00                    CS FOR SENATE BILL NO. 130(FIN) am                                                                  
01 "An Act relating to a special deposit for workers' compensation and employers' liability                                
02 insurers; relating to assigned risk pools; relating to workers' compensation insurers;                                  
03 stating the intent of the legislature, and setting out limitations, concerning the                                      
04 interpretation, construction, and implementation of workers' compensation laws;                                         
05 relating to the Alaska Workers' Compensation Board; assigning certain Alaska                                            
06 Workers' Compensation Board functions to the division of workers' compensation in the                                   
07 Department of Labor and Workforce Development and to that department, and                                               
08 authorizing the board to delegate administrative and enforcement duties to the division;                                
09 providing for workers' compensation hearing officers in workers' compensation                                           
10 proceedings; establishing a Workers' Compensation Appeals Commission; relating to                                       
11 workers' compensation medical benefits and to charges for and payment of fees for the                                   
12 medical benefits; relating to agreements that discharge workers' compensation liability;                                

01 relating to workers' compensation awards; relating to reemployment benefits and job                                     
02 dislocation benefits; relating to coordination of workers' compensation and certain                                     
03 disability benefits; relating to division of workers' compensation records; relating to                                 
04 release of treatment records; relating to an employer's failure to insure and keep                                      
05 insured or provide security; providing for appeals from compensation orders; relating                                   
06 to workers' compensation proceedings; providing for supreme court jurisdiction of                                       
07 appeals from the Workers' Compensation Appeals Commission; providing for a                                              
08 maximum amount for the cost-of-living adjustment for workers' compensation benefits;                                    
09 relating to attorney fees with respect to workers' compensation; providing for the                                      
10 department to enter into contracts with nonprofit organizations to provide information                                  
11 services and legal representation to injured employees; providing for administrative                                    
12 penalties for employers uninsured or without adequate security for workers'                                             
13 compensation; relating to fraudulent acts or false or misleading statements in workers'                                 
14 compensation and penalties for the acts or statements; providing for members of a                                       
15 limited liability company to be included as an employee for purposes of workers'                                        
16 compensation; establishing a workers' compensation benefits guaranty fund; making                                       
17 conforming amendments; providing for a study and report by the medical services                                         
18 review committee; establishing the Task Force on Workers' Compensation; and                                             
19 providing for an effective date."                                                                                       
20 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
21    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
22 to read:                                                                                                                
23       LEGISLATIVE INTENT.  It is the intent of the legislature by secs. 2 - 4 of this Act                               
24            (1)  to reform the workers' compensation system in Alaska to ensure the                                      

01 continued payment of benefits in the event of an insurer insolvency; and                                                
02            (2)  to reduce the overall costs of workers' compensation premiums to                                        
03 employers.                                                                                                            
04    * Sec. 2.  AS 21.09.090 is amended by adding new subsections to read:                                              
05            (e)  In addition to and separate from the deposit required under (b) of this                                 
06       section, an insurer that is authorized to transact workers' compensation and employer's                           
07       liability insurance as defined in AS 21.12.070(a)(3) shall deposit in this state, through                         
08       the director, for the protection of persons in this state covered by workers'                                     
09       compensation insurance issued by the insurer, an amount not less than the greater of                              
10                 (1)  $100,000; or                                                                                       
11                 (2)  an amount equal to the sum of the following less any credit for                                    
12       reinsurance that the insurer may take under (f) of this section:                                                  
13                      (A)  the aggregate of the present value at four percent interest of                                
14            the total determined and estimated future loss and loss expense payment upon                                 
15            each claim incurred under a policy written in this state more than three years                               
16            before the date of computation; and                                                                          
17                      (B)  for each of the three years before the date of computation,                                   
18            65 percent of the earned premium for the year less each loss and loss expense                                
19            payment made upon a claim incurred in the corresponding year, except that the                                
20            amount for any year may not be less than the present value at four percent                                   
21            interest of the total determined and estimated future loss and loss expense                                  
22            payment upon each claim incurred under a policy written in this state that year.                             
23            (f)  In calculating the deposit amount required under (e)(2) of this section, an                             
24       insurer may take a credit for reinsurance if the reinsurer has deposited in trust in this                         
25       state, through the director, an amount at least equal to the credit to be taken, and not                          
26       less than the aggregate of all credits taken by each insurer under this subsection.                               
27    * Sec. 3.  AS 21.24.130 is amended by adding a new subsection to read:                                             
28            (f)  If an insurer is found to be insolvent by a proceeding under AS 21.78 or by                             
29       a court of competent jurisdiction in another state, the director shall take control of the                        
30       insurer's deposit made under AS 21.09.090(e).  The deposit assets shall be released, at                           
31       the discretion of the director, to the Alaska Insurance Guaranty Association                                      

01       (AS 21.80) to reimburse for a valid loss and loss expense claim payment made by the                               
02       association that is within the purpose of the deposit.  The director shall pay the                                
03       remaining deposit assets to the receiver, conservator, rehabilitator, or liquidator of the                        
04       insurer, or to another properly designated official who succeeds to the management                                
05       and control of the insurer's assets, after the director determines that all loss and loss                         
06       expense liabilities have been paid that were incurred on the insurer's policies written in                        
07       this state for which the deposit was required.                                                                    
08    * Sec. 4.  AS 21.39.155(a) is amended to read:                                                                     
09            (a)  The director may require insurers, except a reciprocal insurer formed [BY                               
10       AND INSURING ONLY A GROUP OF MUNICIPALITIES OR NONPROFIT                                                          
11       PUBLIC UTILITIES] under AS 21.75 [OR A RECIPROCAL INSURER FORMED                                                  
12       UNDER AS 21.75 TO PROVIDE MARINE INSURANCE], as a condition of writing                                            
13       a line of insurance dealing with medical malpractice or workers' compensation, to                                 
14       participate in an assigned risk pool if the director finds that mandatory carrier                                 
15       participation is in the public interest.                                                                          
16    * Sec. 5.  AS 23.30 is amended by adding a new section to read:                                                    
17            Sec. 23.30.001.  Intent of the legislature and construction of chapter.  It is                             
18       the intent of the legislature that                                                                                
19                 (1)  this chapter be interpreted so as to ensure the quick, efficient, fair,                            
20       and predictable delivery of indemnity and medical benefits to injured workers at a                                
21       reasonable cost to the employers who are subject to the provisions of this chapter;                               
22                 (2)  workers' compensation cases shall be decided on their merits                                       
23       except where otherwise provided by statute;                                                                       
24                 (3)  this chapter may not be construed by the courts in favor of a party;                               
25                 (4)  hearings in workers' compensation cases shall be impartial and fair                                
26       to all parties and that all parties shall be afforded due process and an opportunity to be                        
27       heard and for their arguments and evidence to be fairly considered.                                               
28    * Sec. 6.  AS 23.30.005(a) is amended to read:                                                                     
29            (a)  The Alaska Workers' Compensation Board consists of a southern panel of                                  
30       three members sitting for the first judicial district, a northern panel of three members                          
31       sitting for the second and fourth judicial districts, four southcentral panels of three                           

01       members each sitting for the third judicial district, and one panel of three members                              
02       that may sit in any judicial district.  Each panel must include the commissioner of                               
03       labor and workforce development or a hearing officer designated to represent [THE                             
04       DESIGNATED REPRESENTATIVE OF] the commissioner, a representative of                                               
05       industry, and a representative of labor.  The latter two members of each panel shall be                           
06       appointed by the governor and are subject to confirmation by a majority of the                                    
07       members of the legislature in joint session.  The board shall by regulation provide                           
08       procedures to avoid conflicts and the appearance of impropriety in hearings.                                  
09    * Sec. 7.  AS 23.30.005(b) is amended to read:                                                                     
10            (b)  The commissioner shall act as chair [CHAIRMAN] and executive officer                                
11       of the board and chair [CHAIRMAN] of each panel.  The commissioner may                                    
12       designate a representative to act for the commissioner as chair and executive                                 
13       officer of the board.  The commissioner may designate hearing officers to serve as                            
14       chairs of panels for hearing claims  [IF THE COMMISSIONER DESIGNATES A                                        
15       REPRESENTATIVE TO ACT FOR THE COMMISSIONER, THE                                                                   
16       REPRESENTATIVE SHALL SERVE IN THAT CAPACITY ON THE BOARD                                                          
17       AND ON EACH PANEL].                                                                                               
18    * Sec. 8.  AS 23.30.005 is amended by adding new subsections to read:                                              
19            (m)  The department may, in its discretion, contract with a nonprofit                                        
20       organization to provide information services and legal representation to employees in                             
21       proceedings under this chapter.                                                                                   
22            (n)  The board may by regulation delegate authority to the director to assist the                            
23       board in administering and enforcing this chapter.                                                                
24    * Sec. 9.  AS 23.30 is amended by adding new sections to read:                                                     
25            Sec. 23.30.007.  Workers' Compensation Appeals Commission.  (a)  There                                     
26       is established in the Department of Labor and Workforce Development the Workers'                                  
27       Compensation Appeals Commission.  The commission has jurisdiction to hear appeals                                 
28       from final decisions and orders of the board under this chapter.  Jurisdiction of the                             
29       commission is limited to administrative appeals arising under this chapter.                                       
30            (b)  The commission consists of five members appointed by the governor and                                   
31       confirmed by a majority of the members of the legislature in joint session.  The                                  

01       members shall be appointed as follows:                                                                            
02                 (1)  a member appointed as chair who meets the requirements of (c)(2)                                   
03       of this section;                                                                                                  
04                 (2)  two members who, because of their employment or affiliations,                                      
05       may be classified as a representative of employees covered by this chapter;                                       
06                 (3)  two members who, because of their employment or affiliations,                                      
07       may be classified as a representative of employers covered by this chapter.                                       
08            (c)  To be eligible for appointment under this section                                                       
09                 (1)  the member must                                                                                    
10                      (A)  be a citizen of the United States;                                                            
11                      (B)  be a resident of the state for the five years preceding the                                   
12            appointment; and                                                                                             
13                      (C)  have not been convicted of either a                                                           
14                           (i)  felony; or                                                                               
15                           (ii)  misdemeanor related to workers' compensation;                                           
16                 (2)  the chair must                                                                                     
17                      (A)  meet the criteria specified in (1) of this subsection;                                        
18                      (B)  be licensed to practice law in this state and be a member in                                  
19            good standing with the Alaska Bar Association; and                                                           
20                      (C)  have engaged in the active practice of law for at least five                                  
21            years with experience in workers' compensation in this state.                                                
22            (d)  A member may act and receive compensation under this section from the                                   
23       date of appointment until confirmation or rejection by the legislature.                                           
24            (e)  The term of service on the commission is five years.  A member may be                                   
25       reappointed so long as the reappointment complies with the provisions of this section.                            
26            (f)  The chair of the commission is in the exempt service under AS 39.25.110                                 
27       and shall receive a monthly salary that is not less than Step A nor more than Step F of                           
28       Range 27 of the salary schedule in AS 39.27.011(a) for Anchorage, Alaska.                                         
29            (g)  A vacancy arising in the commission shall be filled by appointment by the                               
30       governor and confirmed by a majority of the members of the legislature in joint                                   
31       session.  Except as provided in AS 39.05.080(4), an appointee selected to fill a                                  

