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HB 79: "An Act relating to workers' compensation; repealing the second injury fund upon satisfaction of claims; relating to service fees and civil penalties for the workers' safety programs and the workers' compensation program; relating to the liability of specified officers and members of specified business entities for payment of workers' compensation benefits and civil penalties; relating to civil penalties for underinsuring or failing to insure or provide security for workers' compensation liability; relating to preauthorization and timely payment for medical treatment and services provided to injured employees; relating to incorporation of reference materials in workers' compensation regulations; relating to proceedings before the Workers' Compensation Board; providing for methods of payment for workers' compensation benefits; relating to the workers' compensation benefits guaranty fund authority to claim a lien; excluding independent contractors from workers' compensation coverage; establishing the circumstances under which certain nonemployee executive corporate officers and members of limited liability companies may obtain workers' compensation coverage; relating to the duties of injured employees to report income or work; relating to misclassification of employees and deceptive leasing; defining 'employee'; relating to the Workers' Compensation Board's approval of attorney fees in a settlement agreement; and providing for an effective date."

00                              HOUSE BILL NO. 79                                                                          
01 "An Act relating to workers' compensation; repealing the second injury fund upon                                        
02 satisfaction of claims; relating to service fees and civil penalties for the workers' safety                            
03 programs and the workers' compensation program; relating to the liability of specified                                  
04 officers and members of specified business entities for payment of workers'                                             
05 compensation benefits and civil penalties; relating to civil penalties for underinsuring or                             
06 failing to insure or provide security for workers' compensation liability; relating to                                  
07 preauthorization and timely payment for medical treatment and services provided to                                      
08 injured employees; relating to incorporation of reference materials in workers'                                         
09 compensation regulations; relating to proceedings before the Workers' Compensation                                      
10 Board; providing for methods of payment for workers' compensation benefits; relating                                    
11 to the workers' compensation benefits guaranty fund authority to claim a lien; excluding                                
12 independent contractors from workers' compensation coverage; establishing the                                           
01 circumstances under which certain nonemployee executive corporate officers and                                          
02 members of limited liability companies may obtain workers' compensation coverage;                                       
03 relating to the duties of injured employees to report income or work; relating to                                       
04 misclassification of employees and deceptive leasing; defining 'employee'; relating to the                              
05 Workers' Compensation Board's approval of attorney fees in a settlement agreement;                                      
06 and providing for an effective date."                                                                                   
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1. AS 23.05.067(a) is amended to read:                                                                   
09            (a)  Each insurer providing workers' compensation insurance and each                                         
10 employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall                                  
11 pay an annual service fee to the department for the administrative expenses of the state                                
12 for workers' safety programs under AS 18.60 and the workers' compensation program                                       
13       under AS 23.30 as follows:                                                                                        
14                 (1)  for each employer,                                                                                 
15 (A)  except as provided in (b) of this section, the service fee                                                         
16 shall be paid each year to the department at the time that the annual report is                                         
17            required to be filed under AS 23.30.155(m) or (n); and                                                       
18 (B)  the service fee is 2.9 percent of all payments reported to the                                                     
19 division of workers' compensation in the department under AS 23.30.155(m)                                               
20            or (n), except second injury fund payments; and                                                              
21 (2)  for each insurer, the director of the division of insurance shall,                                                 
22 under (e) of this section, deposit from funds received from the insurer under                                           
23 AS 21.09.210 a service fee of 2.5 [1.82] percent of the direct premium income for                                   
24 workers' compensation insurance received by the insurer during the year ending on the                                   
25       preceding December 31, subject to all the deductions specified in AS 21.09.210(b).                                
26    * Sec. 2. AS 23.05.067(a), amended by sec. 1 of this Act, is amended to read:                                      
27 (a)  Each insurer providing workers' compensation insurance and each                                                    
28 employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall                                  
29 pay an annual service fee to the department for the administrative expenses of the state                                
01       for workers' safety programs under AS 18.60 and the workers' compensation program                                 
02       under AS 23.30 as follows:                                                                                        
03                 (1)  for each employer,                                                                                 
04                      (A)  except as provided in (b) of this section, the service fee                                    
05            shall be paid each year to the department at the time that the annual report is                              
06            required to be filed under AS 23.30.155(m) or (n); and                                                       
07                      (B)  the service fee is 2.9 percent of all payments reported to the                                
08            division of workers' compensation in the department under AS 23.30.155(m)                                    
09            or (n), [EXCEPT SECOND INJURY FUND PAYMENTS]; and                                                            
10 (2)  for each insurer, the director of the division of insurance shall,                                                 
11 under (e) of this section, deposit from funds received from the insurer under                                           
12 AS 21.09.210 a service fee of 2.5 percent of the direct premium income for workers'                                     
13 compensation insurance received by the insurer during the year ending on the                                            
14       preceding December 31, subject to all the deductions specified in AS 21.09.210(b).                                
