIONER], shall take appropriate action to ensure [ASSURE] collection of 08 the defaulted payments. 09 * Sec. 84. AS 23.30.175(a) is amended to read: 10 (a) The weekly rate of compensation for disability or death may not exceed 11 the maximum compensation rate, may not be less than 22 percent of the maximum 12 compensation rate, and initially may not be less than $110. However, if a hearing 13 panel [THE BOARD] determines that the employee's spendable weekly wages are 14 less than $110 a week as computed under AS 23.30.220, or less than 22 percent of the 15 maximum compensation rate a week in the case of an employee who has furnished 16 documentary proof of the employee's wages, it shall issue an order adjusting the 17 weekly rate of compensation to a rate equal to the employee's spendable weekly 18 wages. If the employer can verify that the employee's spendable weekly wages are 19 less than 22 percent of the maximum compensation rate, the employer may adjust the 20 weekly rate of compensation to a rate equal to the employee's spendable weekly wages 21 without an order of a hearing panel [THE BOARD]. If the employee's spendable 22 weekly wages are greater than 22 percent of the maximum compensation rate, but 80 23 percent of the employee's spendable weekly wages is less than 22 percent of the 24 maximum compensation rate, the employee's weekly rate of compensation shall be 22 25 percent of the maximum compensation rate. Prior payments made in excess of the 26 adjusted rate shall be deducted from the unpaid compensation in the manner a hearing 27 panel [THE BOARD] determines. In any case, the employer shall pay timely 28 compensation. In this subsection, "maximum compensation rate" means 120 percent 29 of the average weekly wage, calculated under (d) of this section, applicable on the date 30 of injury of the employee. 31 * Sec. 85. AS 23.30.175(b) is amended to read:
01 (b) The following rules apply to benefits payable to recipients not residing in 02 the state at the time compensation benefits are payable: 03 (1) the weekly rate of compensation shall be calculated by multiplying 04 the recipient's weekly compensation rate calculated under AS 23.30.180, 23.30.185, 05 23.30.190, 23.30.200, or 23.30.215 [,] by the ratio of the cost of living of the area in 06 which the recipient resides to the cost of living in this state; 07 (2) the calculation required by (1) of this subsection does not apply if 08 the recipient is absent from the state for medical or rehabilitation services not 09 reasonably available in the state; 10 (3) if the gross weekly earnings of the recipient and the resulting 11 compensation rate are determined under AS 23.30.220(a)(6), (7), or (10), the 12 calculation required by this subsection applies only to the portion of the recipient's 13 weekly compensation rate attributable to wages earned in the state; 14 (4) application of this subsection may not reduce the weekly 15 compensation rate to less than $154 a week, except as provided in (a) of this section; 16 (5) application of (1) - (4) of this subsection may not result in 17 raising a recipient's weekly compensation rate to an amount that exceeds the 18 weekly compensation rate that the recipient would have received if the recipient 19 had been residing in the state. 20 * Sec. 86. AS 23.30.175(c) is amended to read: 21 (c) The department [BOARD] shall provide by regulation for the 22 determination and comparison of living costs for this state and the other areas in which 23 recipients reside and for the annual redetermination and comparison of these costs. 24 * Sec. 87. AS 23.30.180(a) is amended to read: 25 (a) In case of total disability adjudged to be permanent, 80 percent of the 26 injured employee's spendable weekly wages shall be paid to the employee during the 27 continuance of the total disability. If a permanent partial disability award has been 28 made before a permanent total disability determination, permanent total disability 29 benefits must be reduced by the amount of the permanent partial disability award, 30 adjusted for inflation, in a manner determined by a hearing panel [THE BOARD]. 31 Loss of both hands, [OR] both arms, [OR] both feet, [OR] both legs, or both eyes, or