01       vacancy shall hold office for the unexpired term of the member whose vacancy is                                   
02       filled.  A vacancy in the commission does not impair the authority of a quorum of                                 
03       members to exercise all the powers and perform all the duties of the commission.                                  
04            (h)  An appeal to the commission shall be heard and decided by a three-                                      
05       member panel of the commission.  An appeal panel shall consist of the chair of the                                
06       commission and two members of the commission assigned by the chair, one member                                    
07       classified as representing employees, and one member classified as representing                                   
08       employers.  At other meetings to conduct commission business, the number of                                       
09       commission members classified as representing employees must equal the number of                                  
10       commission members classified as representing employers.  The chair of the                                        
11       commission and two representative members of the commission, one classified as                                    
12       representing employees and one classified as representing employers, constitutes a                                
13       quorum.                                                                                                           
14            (i)  A member of the commission may be removed from office by the governor                                   
15       for good cause.  To be removed for cause, a member of the commission shall be given                               
16       a copy of the charges and afforded an opportunity to be heard in person or by counsel                             
17       in the member's own defense upon not less than 10 days' notice.  If the member is                                 
18       removed for cause, the governor shall file with the lieutenant governor a complete                                
19       statement of all charges made against the member, the governor's findings on the                                  
20       charges, and the record of any proceedings.  In this subsection, "good cause" includes                            
21                 (1)  misconduct in office or violation of AS 39.52;                                                     
22                 (2)  conviction of a felony;                                                                            
23                 (3)  conviction of a misdemeanor related to workers' compensation;                                      
24                 (4)  inability to serve, neglect of duty, incompetence, unjustified failure                             
25       to handle the caseload assigned, or similar nonfeasance of office; and                                            
26                 (5)  failure to continue to meet the requirements of this section relating                              
27       to qualification for office.                                                                                      
28            (j)  Representative members are entitled to compensation in the amount of                                    
29       $200 a day for each day spent in actual hearing of appeals or on authorized official                              
30       business incidental to their duties, and to transportation and per diem as provided by                            
31       law.  Compensation shall be paid pro rata for each portion of a day spent in actual                               

01       hearing of appeals or on authorized official business.                                                            
02            (k)  A member of the commission may not hear an appeal under this chapter if                                 
03                 (1)  a party is an employee or was, in the past seven years, an employee                                
04       of the commission member or of a business that employs the commission member;                                     
05       this paragraph does not apply to the chair of the commission when the State of Alaska                             
06       is or was the employer of a party;                                                                                
07                 (2)  a party is a member or was, in the past seven years, a member of                                   
08       the same union or employee association as the commission member;                                                  
09                 (3)  a party has a contractual relationship with the commission member,                                 
10       a business that employs the commission member, or a union or employee association                                 
11       of which the commission member is a member;                                                                       
12                 (4)  the commission member is unable to be fair, impartial, and                                         
13       unbiased toward the appeal participants; or                                                                       
14                 (5)  participation in the appeal is a violation of AS 39.52.                                            
15            (l)  If the chair of the commission is unable to hear an appeal for reasons of                               
16       absence or illness in excess of 10 days, or for reasons set out in (k) of this section, the                       
17       commissioner of the department shall appoint a person who meets the qualifications of                             
18       this section to serve as chair to hear the appeal as chair pro tem.  The person shall                             
19       receive the compensation provided in (j) of this section.  Appointment of a chair pro                             
20       tem does not require legislative confirmation.                                                                    
21            (m)  Each member of the commission, before entering upon the duties of                                       
22       office, shall take and subscribe to the oath prescribed for principal officers of the state.                      
23            (n)  The offices of the commission shall be physically separate from the offices                             
24       of the division.                                                                                                  
25            Sec. 23.30.008.  Powers and duties of the commission.  (a)  The commission                                 
26       shall be the exclusive and final authority for the hearing and determination of all                               
27       questions of law and fact arising under this chapter in those matters that have been                              
28       appealed to the commission, except for an appeal to the Alaska Supreme Court.  The                                
29       commission does not have jurisdiction in any case that does not arise under this                                  
30       chapter or in any criminal case.  On any matter taken to the commission, the decision                             
31       of the commission is final and conclusive, unless appealed to the Alaska Supreme                                  

01       Court, and shall stand in lieu of the order of the board from which the appeal was                                
02       taken.  Unless reversed by the Alaska Supreme Court, decisions of the commission                                  
03       have the force of legal precedent.                                                                                
04            (b)  The commission, in its administrative capacity, shall maintain, index, and                              
05       make available for public inspection the final administrative decisions and orders of                             
06       the commission and of the board.  The chair of the commission may review and                                      
07       circulate among the other members of the relevant commission appeal panel the drafts                              
08       of the panel's formal decisions and decisions upon reconsideration.  The drafts are                               
09       confidential documents and are not subject to disclosure.                                                         
10            (c)  The chair of the commission shall draft and propose, and the commission                                 
11       in its administrative capacity may adopt, regulations implementing the commission's                               
12       authority and duties under this chapter, including rules of procedure and evidence for                            
13       proceedings before the commission under this chapter.  The provisions of AS 44.62                                 
14       (Administrative Procedure Act) apply to the adoption of regulations by the                                        
15       commission.                                                                                                       
16            (d)  In an appeal, the commission shall award a successful party reasonable                                  
17       costs and, if the party is represented by an attorney, attorney fees that the commission                          
18       determines to be fully compensatory and reasonable.  However, the commission may                                  
19       not make an award of attorney fees against an injured worker unless the commission                                
20       finds that the worker's position on appeal was frivolous or unreasonable or the appeal                            
21       was taken in bad faith.                                                                                           
22            (e)  The commission, in its administrative capacity, may adopt and alter an                                  
23       official seal and do all things necessary, convenient, or desirable to carry out the                              
24       powers expressly granted or necessarily implied in this chapter.                                                  
25            Sec. 23.30.009.  Powers and duties of the chair of the commission.  (a)  The                               
26       chair of the commission shall exercise general supervision over the office of the                                 
27       commission and over appeals, and shall direct the administrative functions of the                                 
28       commission.  The chair of the commission shall serve as the executive officer of the                              
29       commission and shall have authority in all administrative matters relating to the                                 
30       members.  The chair may                                                                                           
31                 (1)  employ and supervise commission staff and appoint a commission                                     

01       clerk;                                                                                                            
02                 (2)  establish and implement a time management system for the                                           
03       commission members and staff and manage the calendar of appeals;                                                  
04                 (3)  assign the work of the commission members and staff so that                                        
05       appeals are resolved as expeditiously and competently as possible;                                                
06                 (4)  advise and cooperate with the board to develop appropriate                                         
07       procedures for maintenance and transfer of hearing files and the preservation and                                 
08       transfer of records on appeal; and                                                                                
09                 (5)  prepare an annual budget of the commission.                                                        
10            (b)  The chair of the commission shall preside over hearings and arguments on                                
11       appeals.  The chair of the commission shall ensure that all functions of the commission                           
12       are performed with due regard for the rights of all parties and consistent with the                               
13       orderly and prompt resolution of appeals.  The chair of the commission shall rule on                              
14       questions of procedure and advise the representative members of the commission on                                 
15       matters of law.                                                                                                   
16            (c)  The chair of the commission shall, not later than March 15 of each year,                                
17       make available to the public and file with the lieutenant governor, a report regarding                            
18       the commission, including data regarding time periods between initial receipt and final                           
19       decisions on appeals.                                                                                             
20            (d)  The chair of the commission shall devote full time to the duties of the chair                           
21       of the commission and may not engage in any other employment or business.  The                                    
22       chair of the commission may not hold any other office or position under the United                                
23       States, this state, any municipality or political subdivision of this state, or any tribal                        
24       government or corporation.  The chair of the commission may not hold office or                                    
25       position in a partisan political organization or party.                                                           
26    * Sec. 10.  AS 23.30.012 is amended to read:                                                                       
27            Sec. 23.30.012.  Agreements in regard to claims.  (a)  At any time after                                 
28       death, or after 30 days subsequent to the date of the injury, the employer and the                                
29       employee or the beneficiary or beneficiaries, as the case may be, have the right to                               
30       reach an agreement in regard to a claim for injury or death under this chapter [IN                                
31       ACCORDANCE WITH THE APPLICABLE SCHEDULE IN THIS CHAPTER], but                                                     

01       a memorandum of the agreement in a form prescribed by the director [BOARD] shall                              
02       be filed with the division [BOARD].  Otherwise, the agreement is void for any                                 
03       purpose.    Except as provided in (b) of this section, an agreement filed with the                            
04       division discharges the liability of the employer for the compensation,                                       
05       notwithstanding the provisions of AS 23.30.130, 23.30.160, and 23.30.245, and is                              
06       enforceable as a compensation order.                                                                          
07            (b)  If the claimant or beneficiary is not represented by an attorney                                    
08       licensed to practice in this state or the beneficiary is a minor or incompetent, the                          
09       agreement shall be reviewed by a panel of the board.  If approved by the board, the                           
10       agreement is enforceable the same as an order or award of the board and discharges                                
11       the liability of the employer for the compensation notwithstanding the provisions of                              
12       AS 23.30.130, 23.30.160, and 23.30.245.  The agreement shall be approved by the                                   
13       board only when the terms conform to the provisions of this chapter, and, if it involves                      
14       or is likely to involve permanent disability, the board may require an impartial medical                          
15       examination and a hearing in order to determine whether or not to approve the                                     
16       agreement.  A  [THE BOARD MAY APPROVE] lump-sum settlement may be                                         
17       approved [SETTLEMENTS] when it appears to be to the best interest of the                                      
18       employee or beneficiary or beneficiaries.                                                                         
19    * Sec. 11.  AS 23.30.041(a) is amended to read:                                                                    
20            (a)  The director [BOARD] shall select and employ a reemployment benefits                                
21       administrator.  The director [BOARD] may authorize the administrator to select and                            
22       employ additional staff. The administrator is in the partially exempt service under                               
23       AS 39.25.120.                                                                                                     
24    * Sec. 12.  AS 23.30.041(b) is amended to read:                                                                    
25            (b)  The administrator shall                                                                                 
26                 (1)  enforce regulations adopted by the board to implement this section;                                
27                 (2)  recommend regulations for adoption by the board that establish                                     
28       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 requesting, waiving,                                   
11            beginning, completing, or terminating a reemployment benefits program                                
12            including                                                                                                    
13                           (i)  reasons for  denial, waiver, suspension, or                                          
14                 termination;                                                                                        
15                           (ii)  dates of completion and [A] return to work; and                                 
16                           (iii)  other information required by the director                                         
17                 [DATE];                                                                                                 
18                      (D)  the cost of reemployment benefits;                                                            
19                      (E)  status reports of all individuals who successfully                                        
20            completed a reemployment plan that includes                                                              
21                           (i)  the plan's occupational goal and whether the                                         
22                 individual obtained work after completion in the planned or                                         
23                 another occupation; and                                                                             
24                           (ii)  the individual's employment status six months,                                      
25                 one year, and two years after reemployment plan completion;                                         
26                 (6)  maintain a list of rehabilitation specialists who meet the                                         
27       qualifications established under this section;                                                                    
28                 (7)  promote awareness among physicians, adjusters, injured workers,                                    
29       employers, employees, attorneys, training providers, and rehabilitation specialists of                            
30       the reemployment program established in this subsection.                                                          
31    * Sec. 13.  AS 23.30.041(c) is repealed and reenacted to read:                                                     