15    * Sec. 3. AS 23.05.067(e) is amended to read:                                                                      
16 (e)  Annual service fees and civil penalties collected under this section and                                       
17 AS 23.30.155(c) and (m) shall be deposited in the workers' safety and compensation                                  
18 administration account in the state treasury. Under AS 37.05.146(c), the service fees                                   
19 and civil penalties shall be accounted for separately, and appropriations from the                                      
20 account are not made from the unrestricted general fund. The legislature may                                            
21 appropriate money from the account for expenditures by the department for necessary                                     
22 costs incurred by the department in the administration of the workers' safety programs                                  
23 contained in AS 18.60 and of the Alaska Workers' Compensation Act contained in                                          
24 AS 23.30. Nothing in this subsection creates a dedicated fund or dedicates the money                                    
25 in the account for a specific purpose. Money deposited in the account does not lapse at                                 
26       the end of a fiscal year unless otherwise provided by an appropriation.                                           
27    * Sec. 4. AS 23.30.015(e) is amended to read:                                                                    
28 (e)  An amount recovered by the employer under an assignment, whether by                                                
29       action or compromise, shall be distributed as follows:                                                            
30                 (1)  the employer shall retain an amount equal to                                                       
31 (A)  the expenses incurred by the employer with respect to the                                                          
01            action or compromise, including a reasonable attorney fee determined by the                                  
02            board;                                                                                                       
03                      (B)  the cost of all benefits actually furnished by the employer                                   
04            under this chapter;                                                                                          
05                      (C)  all amounts paid as compensation [AND SECOND-                                                 
06            INJURY FUND PAYMENTS,] and, if the employer is self-insured or                                           
07            uninsured, all service fees paid under AS 23.05.067;                                                         
08                      (D)  the present value of all amounts payable later as                                             
09            compensation, computed from a schedule prepared by the board, and the                                        
10 present value of the cost of all benefits to be furnished later under                                                   
11 AS 23.30.095 as estimated by the board; the amounts so computed and                                                     
12 estimated shall be retained by the employer as a trust fund to pay compensation                                         
13 and the cost of benefits as they become due and to pay any finally remaining                                            
14            excess sum to the person entitled to compensation or to the representative; and                              
15 (2)  the employer shall pay any excess to the person entitled to                                                        
16       compensation or to the representative of that person.                                                             
17    * Sec. 5. AS 23.30.070(a) is amended to read:                                                                      
18 (a)  Within 10 days from the date the employer has knowledge of an injury or                                            
19 death or from the date the employer has knowledge of a disease or infection, alleged                                    
20 by the employee or on behalf of the employee to have arisen out of and in the course                                    
21 of the employment, the employer shall file with [SEND TO] the division a report                                     
22       setting out                                                                                                       
23                 (1)  the name, address, and business of the employer;                                                   
24                 (2)  the name, address, and occupation of the employee;                                                 
25                 (3)  the cause and nature of the alleged injury or death;                                               
26 (4)  the year, month, day, and hour when and the particular locality                                                    
27       where the alleged injury or death occurred; and                                                                   
28                 (5)  the other information that the division may require.                                               
29    * Sec. 6. AS 23.30.070(b) is amended to read:                                                                      
30 (b)  Additional reports with respect to the injury and to the condition of the                                          
31 employee shall be filed [SENT] by the employer with [TO] the division at the times                              
01       and in the manner that the director prescribes.                                                                   
02    * Sec. 7. AS 23.30.070(d) is amended to read:                                                                      
03            (d)  Filing [MAILING] of the report with [AND A COPY TO] the division in                         
04       a format prescribed by the director [IN A STAMPED ENVELOPE], within the                                       
05       time prescribed in (a) or (b) of this section, is compliance with this section.                                   