01 of any two of them, in the absence of conclusive proof to the contrary, constitutes 02 permanent total disability. In all other cases, permanent total disability is determined 03 in accordance with the facts. In making this determination the market for the 04 employee's services shall be the 05 (1) area of residence; 06 (2) area of last employment; 07 (3) [THE] state of residence; and 08 (4) [THE] State of Alaska. 09 * Sec. 88. AS 23.30.190(b) is amended to read: 10 (b) All determinations of the existence and degree of permanent impairment 11 shall be made strictly and solely under the whole person determination as set out in the 12 American Medical Association Guides to the Evaluation of Permanent Impairment, 13 except that an impairment rating may not be rounded to the next five percent. The 14 department [BOARD] shall adopt a supplementary recognized schedule for injuries 15 that cannot be rated by use of the American Medical Association Guides. 16 * Sec. 89. AS 23.30.190(d) is amended to read: 17 (d) When a new edition of the American Medical Association Guides 18 described in (b) of this section is published, the director [BOARD] shall, not later 19 than 90 days after the last day of the month in which the new edition is published, hold 20 an open meeting under AS 44.62.310 to select the date on which the new edition will 21 be used to make all determinations required under (b) of this section. The date selected 22 by the director [BOARD] for using the new edition may not be later than 90 days 23 after the last day of the month in which the new edition is published. After the 24 meeting, the director [BOARD] shall issue a public notice announcing the date 25 selected. The requirements of AS 44.62.010 - 44.62.300 do not apply to the selection 26 or announcement of the date under this subsection. 27 * Sec. 90. AS 23.30.200(b) is amended to read: 28 (b) The wage-earning capacity of an injured employee is determined by the 29 actual spendable weekly wage of the employee if the actual spendable weekly wage 30 fairly and reasonably represents the wage-earning capacity of the employee. A 31 hearing panel [THE BOARD] may, in the interest of justice, fix the wage-earning
01 capacity that is reasonable, having due regard for [TO] the nature of the injury, the 02 degree of physical impairment, the usual employment, and other factors or 03 circumstances in the case that may affect the capacity of the employee to earn wages 04 in a disabled condition, including the effect of disability as it may naturally extend into 05 the future. 06 * Sec. 91. AS 23.30.205(e) is amended to read: 07 (e) The second injury fund may not be bound as to any question of law or fact 08 by reason of an award or an adjudication to which it was not a party or in relation to 09 which the director [COMMISSIONER] was not notified at least three weeks before 10 the award or adjudication, that the fund might be subject to liability for the injury or 11 death. 12 * Sec. 92. AS 23.30.205(f) is amended to read: 13 (f) An employer or the employer's carrier shall notify the director 14 [COMMISSIONER OF LABOR AND WORKFORCE DEVELOPMENT] of any 15 possible claim against the second injury fund as soon as practicable, but in no event 16 later than 100 weeks after the employer or the employer's carrier have knowledge of 17 the injury or death. 18 * Sec. 93. AS 23.30.215(d) is amended to read: 19 (d) Compensation under this chapter to aliens not residents, or about to 20 become nonresidents, of the United States or Canada is the same in amount as 21 provided for residents, except that dependents in a foreign country are limited to 22 widow or widower and child or children, or, if there is no widow or widower and child 23 or children, to surviving father or mother whom the employee has supported, either 24 wholly or in part, for a period of one year before the date of injury. A hearing 25 examiner, upon petition of the director, the employer, or [THE BOARD, AT ITS 26 OPTION, OR UPON THE APPLICATION OF] the insurance carrier, may commute 27 all future installments of compensation to be paid to an alien dependent who is not a 28 resident of the United States or Canada by paying or causing to be paid to the alien 29 dependent one-half of the commuted amount of the future installments of 30 compensation as determined by the hearing examiner [BOARD]. 31 * Sec. 94. AS 23.30.220(a) is amended to read:
01 (a) Computation of compensation under this chapter shall be on the basis of an 02 employee's spendable weekly wage at the time of injury. An employee's spendable 03 weekly wage is the employee's gross weekly earnings minus payroll tax deductions. 04 An employee's gross weekly earnings shall be calculated as follows: 05 (1) if, at the time of injury, the employee's earnings are calculated by 06 the week, the weekly amount is the employee's gross weekly earnings; 07 (2) if, at the time of injury, the employee's earnings are calculated by 08 the month, the employee's gross weekly earnings are the monthly earnings multiplied 09 by 12 and divided by 52; 10 (3) if, at the time of injury, the employee's earnings are calculated by 11 the year, the employee's gross weekly earnings are the yearly earnings divided by 52; 12 (4) if, at the time of injury, the 13 (A) employee's earnings are calculated by the day, by the hour, 14 or by the output of the employee, the employee's gross weekly earnings are the 15 employee's earnings most favorable to the employee computed by dividing by 16 13 the employee's earnings, including overtime or premium pay, earned during 17 any period of 13 consecutive calendar weeks within the 52 weeks immediately 18 preceding the injury; 19 (B) employee has been employed for less than 13 calendar 20 weeks immediately preceding the injury, then, notwithstanding (1) - (3) of this 21 subsection and (A) of this paragraph, the employee's gross weekly earnings are 22 computed by determining the amount that the employee would have earned, 23 including overtime or premium pay, had the employee been employed by the 24 employer for 13 calendar weeks immediately preceding the injury and dividing 25 this sum by 13; 26 (5) if, at the time of injury, the employee's earnings have not been 27 fixed or cannot be ascertained, the employee's earnings for the purpose of calculating 28 compensation are the usual wage for similar services when the services are rendered 29 by paid employees; 30 (6) if, at the time of injury, the employment is exclusively seasonal or 31 temporary, then, notwithstanding (1) - (5) of this subsection, the gross weekly earnings
01 are 1/50 of the total wages that the employee has earned from all occupations during 02 the 12 calendar months immediately preceding the injury; 03 (7) when the employee is working under concurrent contracts with two 04 or more employers, the employee's earnings from all employers are [IS] considered as 05 if earned from the employer liable for compensation; 06 (8) if an employee when injured is a minor, an apprentice, or a trainee 07 in a formal training program, as determined by a hearing panel [THE BOARD], 08 whose wages, under normal conditions, would increase during the period of disability, 09 the projected increase may be considered by the hearing panel [BOARD] in 10 computing the gross weekly earnings of the employee; 11 (9) if the employee is injured while performing duties as a volunteer 12 ambulance attendant, volunteer police officer, or volunteer fire fighter, then, 13 notwithstanding (1) - (6) of this subsection, the gross weekly earnings for calculating 14 compensation shall be the minimum gross weekly earnings paid a full-time ambulance 15 attendant, police officer, or fire fighter employed in the political subdivision where the 16 injury occurred, or, if the political subdivision has no full-time ambulance attendants, 17 police officers, or fire fighters, at a reasonable figure previously set by the political 18 subdivision to make this determination, but, in no case, may the gross weekly earnings 19 for calculating compensation be less than the minimum wage computed on the basis of 20 40 hours work a [PER] week; 21 (10) if an employee is entitled to compensation under AS 23.30.180 22 and a hearing panel [THE BOARD] determines that calculation of the employee's 23 gross weekly earnings under (1) - (7) of this subsection does not fairly reflect the 24 employee's earnings during the period of disability, the hearing panel [BOARD] shall 25 determine gross weekly earnings by considering the nature of the employee's work, 26 work history, and resulting disability, but compensation calculated under this 27 paragraph may not exceed the employee's gross weekly earnings at the time of injury. 28 * Sec. 95. AS 23.30.240 is amended to read: 29 Sec. 23.30.240. Officers of corporations, municipal corporations, and 30 nonprofit corporations as employees. An executive officer elected or appointed and 31 empowered in accordance with the charter and bylaws of a corporation, other than an