01            (c)  An employee and an employer may stipulate to the employee's eligibility                                 
02       for reemployment benefits at any time.  If an employee suffers a compensable injury                               
03       and, as a result of the injury, the employee is totally unable, for 45 consecutive days,                          
04       to return to the employee's employment at the time of injury, the administrator shall                             
05       notify the employee of the employee's rights under this section within 14 days after the                          
06       45th day.  If the employee is totally unable to return to the employee's employment for                           
07       60 consecutive days as a result of the injury, the employee or employer may request an                            
08       eligibility evaluation.  The administrator may approve the request if the employee's                              
09       injury may permanently preclude the employee's return to the employee's occupation                                
10       at the time of the injury.  If the employee is totally unable to return to the employee's                         
11       employment at the time of the injury for 90 consecutive days as a result of the injury,                           
12       the administrator shall, without a request, order an eligibility evaluation unless a                              
13       stipulation of eligibility was submitted.  If the administrator approves a request or                             
14       orders an evaluation, the administrator shall, on a rotating and geographic basis, select                         
15       a rehabilitation specialist from the list maintained under (b)(6) of this section to                              
16       perform the eligibility evaluation.  If the person that employs a rehabilitation specialist                       
17       selected by the administrator to perform an eligibility evaluation under this subsection                          
18       is performing any other work on the same workers' compensation claim involving the                                
19       injured employee, the administrator shall select a different rehabilitation specialist.                           
20    * Sec. 14.  AS 23.30.041(f) is amended to read:                                                                    
21            (f)  An employee is not eligible for reemployment benefits if                                                
22                 (1)  the employer offers employment within the employee's predicted                                     
23       post-injury physical capacities at a wage equivalent to at least the state minimum wage                           
24       under AS 23.10.065 or 75 percent of the worker's gross hourly wages at the time of                                
25       injury, whichever is greater, and the employment prepares the employee to be                                      
26       employable in other jobs that exist in the labor market;                                                          
27                 (2)  the employee previously declined the development of a                                          
28       reemployment benefits plan under (g) of this section, received a job dislocation                              
29       benefit under (g)(2) of this section, and returned to work in the same or similar                             
30       occupation in terms of physical demands required of the employee at the time of                               
31       the previous injury;                                                                                          

01                 (3)  the employee has been previously rehabilitated in a former                                     
02       worker's compensation claim and returned to work in the same or similar occupation                                
03       in terms of physical demands required of the employee at the time of the previous                                 
04       injury; or                                                                                                        
05                 (4) [(3)]  at the time of medical stability, no permanent impairment is                         
06       identified or expected.                                                                                           
07    * Sec. 15.  AS 23.30.041(g) is amended to read:                                                                    
08            (g)  Within 30 [15] days after the employee receives the administrator's                                 
09       notification of eligibility for benefits, an employee [WHO DESIRES TO USE THESE                                   
10       BENEFITS] shall give written notice under oath, on a form provided by the                                     
11       division, to the administrator and the employer of the employee's election to                             
12       either use the reemployment benefits or to accept a job dislocation benefit under                             
13       (2) of this subsection.  The following apply to an election under this subsection:                            
14                 (1)  an employee who elects to use the reemployment benefits also                                   
15       shall notify the employer of the employee's selection of a rehabilitation specialist who                      
16       shall provide a complete reemployment benefits plan; failure [.  FAILURE] to give                             
17       notice of selection of a rehabilitation specialist required by this paragraph                             
18       [SUBSECTION] constitutes noncooperation under (n) of this section; if  [. IF] the                             
19       employer disagrees with the employee's choice of rehabilitation specialist to develop                             
20       the plan and the disagreement cannot be resolved, then the administrator shall assign a                           
21       rehabilitation specialist; the [. THE] employer and employee each have one right of                           
22       refusal of a rehabilitation specialist;                                                                       
23                 (2)  an employee who elects to accept a job dislocation benefit in                                  
24       place of reemployment benefits and who has been given a permanent partial                                     
25       impairment rating by a physician shall be paid                                                                
26                      (A)  $5,000 if the employee's permanent partial impairment                                     
27            rating is greater than zero and less than 15 percent;                                                    
28                      (B)  $8,000 if the employee's permanent partial impairment                                     
29            rating is 15 percent or greater but less than 30 percent; or                                             
30                      (C)  $13,500 if the employee's permanent partial                                               
31            impairment rating is 30 percent or greater;                                                              

01                 (3)  the form provided by the division for election must specify that                               
02       the employee understands the scope of the benefits and rights being waived by                                 
03       the election; the administrator shall serve a copy of the executed election form on                           
04       the parties within 10 days after receiving the form from the employee; the                                    
05       election and waiver of unchosen benefits is effective upon service to the parties; a                          
06       waiver and election effective under this subsection discharges the employer's                                 
07       liability for the benefits or rights under this section that were not elected; a                              
08       waiver may not be modified under AS 23.30.130; the administrator may not                                      
09       accept an election to accept a job dislocation benefit by an employee who has not                             
10       signed a form that conspicuously notes the benefit being waived.                                              
11    * Sec. 16.  AS 23.30.041(j) is amended to read:                                                                    
12            (j)  The employee, rehabilitation specialist, and [THE] employer shall sign the                              
13       reemployment benefits plan.  If the employer and employee fail to agree on a                                      
14       reemployment plan, either party may submit a reemployment plan for approval to the                                
15       administrator. The [; THE] administrator shall approve or deny a plan within 14 days                          
16       after the plan is submitted.  Within [; WITHIN] 10 days after [OF] the decision,                          
17       either party may seek review of the decision by requesting a hearing under                                        
18       AS 23.30.110.  The [; THE] board shall uphold the decision of the administrator                               
19       unless evidence is submitted supporting an allegation of abuse of discretion on the part                          
20       of the administrator.  The [; THE] board shall render a decision within 30 days after                         
21       completion of the hearing.                                                                                        
22    * Sec. 17.  AS 23.30.041(k) is amended to read:                                                                    
23            (k)  Benefits related to the reemployment plan may not extend past two years                                 
24       from date of plan approval or acceptance, whichever date occurs first, at which time                              
25       the benefits expire.  If an employee reaches medical stability before completion of the                           
26       plan, temporary total disability benefits shall cease, and permanent impairment                               
27       benefits shall then be paid at the employee's temporary total disability rate.  If the                            
28       employee's permanent impairment benefits are exhausted before the completion or                                   
29       termination of the reemployment process [PLAN], the employer shall provide                                    
30       compensation equal to 70 percent of the employee's spendable weekly wages, but not                                
31       to exceed 105 percent of the average weekly wage, until the completion or termination                             

01       of the process [PLAN], except that any compensation paid under this subsection is                             
02       reduced by wages earned by the employee while participating in the process [PLAN]                             
03       to the extent that the wages earned, when combined with the compensation paid under                               
04       this subsection, exceed the employee's temporary total disability rate.  If permanent                             
05       partial disability or permanent partial impairment benefits have been paid in a lump                          
06       sum before the employee requested or was found eligible for reemployment benefits,                                
07       payment of benefits under this subsection is suspended until permanent partial                                    
08       disability or permanent partial impairment benefits would have ceased, had those                              
09       benefits been paid at the employee's temporary total disability rate, notwithstanding                             
10       the provisions of AS 23.30.155(j).  A permanent impairment benefit remaining unpaid                               
11       upon the completion or termination of the plan shall be paid to the employee in a                                 
12       single lump sum.  An employee may not be considered permanently totally disabled so                               
13       long as the employee is involved in the rehabilitation process under this chapter.  The                           
14       fees of the rehabilitation specialist or rehabilitation professional shall be paid by the                         
15       employer and may not be included in determining the cost of the reemployment plan.                                
16    * Sec. 18.  AS 23.30.041(n) is amended to read:                                                                    
17            (n)  After the employee has elected to participate in reemployment benefits, if                              
18       the employer believes the employee has not cooperated, the employer may terminate                                 
19       reemployment benefits on the date of noncooperation.  Noncooperation means                                        
20                 (1)  unreasonable failure to                                                                            
21                      (A)  keep appointments;                                                                            
22                      (B)  maintain passing grades;                                                                      
23                      (C)  attend designated programs;                                                                   
24                      (D)  maintain contact with the rehabilitation specialist;                                          
25                      (E)  cooperate with the rehabilitation specialist in developing a                                  
26            reemployment plan and participating in activities relating to reemployability on                             
27            a full-time basis;                                                                                           
28                      (F)  comply with the employee's responsibilities outlined in the                                   
29            reemployment plan; or                                                                                        
30                      (G)  participate in any planned reemployment activity as                                           
31            determined by the administrator; or                                                                          

