SSHB 51: "An Act relating to modifying the qualifications required for workers' compensation self-insurance and permitting employers in the same trade or industry to form an employer association for self-insured workers' compensation coverage; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 51 01 "An Act relating to modifying the qualifications required for workers' compensation 02 self-insurance and permitting employers in the same trade or industry to form an 03 employer association for self-insured workers' compensation coverage; and providing 04 for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 23.30.090 is repealed and reenacted to read: 07 Sec. 23.30.090. Self-insurance certificates. (a) The board may issue a self- 08 insurance certificate to an employer or an association of employers if the employer or 09 association of employers files an application for a certificate and demonstrates that 10 (1) the employer has at least 100 employees or, in the case of an 11 association of employers, the members of the association have at least 100 employees 12 in the aggregate; 13 (2) the employer has a net worth of at least $5,000,000 or, in the case 14 of an association of employers, the members of the association have a net worth of at
01 least $5,000,000 in the aggregate; 02 (3) the employer or the association of employers has paid the annual 03 service fee assessed under AS 23.05.067; 04 (4) the employer or each member of the association of employers has a 05 workplace safety rate reduction program in effect under AS 21.89.015; 06 (5) the employer or the association of employers has obtained excess 07 insurance coverage in amounts and with coverage required by the board; 08 (6) the association of employers has filed with the board an indemnity 09 agreement jointly and severally binding each member of the association to secure the 10 payment of all compensation due to its members' employees under this chapter. 11 (b) Before issuing a certificate of self-insurance or at other times designated 12 by the board, the board may require 13 (1) an employer or association of employers to provide copies of 14 financial statements or federal income tax returns for the preceding three years for the 15 employer, or in the case of an association of employers, for its members; and 16 (2) a self-insured association of employers that has been granted a 17 certificate of self-insurance to provide copies of its financial statements or federal 18 income tax returns for the preceding three years. 19 (c) Financial information provided under (b) of this section is confidential and 20 is not a public record. 21 (d) A certificate of self-insurance remains in force until revoked by the board. 22 The board may, on at least 10 days' notice and a hearing, revoke a self-insurance 23 certificate on satisfactory proof that an employer or association of employers is no 24 longer entitled to it. After revocation, the board may grant a new certificate to an 25 employer or association of employers on petition and satisfactory proof that the 26 employer or association of employers meets the requirements for a self-insurance 27 certificate under this section. 28 (e) An employer or association of employers authorized to self-insure under 29 this section shall provide claims facilities through its own staffed adjusting facilities 30 located within the state, or independent, licensed resident adjusters with power to 31 effect settlement in the state.
01 (f) A self-insured association of employers that has a certificate of self- 02 insurance shall notify the board in writing within 30 days after a member withdraws 03 from the association or a new member joins the association. In the case of a new 04 member, the notice must include information that the new member is qualified under 05 (i) of this section and the financial information for the new member required under (b) 06 of this section. 07 (g) The association of employers permitted under this section may act on 08 behalf of or for the benefit of its members to provide for its members' workers' 09 compensation obligations under this title. An association of employers shall have the 10 rights and obligations of an employer under this title. 11 (h) The board may adopt regulations to implement this section. 12 (i) In this section, "association of employers" means a group of five or more 13 employers who are merchants, craftsmen, or businesses in a similar trade or industry 14 and who are members of an Alaska trade association for that trade or industry 15 organized under the laws of the state to promote the common interests of the trade or 16 industry and the trade association has been in existence for at least five years. 17 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).