01 official of a municipal corporation or a charitable, religious, educational, or other 02 nonprofit corporation, is an employee of the corporation under this chapter. However, 03 an executive officer of a corporation may waive coverage under this chapter, subject 04 to the approval of the director [COMMISSIONER OF LABOR AND WORKFORCE 05 DEVELOPMENT], notwithstanding AS 23.30.245(b). Notwithstanding any other 06 provision of this chapter, an executive officer of a municipal corporation or of a 07 charitable, religious, educational, or other nonprofit corporation may be brought 08 within the coverage of its insurance contract by the corporation by specifically 09 including the officer in the contract of insurance. The election to bring an executive 10 officer within the coverage continues in force for the period the contract of insurance 11 is in effect. During that period, an executive officer brought within the coverage of 12 the insurance contract is an employee of the corporation under this chapter. 13 * Sec. 96. AS 23.30.250(b) is amended to read: 14 (b) If a hearing panel [THE BOARD], after a hearing, finds that a person has 15 obtained compensation, medical treatment, or another benefit provided under this 16 chapter by knowingly making a false or misleading statement or representation for the 17 purpose of obtaining that benefit, the hearing panel [BOARD] shall order that person 18 to make full reimbursement of the cost of all benefits obtained. Upon entry of an order 19 authorized under this subsection, the hearing panel [BOARD] shall also order that 20 person to pay all reasonable costs and attorney fees incurred by the employer and the 21 employer's carrier in obtaining an order under this section and in defending any claim 22 made for benefits under this chapter. If a person fails to comply with an order of a 23 hearing panel [THE BOARD] requiring reimbursement of compensation and 24 payment of costs and attorney fees, the employer may declare the person in default 25 and proceed to collect any sum due as provided under AS 23.30.170(b) and (c). 26 * Sec. 97. AS 23.30.260 is amended to read: 27 Sec. 23.30.260. Penalty for receiving unapproved fees and soliciting. A 28 person is guilty of a misdemeanor [,] and, upon conviction, is punishable for each 29 offense by a fine of not more than $1,000 [,] or by imprisonment for not more than one 30 year, or by both, if the person 31 (1) receives a fee, other consideration, or a gratuity on account of any
01 services rendered for representation or advice with [IN] respect to a claim, unless 02 the consideration or gratuity is approved by the hearing panel, the commission, 03 [BOARD] or the court; or 04 (2) makes it a business to solicit employment for a lawyer or for the 05 person with [ONESELF IN] respect to a claim or award for compensation. 06 * Sec. 98. AS 23.30.260 is amended by adding a new subsection to read: 07 (b) Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is 08 not required if the fee does not exceed $300 and is a one-time-only charge to an 09 employee by an attorney licensed in this state who performed legal services with 10 respect to the employee's claim but did not enter an appearance. 11 * Sec. 99. AS 23.30.395(3) is amended to read: 12 (3) "board" means the [ALASKA] Workers' Compensation Hearings 13 Board; 14 * Sec. 100. AS 23.30.395(28) is amended to read: 15 (28) "self-insurer" means an employer who, instead of insuring 16 liability under this chapter as it provides, elects to pay directly the compensation 17 provided for, and who has furnished to the division [BOARD] satisfactory proof of 18 the employer's financial ability to make the direct payments; 19 * Sec. 101. AS 23.30.395 is amended by adding new paragraphs to read: 20 (35) "commission" means the Workers' Compensation Appeals 21 Commission; 22 (36) "director" means the director of the division of workers' 23 compensation; 24 (37) "division" means the division of workers' compensation; 25 (38) "hearing examiner" means a hearing examiner employed under 26 AS 23.30.112 to preside over hearings of hearing panels in workers' compensation 27 claims and petitions and conduct other hearings under this chapter; 28 (39) "hearing panel" means a panel formed to hear workers' 29 compensation claims and petitions under this chapter, and that consists of a member of 30 the board representative of industry, a member of the board representative of labor, 31 and a hearing examiner employed under AS 23.30.112.