01                 (2)  failure to give written notice to the employer of the employee's                                   
02       choice of rehabilitation specialists within 30 [15] days after receiving notice of                            
03       eligibility for benefits from the administrator as required by (g) of this section.                               
04    * Sec. 19.  AS 23.30.041(p) is amended to read:                                                                    
05            (p)  When the United States Department of Labor publishes a new edition,                                     
06       revision, or replacement for the "Selected Characteristics of Occupations Defined in                              
07       the Revised Dictionary of Occupational Titles" referred to in (e) of this section, the                            
08       director [BOARD] shall, not later than 90 days after the last day of the month in                             
09       which the new edition, revision, or replacement standard is published, hold an open                               
10       meeting under AS 44.62.310 to select the proposed date on which the new edition,                              
11       revision, or replacement standard will be implemented to make all eligibility                                     
12       determinations required under (e) of this section.  The date selected by the                                      
13       department [BOARD] for implementing the new edition, revision, or replacement                                 
14       standard may not be later than 90 days after the last day of the month in which the new                           
15       edition, revision, or replacement standard is published.  After the meeting, the                                  
16       director [BOARD] shall issue a public notice announcing the date selected by the                          
17       department.  The requirements of AS 44.62.010 - 44.62.300 do not apply to the                                 
18       selection or announcement of the date under this subsection.                                                      
19    * Sec. 20.  AS 23.30.041(q) is amended to read:                                                                    
20            (q)  Notwithstanding AS 23.30.012, after medical stability has been determined                               
21       and a physician has predicted that the employee may have a permanent impairment                                   
22       that may cause the employee to have permanent physical capacities that are less than                              
23       the physical demands of the employee's job at the time of injury, an employee may                                 
24       waive any benefits or rights under this section, including an eligibility evaluation and                          
25       benefits related to a reemployment plan.  To waive any benefits or rights under this                              
26       section, an employee must file a statement under oath with the division [BOARD] to                            
27       notify the parties of the waiver and to specify the scope of benefits or rights that the                          
28       employee seeks to waive. The statement must be on a form prescribed or approved by                                
29       the director [BOARD].  The division [BOARD] shall serve the notice of waiver on                           
30       all parties to the claim within 10 days after filing. The waiver is effective upon service                        
31       to the party.  A waiver effective under this subsection discharges the liability of the                           

01       employer for the benefits or rights contained in this section.  The waiver may not be                             
02       modified under AS 23.30.130.                                                                                      
03    * Sec. 21.  AS 23.30.080(d) is amended to read:                                                                    
04            (d)  If an employer fails to insure or provide security as required by                                       
05       AS 23.30.075, the board may issue a stop order at the request of the division                                 
06       prohibiting the use of employee labor by the employer until the employer insures or                               
07       provides security as required by AS 23.30.075.  The failure of an employer to file                                
08       evidence of compliance as required by AS 23.30.085 creates a rebuttable presumption                               
09       that the employer has failed to insure or provide security as required by AS 23.30.075.                           
10       If an employer fails to comply with a stop order issued under this section, the board                             
11       shall assess a civil penalty of $1,000 a [PER] day.  The employer may not obtain a                            
12       public contract with the state or a political subdivision of the state for three years                            
13       following the violation of the stop order.                                                                        
14    * Sec. 22.  AS 23.30.080 is amended by adding new subsections to read:                                             
15            (e)  If a representative of the department investigates an employer's failure to                             
16       file the evidence of compliance required by AS 23.30.085 and, after investigation,                                
17       there is substantial evidence that the employer failed to insure or provide security as                           
18       required by AS 23.30.075, the representative shall inform the employer.  The                                      
19       representative may request the director to issue a stop order prohibiting the use of                              
20       employee labor by the employer until the employer insures or provides security as                                 
21       required by AS 23.30.075.  The director may issue a stop order, without a hearing,                                
22       based on the representative's investigation.  The director shall dissolve a stop order                            
23       issued under this subsection upon receipt of substantial evidence that the employer is                            
24       insured or has provided security as required by AS 23.30.075(a).  If an employer fails                            
25       to comply with a stop order issued under this subsection, the division may petition the                           
26       board to assess a civil penalty.  The board may assess a civil penalty of $1,000 a day.                           
27       An employer who is assessed a penalty under this subsection may not obtain a public                               
28       contract with the state or a political subdivision of the state for the three years                               
29       following violation of the stop order.                                                                            
30            (f)  If an employer fails to insure or provide security as required by                                       
31       AS 23.30.075, the division may petition the board to assess a civil penalty of up to                              

01       $1,000 for each employee for each day an employee is employed while the employer                                  
02       failed to insure or provide the security required by AS 23.30.075.  The failure of an                             
03       employer to file evidence of compliance as required by AS 23.30.085 creates a                                     
04       rebuttable presumption that the employer failed to insure or provide security as                                  
05       required by AS 23.30.075.                                                                                         
06            (g)  If an employer fails to pay a civil penalty order issued under (d), (e), or (f)                         
07       of this section within seven days after the date of service of the order upon the                                 
08       employer, the director may declare the employer in default.  The director shall file a                            
09       certified copy of the penalty order and declaration of default with the clerk of the                              
10       superior court.  The court shall, upon the filing of the copy of the order and                                    
11       declaration, enter judgment for the amount declared in default if it is in accordance                             
12       with law.  Anytime after a declaration of default, the attorney general shall, when                               
13       requested to do so by the director, take appropriate action to ensure collection of the                           
14       defaulted payment.  Review of the judgment may be had as provided under the Alaska                                
15       Rules of Civil Procedure.  Final proceedings to execute the judgment may be had by                                
16       writ of execution.                                                                                                
17    * Sec. 23.  AS 23.30 is amended by adding a new section to read:                                                   
18            Sec. 23.30.082.  Workers' compensation benefits guaranty fund.  (a) The                                    
19       workers' compensation benefits guaranty fund is established in the general fund to                                
20       carry out the purposes of this section.  The fund is composed of civil penalty payments                           
21       made by employers under AS 23.30.080, income earned on investment of the money                                    
22       in the fund, money deposited in the fund by the department, and appropriations to the                             
23       fund.  Money appropriated to the fund does not lapse.  Amounts in the fund may be                                 
24       appropriated for claims against the fund, for expenses directly related to fund                                   
25       operations and claims, and for legal expenses.                                                                    
26            (b)  Every three months, the Department of Revenue shall provide the division                                
27       with a statement of the activities of, balances in, interest earned on, and interest                              
28       returned to the fund.                                                                                             
29            (c)  Subject to the provisions of this section, an employee employed by an                                   
30       employer who fails to meet the requirements of AS 23.30.075 and who fails to pay                                  
31       compensation and benefits due to the employee under this chapter, may file a claim for                            

01       payment by the fund.  In order to be eligible for payment, the claim form must be filed                           
02       within the same time, and in the same manner, as a workers' compensation claim.  The                              
03       fund may assert the same defenses as an insured employer under this chapter.                                      
04            (d)  If the fund pays benefits to an employee under this section, the fund shall                             
05       be subrogated to all of the rights of the employee to the amount paid, and the                                    
06       employee shall assign all right, title, and interest in that portion of the employee's                            
07       workers' compensation claim and any recovery under AS 23.30.015 to the fund.                                      
08       Money collected by the division on the claim or recovery shall be deposited in the                                
09       fund.                                                                                                             
10            (e)  If the money deposited in the fund is insufficient at a given time to satisfy                           
11       a duly authorized claim against the fund, the fund shall, when sufficient money has                               
12       been deposited in the fund and appropriated, satisfy unpaid claims in the order in                                
13       which the claims were originally filed, without interest.                                                         
14            (f)  The division may contract under AS 36.30 (State Procurement Code) with                                  
15       a person for the person to adjust claims against the fund.  The contract may cover one                            
16       or more claims.                                                                                                   
17            (g)  In this section, "fund" means the workers' compensation benefits guaranty                               
18       fund.                                                                                                             
19    * Sec. 24.  AS 23.30.095(c) is amended to read:                                                                    
20            (c)  A claim for medical or surgical treatment, or treatment requiring                                       
21       continuing and multiple treatments of a similar nature is not valid and enforceable                               
22       against the employer unless, within 14 days following treatment, the physician or                                 
23       health care provider giving the treatment or the employee receiving it furnishes to the                           
24       employer and the board notice of the injury and treatment, preferably on a form                                   
25       prescribed by the board.  The board shall, however, excuse the failure to furnish notice                          
26       within 14 days when it finds it to be in the interest of justice to do so, and it may, upon                       
27       application by a party in interest, make an award for the reasonable value of the                                 
28       medical or surgical treatment so obtained by the employee.  When a claim is made for                              
29       a course of treatment requiring continuing and multiple treatments of a similar nature,                           
30       in addition to the notice, the physician or health care provider shall furnish a written                          
31       treatment plan if the course of treatment will require more frequent outpatient visits                            

01       than the standard treatment frequency for the nature and degree of the injury and the                             
02       type of treatments.  The treatment plan shall be furnished to the employee and the                                
03       employer within 14 days after treatment begins.  The treatment plan must include                                  
04       objectives, modalities, frequency of treatments, and reasons for the frequency of                                 
05       treatments.  If the treatment plan is not furnished as required under this subsection,                            
06       neither the employer nor the employee may be required to pay for treatments that                                  
07       exceed the frequency standard.  The board shall adopt regulations establishing                                    
08       standards for frequency of treatment.  Notwithstanding (a) of this section, a claim                           
09       for palliative care or treatment provided after the employee's conditions                                     
10       medically stable is not valid and enforceable against the employer unless the                                 
11       employee's attending physician certifies that the palliative care or treatment is                             
12       required to enable the employee to continue in the employee's employment at the                               
13       time of treatment or to enable the employee to continue to participate in an                                  
14       agreed upon or approved reemployment plan.  Palliative care or treatment is also                              
15       subject to the requirements of this subsection if the palliative care or treatment                            
16       involves continuing and multiple treatments of a similar nature.  Limitations                                 
17       described in this subsection do not apply if the physician certifies that the                                 
18       treatment is needed to treat chronic debilitating pain.                                                       
19    * Sec. 25.  AS 23.30.095(j) is amended to read:                                                                    
20            (j)  The commissioner shall [BOARD MAY] appoint a medical services                                       
21       review committee, or contract with an existing organization in the state or another                               
22       state, to assist and advise the department and the board in matters involving the                             
23       appropriateness, necessity, and cost of medical and related services provided under                               
24       this chapter.                                                                                                     
25    * Sec. 26.  AS 23.30.095 is amended by adding new subsections to read:                                             
26            (n)  A generic drug product must be used when dispensing a drug product to an                                
27       employee under this chapter unless the attending physician provides justification in                              
28       writing explaining the medical necessity for the name-brand drug product.  The                                    
29       department, by regulation, shall establish a preferred drug list and a procedure for                              
30       establishing medical necessity to depart from the list and to use a name-brand drug                               
31       product.  In this subsection, "generic drug product" has the meaning given the term                               