01 * Sec. 102. AS 39.25.120(c)(14) is amended to read: 02 (14) the rehabilitation administrator of the division of workers' 03 compensation [WORKERS' COMPENSATION BOARD]; 04 * Sec. 103. AS 39.25.120(c) is amended by adding a new paragraph to read: 05 (20) the reemployment benefits administrator of the division of 06 workers' compensation in the Department of Labor and Workforce Development. 07 * Sec. 104. AS 39.50.200(b)(31) is amended to read: 08 (31) Workers' Compensation Appeals Commission (AS 23.30.007) 09 and Workers' Compensation Hearings Board (AS 23.30.006) [(AS 23.30.005)]; 10 * Sec. 105. AS 44.62.330(a)(15) is amended to read: 11 (15) division of workers' compensation and its director [ALASKA 12 WORKERS' COMPENSATION BOARD], where procedures are not otherwise 13 expressly provided by AS 23.30 ( [THE] Alaska Workers' Compensation Act); 14 * Sec. 106. AS 21.39.155(c) is repealed. 15 * Sec. 107. The uncodified law of the State of Alaska is amended by adding a new section 16 to read: 17 APPLICABILITY. The amendment to AS 23.30.175(b) made by sec. 85 of this Act 18 applies to an injury occurring on or after the effective date of sec. 85 of this Act. 19 * Sec. 108. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 TRANSITION: TERMS OF BOARD OF GOVERNORS MEMBERS. (a) 22 Notwithstanding sec. 5 of this Act, the director of insurance in the Department of Community 23 and Economic Development shall designate members of the board of governors for the Alaska 24 Insurance Guaranty Association to serve staggered initial terms in the manner provided in 25 AS 39.05.055. 26 (b) Terms of members of the board of governors for the Alaska Insurance Guaranty 27 Association serving on July 1, 2004, expire on July 2, 2004, but a member of the board of 28 governors on July 1, 2004, may continue to serve until a successor is appointed if the member 29 meets the standards set out in sec. 5 of this Act for the position in which the member was 30 serving on July 1, 2004. Members of the board of governors for the Alaska Insurance 31 Guaranty Association serving on July 1, 2004, may apply for reappointment to the board by
01 submitting a request to the director of insurance. 02 * Sec. 109. The uncodified law of the State of Alaska is amended by adding a new section 03 to read: 04 TRANSITION: CONTINUANCE OF ALASKA WORKERS' COMPENSATION 05 BOARD; PENDING CASES. (a) Notwithstanding the repeal and reenactment of 06 AS 23.30.005 by sec. 9 of this Act, the Alaska Workers' Compensation Board, established 07 under AS 23.30.005 as it existed on the day before the effective date of sec. 9 of this Act, 08 continues in existence for 45 days after the effective date of sec. 9 of this Act for the limited 09 purpose described in (b) of this section. Members serving on the Alaska Workers' 10 Compensation Board on the day before the effective date of sec. 9 of this Act continue to 11 serve as members of that board for the 45 days after the effective date of sec. 9 of this Act. 12 Appointments may not be made to that board on or after the effective date of sec. 9 of this 13 Act. 14 (b) A case heard by the board before the effective date of sec. 9 of this Act and 15 awaiting a decision by the board on the day before the effective date of sec. 9 of this Act shall 16 be decided by the board, and a decision or order shall be issued, not later than the 45th day 17 after the effective date of sec. 9 of this Act, under the applicable statutes and regulations in 18 effect on the day before the effective date of sec. 9 of this Act. 19 (c) In this section, "board" means the Alaska Workers' Compensation Board 20 established under AS 23.30.005 as that section existed on the day before the effective date of 21 sec. 9 of this Act. 22 * Sec. 110. The uncodified law of the State of Alaska is amended by adding a new section 23 to read: 24 TRANSITION: INITIAL TERMS OF MEMBERS OF WORKERS' 25 COMPENSATION APPEALS COMMISSION AND THE WORKERS' COMPENSATION 26 HEARINGS BOARD. (a) Notwithstanding AS 23.30.007(b), enacted by sec. 10 of this Act, 27 the terms of the initially appointed members of the Workers' Compensation Appeals 28 Commission, established by AS 23.30.007 as enacted by sec. 10 of this Act, shall be set by 29 the governor to achieve staggered terms in the manner provided in AS 39.05.055. 30 (b) Notwithstanding AS 23.30.006(a) and (b), enacted by sec. 10 of this Act, members 31 of the former Alaska Workers' Compensation Board whose terms have not expired as of the
01 effective date of this section become members of the Workers' Compensation Hearings 02 Board, established by AS 23.30.006 as enacted by sec. 10 of this Act, on the effective date of 03 this section, and may complete their original appointed terms as members of the Workers' 04 Compensation Hearings Board. Notwithstanding AS 23.30.006(b), enacted by sec. 10 of this 05 Act, the terms of the additional members initially appointed to the Workers' Compensation 06 Hearings Board shall be set by the governor so that approximately one-third of the members 07 serve terms of one year, one-third serve terms of two years, and one-third serve terms of three 08 years, taking into account the appointed terms of the members of the former Alaska Workers' 09 Compensation Board who became members of the Workers' Compensation Hearings Board 10 under this section. 11 * Sec. 111. The uncodified law of the State of Alaska is amended by adding a new section 12 to read: 13 TRANSITION: STAFF. (a) In order to ensure the smooth transfer of functions in the 14 shortest possible time, for a period of one year after the effective date of this section, the 15 director may, with the approval of the commissioner of labor and workforce development and 16 the chair of the commission, temporarily assign division employees to the commission and the 17 commission may reimburse the division for the temporarily assigned employees. Division 18 employees temporarily assigned to the commission shall continue in the same position and 19 rate of pay for the duration of the temporary assignment as the employees held at the division. 20 (b) Notwithstanding AS 23.30.112(a)(1), added by sec. 58 of this Act, a workers' 21 compensation hearing officer employed by the division on the day before the effective date of 22 sec. 58 of this Act who applies for and is otherwise eligible for employment as a hearing 23 examiner, is exempt for a period not exceeding 18 months after the effective date of sec. 58 of 24 this Act, from the requirement to be licensed to practice law in this state. 25 (c) In this section, 26 (1) "commission" means the Workers' Compensation Appeals Commission 27 established by AS 23.30.007, enacted by sec. 10 of this Act; 28 (2) "director" means the director of the division of workers' compensation in 29 the Department of Labor and Workforce Development; 30 (3) "division" means the division of workers' compensation in the Department 31 of Labor and Workforce Development.
01 * Sec. 112. The uncodified law of the State of Alaska is amended by adding a new section 02 to read: 03 TRANSITIONAL PROVISIONS. (a) Litigation, investigations, and other 04 proceedings pending under a law amended or repealed by this Act, or in connection with 05 functions transferred by this Act, continue in effect and may be continued and completed, 06 notwithstanding a transfer or amendment or repeal provided for in this Act. 07 (b) Certificates, decisions, and orders issued under authority of a law amended or 08 repealed by this Act remain in effect for the term issued, or until revoked, vacated, or 09 otherwise modified under the provisions of this Act. Contracts, rights, liabilities, and 10 obligations created by or under a law amended or repealed by this Act, and in effect on the 11 day before the effective date of this section, remain in effect notwithstanding this Act's taking 12 effect. Records, equipment, appropriations, and other property of agencies of the state whose 13 functions are transferred under this Act shall be transferred to implement the provisions of 14 this Act. 15 (c) Regulations adopted under AS 23.30 and in effect on the day before the effective 16 date of this Act continue in effect, and may be applied by the Alaska Workers' Compensation 17 Board, during the 45 days after the effective date of sec. 9 of this Act as provided in sec. 108 18 of this Act. 19 * Sec. 113. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 TRANSITION: REGULATIONS. (a) The Department of Labor and Workforce 22 Development and the director of insurance in the Department of Community and Economic 23 Development each may proceed to adopt regulations necessary to implement their respective 24 provisions of this Act. The regulations take effect under AS 44.62 (Administrative Procedure 25 Act), but not before the effective date of the statutory changes. 26 (b) In order to provide for the procedures and other administrative matters necessary 27 to ensure the on-going implementation of the state's workers' compensation laws to meet the 28 urgent needs of injured workers, and thus ensure the preservation of the public peace, health, 29 safety, or general welfare, the Workers' Compensation Appeals Commission established by 30 AS 23.30.007, enacted by sec. 10 of this Act, may adopt under AS 23.30.008, enacted by sec. 31 10 of this Act, as emergency regulations, the regulations necessary to implement the changes
01 made by this Act. 02 * Sec. 114. Section 113(a) of this Act takes effect immediately under AS 01.10.070(c). 03 * Sec. 115. Except as provided in sec. 114 of this Act, this Act takes effect July 1, 2004.