01       "equivalent drug product" in AS 08.80.480.                                                                        
02            (o)  For purposes of this chapter, the medical treatment or service that the                                 
03       nature of the injury or the process of recovery requires under (a) of this section means                          
04       treatment or service that is within the recommended guidelines set out in the American                            
05       College of Occupational and Environmental Medicine's Occupational Medicine                                        
06       Practice Guidelines in effect at the time the treatment or service is provided.  The                              
07       American College of Occupational and Environmental Medicine's Occupational                                        
08       Medicine Practice Guidelines shall be presumed correct on the issue of the nature,                                
09       extent, and scope of medical treatment or services.  For an injury not covered by the                             
10       American College of Occupational and Environmental Medicine's Occupational                                        
11       Medicine Practice Guidelines, the treatment or service shall be in accordance with                                
12       standards based on other scientific, evidence-based medical treatment guidelines                                  
13       generally recognized by the national medical community and adopted by the board by                                
14       regulation, and those standards shall also be presumed correct on the issue of the                                
15       nature, extent, and scope of medical treatment or services.  Treatment may not be                                 
16       denied based on American College of Occupational and Environmental Medicine's                                     
17       Occupational Medicine Practice Guidelines if the treatment for the injury is not                                  
18       specifically addressed by the American College of Occupational and Environmental                                  
19       Medicine's Occupational Medicine Practice Guidelines.                                                             
20            (p)  The presumptions established under (o) of this section may be rebutted by                               
21       an employee's physician's written certification explaining                                                        
22                 (1)  the nature, extent, and scope of provided medical treatment or                                     
23       service that is at variance with the applicable guidelines or standards; and                                      
24                 (2)  the basis for the physician's conclusion that the provided medical                                 
25       treatment or service at variance was reasonably required by the nature of the injury or                           
26       process of recovery.                                                                                              
27    * Sec. 27.  AS 23.30 is amended by adding a new section to article 2 to read:                                      
28            Sec. 23.30.097.  Fees for medical treatment and services; payment of bills.                                
29       (a)  All fees and other charges for medical treatment or service are subject to                                   
30       regulation by the board consistent with this section.  A fee or other charge for medical                          
31       treatment or service may not exceed the lesser of                                                                 

01                 (1)  the usual, customary, and reasonable fees for the treatment or                                     
02       service in the community in which it is rendered, not to exceed the fees in the fee                               
03       schedule specified by the board in its published bulletin in effect on December 15,                               
04       2003; or                                                                                                          
05                 (2)  the payment made by the employer as negotiated by the provider                                     
06       and the employer under (c) of this section.                                                                       
07            (b)  An employer, or group of employers, may establish a list of preferred                                   
08       physicians and treatment service providers to provide medical, surgical, and other                                
09       attendance or treatment services to the employer's employees under this chapter;                                  
10       however,                                                                                                          
11                 (1)  the employee's right to chose the employee's attending physician                                   
12       under AS 23.30.095(a) is not impaired;                                                                            
13                 (2)  when given to the employee, the employer's preferred physician list                                
14       must clearly state that the list is voluntary, that the employee's choice is not restricted                       
15       to the list, that the employee's rights under this chapter are not impaired by choosing                           
16       an attending physician from the list, and that, if the employee chooses an attending                              
17       physician from the list, the employee may, in the manner provided in AS 23.30.095,                                
18       make one change of attending physician, from the list or otherwise; and                                           
19                 (3)  establishment of a list of preferred physicians does not affect the                                
20       employer's choice of physician for an employer medical examination under                                          
21       AS 23.30.095.                                                                                                     
22            (c)  An employer or group of employers may negotiate with physicians and                                     
23       other treatment service providers under this chapter to obtain reduced fees and service                           
24       charges and may take the fees and charges into account when forming a list of                                     
25       preferred physicians and providers.  In no event may an employer or group of                                      
26       employers attempt to influence the treatment, medical decisions, or permanent                                     
27       impairment ratings by physicians in the course of the negotiations regarding a                                    
28       preferred physician and provider fee list.                                                                        
29            (d)  An employer shall pay an employee's bills for medical treatment under this                              
30       chapter, excluding prescription charges or transportation for medical treatment, within                           
31       30 days after the date that the employer receives the provider's bill or a completed                              

01       report as required by AS 23.30.095(c), whichever is later.                                                        
02            (e)  Unless the employer controverts a charge, an employer shall reimburse an                                
03       employee's prescription charges under this chapter within 30 days after the employer                              
04       received the health care provider's completed report and an itemization of the                                    
05       prescription charges for the employee.  Unless the employer controverts a charge, an                              
06       employer shall reimburse transportation expenses for medical treatment under this                                 
07       chapter within 30 days after the employer received the health care provider's                                     
08       completed report and an itemization of the date, destination, and transportation                                  
09       expenses for each date of travel for medical treatment.  If the employer does not plan                            
10       to make or does not make payment or reimbursement in full as required by this                                     
11       subsection, the employer shall notify in writing the employee and the employee's                                  
12       health care provider that payment will not be timely made and the reason for the                                  
13       nonpayment.  The notification must be provided on or before the date that payment is                              
14       due under this subsection or (d) of this section.                                                                 
15            (f)  An employee may not be required to pay a fee or charge for medical                                      
16       treatment or service provided under this chapter.                                                                 
17    * Sec. 28.  AS 23.30.100(b) is amended to read:                                                                    
18            (b)  The notice must be in writing, contain the name and address of the                                      
19       employee, [AND] a statement of the time, place, nature, and cause of the injury or                            
20       death, and authority to release records of medical treatment for the injury or                                
21       death, and be signed by the employee or by a person on behalf of the employee, or, in                     
22       case of death, by a person claiming to be entitled to compensation for the death or by a                          
23       person on behalf of that person.                                                                                  
24    * Sec. 29.  AS 23.30.107(b) is amended to read:                                                                    
25            (b)  Medical or rehabilitation records in an employee's file maintained by the                               
26       division or held by the board are not public records subject to public inspection and                         
27       copying under AS 40.25. This subsection does not prohibit                                                         
28                 (1)  the reemployment benefits administrator, the division, the board,                              
29       or the department from releasing medical or rehabilitation records in an employee's                               
30       file, without the employee's consent, to a physician providing medical services under                             
31       AS 23.30.095(k) or 23.30.110(g), a party to a claim filed by the employee, or a                                   

01       governmental agency; or                                                                                           
02                 (2)  the quoting or discussing of medical or rehabilitation records                                     
03       contained in an employee's file during a hearing on a claim for compensation [,] or in                            
04       a decision and order of the board.                                                                                
05    * Sec. 30.  AS 23.30.107 is amended by adding a new subsection to read:                                            
06            (c)  The division may not assemble, or provide information respecting,                                       
07       individual records for commercial purposes that are outside the scope of this chapter.                            
08    * Sec. 31.  AS 23.30.122 is repealed and reenacted to read:                                                        
09            Sec. 23.30.122.  Credibility of witnesses.  The board has the sole power to                                
10       determine the credibility of testimony presented by a witness.  When credibility is                               
11       disputed in a proceeding before the board, the board's determination of credibility                               
12       must be supported by specific findings.                                                                           
13    * Sec. 32.  AS 23.30.125 is repealed and reenacted to read:                                                        
14            Sec. 23.30.125.  Administrative review of compensation order.  (a)  A                                      
15       compensation order becomes effective when filed with the office of the board as                                   
16       provided in AS 23.30.110, and, unless proceedings to reconsider, suspend, or set aside                            
17       the order are instituted as provided in this chapter, the order becomes final on the 31st                         
18       day after it is filed.                                                                                            
19            (b)  Notwithstanding other provisions of law, a decision or order of the board is                            
20       subject to review by the commission as provided in this chapter.                                                  
21            (c)  If a compensation order is not in accordance with law or fact, the order                                
22       may be suspended or set aside, in whole or in part, through proceedings in the                                    
23       commission brought by a party in interest against all other parties to the proceedings                            
24       before the board.  The payment of the amounts required by an award may not be                                     
25       stayed pending a final decision in the proceeding unless, upon application for a stay,                            
26       the commission, on hearing, after not less than three days' notice to the parties in                              
27       interest, allows the stay of payment, in whole or in part, where the party filing the                             
28       application would otherwise suffer irreparable damage.  Continuing future periodic                                
29       compensation payments may not be stayed without a showing by the appellant of                                     
30       irreparable damage and the existence of the probability of the merits of the appeal                               
31       being decided adversely to the recipient of the compensation payments.  The order of                              

01       the commission allowing a stay must contain a specific finding, based upon evidence                               
02       submitted to the commission and identified by reference to the evidence, that                                     
03       irreparable damage would result to the party applying for a stay and specifying the                               
04       nature of the damage.                                                                                             
05            (d)  Proceedings for reconsidering, suspending, setting aside, or enforcing a                                
06       compensation order, whether rejecting a claim or making an award, may not be                                      
07       instituted, except as provided in this chapter.                                                                   
08    * Sec. 33.  AS 23.30 is amended by adding new sections to read:                                                    
09            Sec. 23.30.127.  Appeals to commission.  (a)  A party in interest may appeal a                             
10       compensation order issued by the board to the commission within 30 days after the                                 
11       compensation order is filed with the office of the board under AS 23.30.110.  The                                 
12       director may intervene in an appeal.  If a party in interest is not represented by counsel                        
13       and the compensation order concerns an unsettled question of law, the director may                                
14       file an appeal to obtain a ruling on the question by the commission.                                              
15            (b)  An appeal is initiated by filing with the office of the commission                                      
16                 (1)  a signed notice of appeal specifying the compensation order                                        
17       appealed from;                                                                                                    
18                 (2)  a statement of the grounds upon which the appeal is taken; and                                     
19                 (3)  other material the commission may by regulation require.                                           
20            (c)  A cross-appeal may be initiated by filing with the office of the commission                             
21       a signed notice of cross-appeal within 30 days after the decision is filed or within 15                           
22       days after service of notice of an appeal, whichever is later.  The notice of cross-                              
23       appeal shall specify the compensation order appealed from and the grounds upon                                    
24       which the cross-appeal is taken.                                                                                  
25            (d)  The office of the commission may charge a fee, not to exceed $100, for                                  
26       filing appeals and cross-appeals, except that the office of the commission may not                                
27       charge a fee if the appellant is the state or a political subdivision of the state.  The                          
28       commission may require an appellant to pay the costs of the transcript of hearing and                             
29       the preparation of the record on appeal.  The commission may require cross-appellants                             
30       or intervenors to share in the costs.                                                                             
31            (e)  If a request for reconsideration of a board decision was timely filed with                              

01       the office of the board, the notice of appeal must be filed within 30 days after the                              
02       reconsideration decision is mailed to the parties, or the date the request for                                    
03       reconsideration is considered denied in the absence of any action on the request,                                 
04       whichever is earlier.                                                                                             
05            (f)  The commission may require written briefs and make other rules and                                      
06       orders to facilitate the business of the commission and advance the prompt, fair, and                             
07       just disposition of appeals.                                                                                      
08            Sec. 23.30.128.  Commission proceedings.  (a)  An appeal from a decision of                                
09       the board under this chapter, and other proceedings under this section, shall be heard                            
10       and decided by a three-member panel of the commission.  An appeal panel of the                                    
11       commission must include the chair of the commission.  The chair of the commission                                 
12       shall assign two members to each appeal, including one commission member                                          
13       classified as representing employees and one commission member classified as                                      
14       representing employers.  Acts, decisions, and orders of the commission panel in the                               
15       appeal or related proceeding shall be considered the acts, decisions, and orders of the                           
16       full commission.  The matter on appeal shall be decided on the record made before the                             
17       board, a transcript or recording of the proceedings before the board, and oral argument                           
18       and written briefs allowed by the commission.  Except as provided in (c) of this                                  
19       section, new or additional evidence may not be received with respect to the appeal.                               
20            (b)  The commission may review discretionary actions, findings of fact, and                                  
21       conclusions of law by the board in hearing, determining, or otherwise acting on a                                 
22       compensation claim or petition.  The board's findings regarding the credibility of                                
23       testimony of a witness before the board are binding on the commission.  The board's                               
24       findings of fact shall be upheld by the commission if supported by substantial                                    
25       evidence in light of the whole record.  In reviewing questions of law and procedure,                              
26       the commission shall exercise its independent judgment.                                                           
27            (c)  The commission may hold hearings and receive evidence on applications                                   
28       for (1) stays under AS 23.30.125; (2) attorney fees and costs of appeal; (3) waiver of                            
29       fees by indigent appellants; or (4) dismissal of appeals for failure to prosecute or upon                         
30       settlement.  The commission may rely on new or additional evidence presented during                               
31       the hearing in making its decision on the application.                                                            

01            (d)  The commission may affirm, reverse, or modify a decision or order upon                                  
02       review and issue other orders as appropriate.  The commission may remand matters it                               
03       determines were improperly, incompletely, or otherwise insufficiently developed.  The                             
04       commission may remand for further proceedings and appropriate action with or                                      
05       without relinquishing the commission's jurisdiction of the appeal.  The administrative                            
06       adjudication procedures of AS 44.62 (Administrative Procedure Act) do not apply to                                
07       the proceedings of the commission.                                                                                
08            (e)  Within 90 days after written briefing on the appeal is completed or oral                                
09       argument is held, whichever is later, the commission shall issue a decision in writing.                           
10       The decision must contain a concise statement of reasons for the decision, including                              
11       findings of fact, if required, and conclusions of law.  The commission shall serve each                           
12       party and the director with a copy of the decision.  Appeals may be expedited for good                            
13       cause by the commission.  Unless reconsideration is ordered under (f) of this section, a                          
14       decision under this subsection is the final commission decision.                                                  
15            (f)  A party or the director may request reconsideration of a decision issued                                
16       under (e) of this section within 30 days after the date of service shown in the                                   
17       certificate of service of the decision.  The request must state specific grounds for                              
18       reconsideration.  Reconsideration may be granted if, in reaching the decision, the                                
19       commission (1) overlooked, misapplied, or failed to consider a statute, regulation,                               
20       court or administrative decision, or legal principle directly controlling; (2) overlooked                         
21       or misconceived a material fact; (3) misconceived a material question in the case; or                             
22       (4) applied law in the ruling that has subsequently changed.  The panel of the                                    
23       commission hearing the request for reconsideration shall consist of the same members                              
24       of the panel that issued the decision.  The commission may issue an order for                                     
25       reconsideration of all or part of the decision upon request of a party or the director.                           
26       Reconsideration is based on the record, unless the commission allows additional                                   
27       argument.  The power to order reconsideration expires 60 days after the date of                                   
28       service, as shown on the certificate of service, of a decision issued under (e) of this                           
29       section.  If the commission does not issue an order for reconsideration within the time                           
30       allowed for ordering reconsideration, a request for reconsideration is considered                                 
31       denied.  If reconsideration is ordered, the commission shall issue a decision within 30                           

01       days after the close of the record on reconsideration.  The commission shall serve each                           
02       party in the case with a copy of the decision upon reconsideration.  The decision upon                            
03       reconsideration is the final commission decision.                                                                 
04            (g)  A decision of the commission becomes final on the                                                       
05                 (1)  31st day after the date of service of a decision if reconsideration is                             
06       not requested;                                                                                                    
07                 (2)  61st day after the date of service of a decision if reconsideration is                             
08       requested but an order for reconsideration is not issued; or                                                      
09                 (3)  date of service of the commission decision upon reconsideration                                    
10       under (f) of this section if reconsideration is requested and an order for reconsideration                        
11       is issued.                                                                                                        
12            Sec. 23.30.129.  Judicial review of commission orders.  (a)  Notwithstanding                               
13       the provisions of AS 44.62.560, orders of the commission may not be appealed to the                               
14       superior court.  Consistent with AS 22.05.010(b), final decisions of the commission                               
15       may be appealed to the supreme court, and other orders may be reviewed by the                                     
16       supreme court as provided by the Alaska Rules of Appellate Procedure.                                             
17            (b)  A finding by the commission concerning the weight to be accorded a                                      
18       witness's testimony, including medical testimony and reports, is conclusive even if the                           
19       evidence is conflicting or susceptible to contrary conclusions.  The commission's                                 
20       findings of fact may be reversed on appeal if not supported by substantial evidence in                            
21       light of the whole record.                                                                                        
22    * Sec. 34.  AS 23.30.175(b) is amended to read:                                                                    
23            (b)  The following rules apply to benefits payable to recipients not residing in                             
24       the state at the time compensation benefits are payable:                                                          
25                 (1)  the weekly rate of compensation shall be calculated by multiplying                                 
26       the recipient's weekly compensation rate calculated under AS 23.30.180, 23.30.185,                                
27       23.30.190, 23.30.200, or 23.30.215 [,] by the ratio of the cost of living of the area in                          
28       which the recipient resides to the cost of living in this state;                                                  
29                 (2)  the calculation required by (1) of this subsection does not apply if                               
30       the recipient is absent from the state for medical or rehabilitation services not                                 
31       reasonably available in the state;                                                                                

01                 (3)  if the gross weekly earnings of the recipient and the resulting                                    
02       compensation rate are determined under AS 23.30.220(a)(6), (7), or (10), the                                      
03       calculation required by this subsection applies only to the portion of the recipient's                            
04       weekly compensation rate attributable to wages earned in the state;                                               
05                 (4)  application of this subsection may not reduce the weekly                                           
06       compensation rate to less than $154 a week, except as provided in (a) of this section;                        
07                 (5)  application of (1) - (4) of this subsection may not result in                                  
08       raising a recipient's weekly compensation rate to an amount that exceeds the                                  
09       weekly compensation rate that the recipient would have received if the recipient                              
10       had been residing in the state.                                                                               
11    * Sec. 35.  AS 23.30.175(c) is amended to read:                                                                    
12            (c)  The department [BOARD] shall provide by regulation for the                                          
13       determination and comparison of living costs for this state and the other areas in which                          
14       recipients reside and for the [ANNUAL] redetermination and comparison of these                                    
15       costs every three years.                                                                                      
16    * Sec. 36.  AS 23.30.205(e) is amended to read:                                                                    
17            (e)  The second injury fund may not be bound as to any question of law or fact                               
18       by reason of an award or an adjudication to which it was not a party or in relation to                            
19       which the director [COMMISSIONER] was not notified at least three weeks before                                
20       the award or adjudication [,] that the fund might be subject to liability for the injury or                       
21       death.                                                                                                            
22    * Sec. 37.  AS 23.30 is amended by adding a new section to read:                                                   
23            Sec. 23.30.224.  Coordination of benefits.  (a) Notwithstanding other                                      
24       provisions of this chapter, an employer's liability for payment of weekly compensation                            
25       under AS 23.30.180 or 23.30.185 to an employee eligible for a disability benefit under                            
26       AS 14.25.130, AS 39.35.400, or 39.35.410 may not exceed the lesser of                                             
27                 (1)  the difference between the disability benefit payable to the                                       
28       employee under AS 14.25.130, AS 39.35.400, or 39.35.410, converted to a weekly                                    
29       basis, and 100 percent of the employee's spendable weekly wage as calculated under                                
30       AS 23.30.220; or                                                                                                  
31                 (2)  the maximum compensation rate calculated under AS 23.30.175.                                       

01            (b)  An employer's liability for payment of compensation under                                               
02       AS 23.30.041(k) to an employee eligible for a disability benefit payable under                                    
03       AS 14.25.130, AS 39.35.400, or 39.35.410 may not exceed the lesser of                                             
04                 (1)  the difference between the disability benefit payable to the                                       
05       employee under AS 14.25.130, AS 39.35.400, or 39.35.410, converted to a weekly                                    
06       basis, and 80 percent of the employee's spendable weekly wage as calculated under                                 
07       AS 23.30.220; or                                                                                                  
08                 (2)  105 percent of the average weekly wage calculated under                                            
09       AS 23.30.175(d).                                                                                                  
10            (c)  Notwithstanding other provisions of this chapter, the liability of an                                   
11       employer for payment of compensation for an injury or illness under AS 23.30.180 or                               
12       23.30.185 to an employee who is covered by a union or group retirement system to                                  
13       which the employer makes contributions under a collective bargaining agreement or                                 
14       by membership in a welfare or pension plan or trust may not exceed the lesser of                                  
15                 (1)  the difference between 100 percent of the employee's spendable                                     
16       weekly wage and an amount equal to the disability benefit, disability pension, or                                 
17       medical retirement benefit that the employee is eligible to receive as a result of the                            
18       injury or illness, as calculated on a weekly basis, under the retirement system or                                
19       welfare or pension plan or trust; or                                                                              
20                 (2)  the maximum compensation rate calculated under AS 23.30.175.                                       
21            (d)  If the union or group retirement system, pension plan, or trust referred to in                          
22       (c) of this section provides by its terms that its benefits are precluded or reduced if                           
23       benefits are awarded under this chapter, the limitation provided in (c)(1) of this section                        
24       is not applicable to the extent of the amount precluded or reduced.                                               
25            (e)  Notwithstanding other provisions of this chapter, the liability of an                                   
26       employer for payment of compensation for an injury or illness under AS 23.30.041(k)                               
27       to an employee who is covered by a union or group retirement system to which the                                  
28       employer makes contributions under a collective bargaining agreement or by                                        
29       membership in a welfare or pension plan or trust may not exceed the lesser of                                     
30                 (1)  the difference between 80 percent of the employee's spendable                                      
31       weekly wage and an amount equal to the disability benefit, disability pension, or                                 

01       medical retirement benefit that the employee is eligible to receive as a result of the                            
02       injury or illness, calculated on a weekly basis, under the retirement system or welfare                           
03       or pension plan or trust; or                                                                                      
04                 (2)  105 percent of the average weekly wage calculated under                                            
05       AS 23.30.175(d).                                                                                                  
06            (f)  If the union or group retirement system, pension plan, or trust referred to in                          
07       (e) of this section provides by its terms that its benefits are precluded or reduced if                           
08       benefits are awarded under this chapter, the limitation provided in (e)(1) of this section                        
09       is not applicable to the extent of the amount precluded or reduced.                                               
10            (g)  If the employee receives a lump sum distribution of disability benefits,                                
11       disability pension, or medical retirement benefits, the combined workers'                                         
12       compensation and weekly disability or medical retirement benefit specified in this                                
13       section shall be calculated by assuming that the employee received weekly disability                              
14       or medical retirement payments under the applicable plan from the date of eligibility                             
15       for the disability benefit or medical retirement until the total of the weekly payments                           
16       equals the amount of the lump sum, exclusive of that portion of the lump sum                                      
17       specifically set aside under the applicable plan for retraining expenses, medical and                             
18       transportation expenses, and attorney fees or other legal costs.                                                  
19    * Sec. 38.  AS 23.30.240 is amended to read:                                                                       
20            Sec. 23.30.240.  Officers of corporations, municipal corporations and                                      
21       nonprofit corporations and members of limited liability companies as employees.                               
22       An executive officer elected or appointed and empowered in accordance with the                                    
23       charter and bylaws of a corporation, other than an official of a municipal corporation                            
24       or a charitable, religious, educational, or other nonprofit corporation, is an employee                           
25       of the corporation under this chapter.  However, an executive officer of a corporation                            
26       may waive coverage under this chapter, subject to the approval of the director                                
27       [COMMISSIONER OF LABOR AND WORKFORCE DEVELOPMENT],                                                                
28       notwithstanding AS 23.30.245(b).  Notwithstanding any other provision of this                                     
29       chapter, an executive officer of a municipal corporation or of a charitable, religious,                           
30       educational, or other nonprofit corporation may be brought within the coverage of its                             
31       insurance contract by the corporation by specifically including the officer in the                                

01       contract of insurance.  The election to bring an executive officer within the coverage                            
02       continues in force for the period the contract of insurance is in effect.  During that                            
03       period, an executive officer brought within the coverage of the insurance contract is an                      
04       employee of the corporation under this chapter.                                                                   
05    * Sec. 39.  AS 23.30.240 is amended by adding a new subsection to read:                                            
06            (b)  Except as provided in this subsection, a member of a limited liability                                  
07       company organized under AS 10.50 is not an employee of the company under this                                     
08       chapter.  Notwithstanding any other provision of this chapter, a limited liability                                
09       company may bring a member of the company within the coverage of the company's                                    
10       insurance contract by specifically including the member in the contract of insurance.                             
11       The election to bring the member within the company's coverage continues in force                                 
12       for the period the contract of insurance is in effect.  During that period, a member                              
13       brought within the coverage of the insurance contract is an employee of the company                               
14       under this chapter.                                                                                               
15    * Sec. 40.  AS 23.30 is amended by adding a new section to read:                                                   
16            Sec. 23.30.249.  Fraudulent acts and false or misleading statements.  (a)                                  
17       An employer, insurer, or other person may petition for an order to reimburse a                                    
18       payment and the cost of compensation, medical treatment, or other benefit provided                                
19       under this chapter obtained by a fraudulent act or false or misleading statement or                               
20       representation.  If the board, after a hearing as provided by AS 23.30.110, finds by a                            
21       preponderance of the evidence that a person has obtained a payment, compensation,                                 
22       medical treatment, or another benefit provided under this chapter, or that a provider                             
23       has received a payment, by a fraudulent act or by knowingly making a false or                                     
24       misleading statement or representation for the purpose of obtaining that benefit or                               
25       payment, the board shall order that person to make full reimbursement of the payment                              
26       or cost of all benefits obtained.  Upon entry of an order authorized under this                                   
27       subsection, the board shall also order that person to pay all reasonable costs and                                
28       attorney fees incurred in obtaining an order under this section and in defending a                                
29       fraudulent claim made for benefits under this chapter.  If a person fails to comply with                          
30       an order requiring reimbursement of payment or cost of benefits and payment of costs                              
31       and attorney fees, the employer, insurer, or other party may declare the person in                                

01       default and proceed to collect any sum due in the same manner as provided under                                   
02       AS 23.30.170(b) and (c).                                                                                          
03            (b)  Except as provided in (c) of this section, a person is not liable for civil                             
04       damages for filing a report concerning a suspected, anticipated, or completed                                     
05       fraudulent act or a false or misleading statement or representation with, or for                                  
06       furnishing other information, whether written or oral, concerning a suspected,                                    
07       anticipated, or completed fraudulent act or false or misleading statements or                                     
08       representation to                                                                                                 
09                 (1)  law enforcement officials or their agents and employees;                                           
10                 (2)  the division of workers' compensation, the division of insurance in                                
11       the Department of Commerce, Community, and Economic Development, or an agency                                     
12       in another state that regulates insurance or workers' compensation;                                               
13                 (3)  an insurer or adjuster or its agents, employees, or designees, or the                              
14       risk manager of a self-insured employer under this chapter.                                                       
15            (c)  The provisions of (b) of this section do not preclude liability for civil                               
16       damages as described in (b) of this section if the liability arose as a result of reckless,                       
17       wilful, or intentional misconduct.                                                                                
18            (d)  An insurer, an adjuster, or a risk manager of a self-insured employer that                              
19       has reason to believe that a fraudulent workers' compensation demand or claim has                                 
20       been made against it shall send the director a report disclosing information that the                             
21       director may require.  An insurer or an adjuster or its employee or agent, or a risk                              
22       manager of a self-employed employer, or another person acting in good faith is not                                
23       civilly liable for damages resulting from the filing of the report or the furnishing of                           
24       information required by this section or by the director.                                                          
25            (e)  The director may investigate facts reported under this section and may                                  
26       refer facts indicating a possible violation of law to the appropriate prosecutor or                               
27       agency.  If the director determines that there is credible evidence that a person                                 
28       obtained a payment, compensation, medical treatment, or other benefit provided under                              
29       this chapter by a fraudulent act or false or misleading statement or representation as                            
30       provided in (a) of this section, the director shall notify the affected employer, insurer,                        
31       and adjuster upon conclusion of the investigation.  If the fraudulent act or false or                             

01       misleading statement or representation was perpetrated against the division, the                                  
02       director may file a petition as provided in AS 23.30.110 for an order of forfeiture                               
03       against the person, precluding, in whole or in part, the person from future payment,                              
04       compensation, medical treatment, or other benefit provided under this chapter.                                    
05            (f)  The papers, reports, documents, and evidence received under this section or                             
06       in an investigation arising from information received under this section are not subject                          
07       to public inspection for so long as the director considers confidentiality to be in the                           
08       public interest or reasonably necessary to complete an investigation or protect the                               
09       person investigated from unwarranted injury.  Papers, reports, documents, and                                     
10       evidence relative to an investigation under this section are confidential and not subject                         
11       to subpoena unless, after notice to the director and a hearing, a court determines that                           
12       the director would not be unduly hindered by public inspection.                                                   
13            (g)  If the material that the director seeks to obtain is located outside the state,                         
14       the material may be made available to the director to examine at the place where the                              
15       material is located.  The director may designate representatives, including officials of                          
16       the state in which the material is located, to inspect the material on behalf of the                              
17       director.  The director may respond to a request from an official of another state for                            
18       similar material.                                                                                                 
19            (h)  In this section, "fraudulent act" includes                                                              
20                 (1)  to knowingly pretend injury or disability with intent to defraud or                                
21       obtain a benefit under this chapter;                                                                              
22                 (2)  to knowingly conceal, suppress, destroy, remove, or alter records                                  
23       with intent to defraud or obtain a benefit under this chapter;                                                    
24                 (3)  to knowingly assist or prepare another person to submit a false or                                 
25       misleading statement in support of a claim for benefits under this chapter with reckless                          
26       disregard that the person is not entitled to benefits under this chapter;                                         
27                 (4)  to use force against a person, damage the property of a person, or                                 
28       threaten a person with intent to improperly influence the opinion of a witness, a                                 
29       physician, or other health care provider;                                                                         
30                 (5)  except as otherwise authorized under this chapter, to knowingly                                    
31       confer, offer to confer, solicit, agree to accept, or accept property, services, or a                             

01       benefit                                                                                                           
02                      (A)  to refer an employee to a physician or other health care                                      
03            provider; or                                                                                                 
04                      (B)  for providing medical treatment, services, medicines, or                                      
05            supplies to an employee if the property, services, or benefit is in addition to                              
06            payment by the employer, insurer, or adjuster allowed under this chapter.                                    
07    * Sec. 41.  AS 23.30.250(a) is amended to read:                                                                    
08            (a) A person, including an employee, employer, physician, medical                                        
09       provider, or the representative of a person who (1) knowingly makes a false or                                
10       misleading statement, representation, or submission related to a benefit under this                               
11       chapter; (2) knowingly assists, abets, solicits, or conspires in making a false or                                
12       misleading submission affecting the payment, coverage, or other benefit under this                                
13       chapter; (3) knowingly misclassifies employees or engages in deceptive leasing                                    
14       practices for the purpose of evading full payment of workers' compensation insurance                              
15       premiums; or (4) employs or contracts with a person or firm to coerce or encourage an                             
16       individual to file a fraudulent compensation claim is civilly liable to a person                                  
17       adversely affected by the conduct, is guilty of theft by deception as defined in                                  
18       AS 11.46.180, and may be punished as provided by AS 11.46.120 - 11.46.150.                                        
19    * Sec. 42.  AS 23.30.250(b) is repealed and reenacted to read:                                                     
20            (b)  To the extent allowed by law, in a civil action under (a) of this section, an                           
21       award of damages by a court or jury may include compensatory damages, subject to                                  
22       AS 09.17.  Attorney fees may be awarded to a prevailing party as allowed by law.                                  
23    * Sec. 43.  AS 23.30.260 is amended by adding a new subsection to read:                                            
24            (b)  Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is                              
25       not required if the fee does not exceed $300 and is a one-time-only charge to an                                  
26       employee by an attorney licensed in this state who performed legal services with                                  
27       respect to the employee's claim but did not enter an appearance.                                                  
28    * Sec. 44.  AS 23.30.395(17) is amended to read:                                                                   
29                 (17)  "injury" means accidental injury or death arising out of and in the                               
30       course of employment, and an occupational disease or infection that [WHICH] arises                            
31       naturally out of the employment or that [WHICH] naturally or unavoidably results                              

01       from an accidental injury; "injury" includes breakage or damage to eyeglasses, hearing                            
02       aids, dentures, or any prosthetic devices that [WHICH] function as part of the body                           
03       and further includes an injury caused by the wilful act of a third person directed                                
04       against an employee because of the employment; "injury" does not include                                      
05       aggravation, acceleration, or combination with a preexisting condition, unless the                            
06       employment is the major contributing cause of the disability or need for medical                              
07       treatment, and does not include mental injury caused by mental stress, unless it is                       
08       established that (A) the work stress was extraordinary and unusual in comparison to                               
09       pressures and tensions experienced by individuals in a comparable work environment,                               
10       and (B) the work stress was the predominant cause of the mental injury; the amount of                             
11       work stress shall be measured by actual events; a mental injury is not considered to                              
12       arise out of and in the course of employment if it results from a disciplinary action,                            
13       work evaluation, job transfer, layoff, demotion, termination, or similar action, taken in                         
14       good faith by the employer;                                                                                       
15    * Sec. 45.  AS 23.30.395 is amended by adding new paragraphs to read:                                              
16                 (35)  "attending physician" means one of the following designated by                                    
17       the employee under AS 23.30.095(a) or (b):                                                                        
18                      (A)  a licensed medical doctor;                                                                    
19                      (B)  a licensed doctor of osteopathy;                                                              
20                      (C)  a licensed dentist or dental surgeon;                                                         
21                      (D)  a licensed physician assistant acting under supervision of a                                  
22            licensed medical doctor or doctor of osteopathy;                                                             
23                      (E)  a licensed advanced nurse practitioner; or                                                    
24                      (F)  a licensed chiropractor;                                                                      
25                 (36)  "commission" means the Workers' Compensation Appeals                                              
26       Commission;                                                                                                       
27                 (37)  "commissioner" means the commissioner of labor and workforce                                      
28       development;                                                                                                      
29                 (38)  "department" means the Department of Labor and Workforce                                          
30       Development;                                                                                                      
31                 (39)  "director" means the director of the division of workers'                                         

01       compensation in the department;                                                                                   
02                 (40)  "division" means the division of workers' compensation in the                                     
03       department.                                                                                                       
04    * Sec. 46.  AS 37.05.146(c) is amended by adding a new paragraph to read:                                          
05                 (78)  workers' compensation benefits guaranty fund (AS 23.30.082).                                      
06    * Sec. 47.  AS 39.25.110 is amended by adding a new paragraph to read:                                             
07                 (40)  the chair of the Workers' Compensation Appeals Commission                                         
08       (AS 23.30.007).                                                                                                   
09    * Sec. 48.  AS 39.25.120(c)(14) is amended to read:                                                                
10                 (14)  the rehabilitation administrator of the division of workers'                                  
11       compensation [WORKERS' COMPENSATION BOARD];                                                                   
12    * Sec. 49.  AS 39.50.200(b)(31) is amended to read:                                                                
13                 (31)  Workers' Compensation Board (AS 23.30.005) and Workers'                                       
14       Compensation Appeals Commission (AS 23.30.007);                                                               
15    * Sec. 50.  AS 23.30.095(f), 23.30.095(l), and 23.30.095(m) are repealed.                                          
16    * Sec. 51.  AS 23.30.097, enacted in sec. 27 of this Act, is repealed June 30, 2007.                               
17    * Sec. 52.  The uncodified law of the State of Alaska is amended by adding a new section to                        
18 read:                                                                                                                   
19       TASK FORCE ON WORKERS' COMPENSATION.  (a)  There is established in the                                            
20 legislative branch the Task Force on Workers' Compensation to address the improvement of                                
21 the Alaska workers' compensation system, including                                                                      
22            (1)  a review of workers' compensation and insurance reform measures                                         
23 throughout the United States and an assessment of the effects of those reforms;                                         
24            (2)  an analysis and assessment of proposals for workers' compensation and                                   
25 workers' compensation liability insurance reform in Alaska;                                                             
26            (3)  a review of current Alaskan workers' compensation benefits and costs and                                
27 an assessment of needed changes;                                                                                        
28            (4)  a review of compliance with current Alaska workers' compensation laws;                                  
29            (5)  a consideration of other issues determined to be relevant by members of                                 
30 the task force.                                                                                                         
31       (b)  The task force established under (a) of the section shall consist of 11 voting                               

01 members.  One member shall be a state senator appointed by the president of the senate, one                             
02 member shall be a state representative appointed by the speaker of the house of                                         
03 representatives, and one member shall be a member of the minority in either house jointly                               
04 selected by the president of the senate and the speaker of the house of representatives.  Eight                         
05 members shall be appointed jointly by the president of the senate and speaker of the house of                           
06 representatives as follows:                                                                                             
07            (1)  a representative of the Alaska State Medical Association;                                               
08            (2)  an attorney who represents employees in workers' compensation cases;                                    
09            (3)  an attorney who represents employers in workers' compensation cases;                                    
10            (4)  a representative of the insurance industry that provides workers'                                       
11 compensation insurance;                                                                                                 
12            (5)  a representative from organized labor;                                                                  
13            (6)  a person representing employees not represented by organized labor;                                     
14            (7)  a person representing small businesses; and                                                             
15            (8)  a person representing larger businesses.                                                                
16       (c)  The task force established under (a) of this section                                                         
17            (1)  may begin work immediately upon the appointment of its full voting                                      
18 membership and shall meet at least three times telephonically or in person;                                             
19            (2)  shall hold public hearings and may perform research related to its work;                                
20            (3)  may meet in the interim and vote telephonically;                                                        
21            (4)  shall report its written findings and give a copy of proposed legislation and                           
22 other recommendations to the president of the senate and the speaker of the house of                                    
23 representatives before December 1, 2005; and                                                                            
24            (5)  is terminated on February 1, 2006.                                                                      
25    * Sec. 53.  The uncodified law of the State of Alaska is amended by adding a new section to                        
26 read:                                                                                                                   
27       APPLICABILITY.  The amendment to AS 23.30.175(b) made by sec. 34 of this Act                                      
28 applies to an injury occurring on or after the effective date of sec. 34 of this Act.                                   
29    * Sec. 54.  The uncodified law of the State of Alaska is amended by adding a new section to                        
30 read:                                                                                                                   
31       TRANSITION:  INITIAL TERMS OF MEMBERS OF WORKERS'                                                                 

01 COMPENSATION APPEALS COMMISSION.  Notwithstanding AS 23.30.007(e), enacted                                              
02 by sec. 9 of this Act, the terms of the initially appointed representative members of the                               
03 Workers' Compensation Appeals Commission, established by AS 23.30.007, enacted by sec. 9                                
04 of this Act, shall be set by the governor to achieve staggered terms in the manner provided in                          
05 AS 39.05.055.                                                                                                           
06    * Sec. 55.  The uncodified law of the State of Alaska is amended by adding a new section to                        
07 read:                                                                                                                   
08       TRANSITION:  STAFF.  (a)  In order to ensure the smooth assumption of duties in                                   
09 the shortest possible time, for a period of six months after the effective date of this section, the                    
10 director may, with the approval of the commissioner of labor and workforce development and                              
11 the chair of the commission, temporarily assign division employees to the commission and the                            
12 commission may reimburse the division for the temporarily assigned employees.  Division                                 
13 employees temporarily assigned to the commission shall continue in the same position and                                
14 rate of pay for the duration of the temporary assignment as the employees held at the division.                         
15       (b)  In this section,                                                                                             
16            (1)  "commission" means the Workers' Compensation Appeals Commission                                         
17 established by AS 23.30.007, enacted by sec. 9 of this Act;                                                             
18            (2)  "director" means the director of the division of workers' compensation in                               
19 the Department of Labor and Workforce Development;                                                                      
20            (3)  "division" means the division of workers' compensation in the Department                                
21 of Labor and Workforce Development.                                                                                     
22    * Sec. 56.  The uncodified law of the State of Alaska is amended by adding a new section to                        
23 read:                                                                                                                   
24       TRANSITIONAL PROVISIONS.  (a)  Litigation, investigations, and other                                              
25 proceedings pending under a law amended or repealed by this Act or in connection with                                   
26 functions transferred by this Act continue in effect and may be continued and completed,                                
27 notwithstanding a transfer or amendment or repeal provided for in this Act.                                             
28       (b)  Certificates, decisions, and orders issued under authority of a law amended or                               
29 repealed by this Act remain in effect for the term issued, or until revoked, vacated, or                                
30 otherwise modified under the provisions of this Act.  Contracts, rights, liabilities, and                               
31 obligations created by or under a law amended or repealed by this Act and in effect on the day                          

01 before the effective date of this section remain in effect, notwithstanding this Act's taking                           
02 effect.                                                                                                                 
03    * Sec. 57.  The uncodified law of the State of Alaska is amended by adding a new section to                        
04 read:                                                                                                                   
05       TRANSITION: REGULATIONS.  (a)  The Department of Labor and Workforce                                              
06 Development and the director of insurance in the Department of Commerce, Community, and                                 
07 Economic Development may proceed to adopt regulations necessary to implement the                                        
08 respective provisions for which each is responsible under this Act.  The regulations take effect                        
09 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the                                 
10 statutory changes.                                                                                                      
11       (b)  In order to provide for the procedures and other administrative matters necessary                            
12 to ensure the ongoing implementation of the state's workers' compensation laws to meet the                              
13 urgent needs of injured workers, and thus ensure the preservation of the public peace, health,                          
14 safety, or general welfare, the Workers' Compensation Appeals Commission established by                                 
15 AS 23.30.007, enacted by sec. 9 of this Act, may adopt under AS 23.30.008, enacted by sec. 9                            
16 of this Act, as emergency regulations, the regulations necessary to implement the changes                               
17 made by this Act.                                                                                                       
18    * Sec. 58.  The uncodified law of the State of Alaska is amended by adding a new section to                        
19 read:                                                                                                                   
20       TRANSITION: MEDICAL SERVICES REVIEW COMMITTEE STUDY AND                                                           
21 REPORT.  The medical services review committee appointed by the commissioner of labor                                   
22 and workforce development under AS 23.30.095(j), as amended by sec. 25 of this Act, shall                               
23 proceed to study medical and related benefits provided under AS 23.30 to determine the                                  
24 appropriateness, necessity, delivery, and cost of the benefits and shall, before the end of the                         
25 first week of the First Regular Session of the Twenty-Fifth Alaska State Legislature, provide                           
26 to the legislature and the commissioner of labor and workforce development a report of the                              
27 results of the study.                                                                                                 
28    * Sec. 59.  Section 57(a) of this Act takes effect immediately under AS 01.10.070(c).                              
29    * Sec. 60.  Sections 1 - 4, 34, and 58 of this Act take effect September 1, 2005.                                  
30    * Sec. 61.  Except as provided in secs. 59 and 60 of this Act, this Act takes effect August 1,                     
31 2005.