06    * Sec. 8. AS 23.30.070(f) is amended to read:                                                                      
07 (f)  An employer who fails or refuses to file [SEND] a report required of the                                       
08 employer by this section or who fails or refuses to file [SEND] the report required by                              
09 (a) of this section within the time required shall, if so required by the board, pay the                                
10 employee or the legal representative of the employee or other person entitled to                                        
11 compensation by reason of the employee's injury or death an additional award equal to                                   
12 20 percent of the amounts that were unpaid when due. The award shall be against                                         
13       either the employer or the insurance carrier, or both.                                                            
14    * Sec. 9. AS 23.30.075(b) is repealed and reenacted to read:                                                     
15 (b)  If an employer is a corporation, limited liability company, or limited                                             
16 liability partnership, corporate executive officers or members or partners who have at                                  
17 least a 10 percent ownership in the business entity shall be personally, jointly, and                                   
18 severally liable together with the business entity for the payment of all compensation                                  
19 or other benefits for which the business entity is liable under this chapter if the                                     
20 business entity is not insured or qualified as a self-insurer at the time of the injury or                              
21 death. If an employer is a corporation, limited liability company, or limited liability                                 
22 partnership, corporate executive officers, or members or partners who have at least a                                   
23 10 percent ownership in the business entity shall be personally, jointly, and severally                                 
24 liable together with the business entity for the payment of a civil penalty under                                       
25       AS 23.30.080 for which the business entity is liable.                                                             
26    * Sec. 10. AS 23.30.080(e) is amended to read:                                                                     
27 (e)  If a representative of the department investigates an employer's failure to                                        
28 file the evidence of compliance required by AS 23.30.085 and, after investigation,                                      
29 there is substantial evidence that the employer failed to insure or provide security as                                 
30 required by AS 23.30.075, the representative shall inform the employer. The                                             
31 representative may request the director to issue a stop order prohibiting the use of                                    
01 employee labor by the employer until the employer insures or provides security as                                       
02 required by AS 23.30.075. The director may issue a stop order, without a hearing,                                       
03 based on the representative's investigation. The director shall dissolve a stop order                                   
04 issued under this subsection upon receipt of substantial evidence that the employer is                                  
05 insured or has provided security as required by AS 23.30.075(a). If an employer fails                                   
06 to comply with a stop order issued under this subsection, the division may [PETITION                                    
07 THE BOARD TO ASSESS A CIVIL PENALTY. THE BOARD MAY] assess a civil                                                      
08 penalty of $1,000 a day. An employer who is assessed a penalty under this subsection                                    
09 may not obtain a public contract with the state or a political subdivision of the state for                             
10       the three years following violation of the stop order.                                                            
11    * Sec. 11. AS 23.30.080(f) is repealed and reenacted to read:                                                      
12 (f)  If an employer fails to insure or provide security as required by                                                  
13 AS 23.30.075 or is underinsured as result of misclassifying employees or engaging in                                    
14 deceptive leasing practices as defined in AS 23.30.250, the division may assess a civil                                 
15 penalty of up to three times the workers' compensation insurance premium that the                                       
16 employer would have paid if the employer had insured, provided the required security                                    
17 or properly classified employees. The division shall calculate the premium based on                                     
18 the employer's payroll and the assigned risk rates approved by the division of                                          
19 insurance in effect at the time the employer was uninsured or underinsured. The                                         
20 division shall apply aggravating and mitigating factors adopted in regulation to set the                                
21 penalty amount. Notwithstanding AS 23.30.250(e), a civil penalty under this                                             
22 subsection may be assessed against an employer that misclassifies employees or                                          
23 engages in deceptive leasing practices, even if the employer does not do so knowingly                                   
24 and with the purpose of evading full payment for workers' compensation insurance                                        
25       premiums.                                                                                                         
26    * Sec. 12. AS 23.30.080(g) is amended to read:                                                                     
27 (g)  The [IF AN EMPLOYER FAILS TO PAY A CIVIL PENALTY ORDER                                                         
28 ISSUED UNDER (D), (E), OR (F) OF THIS SECTION WITHIN SEVEN DAYS                                                         
29 AFTER THE DATE OF SERVICE OF THE ORDER UPON THE EMPLOYER,                                                               
30 THE] director may declare an [THE] employer in default if the employer (1) fails to                             
31 pay or contest a civil penalty assessed under this section not later than 30 days                                   
01 after the date of service of notice on the employer; (2) fails to pay a civil penalty                               
02 not later than 30 days after the board orders payment; or (3) fails to pay a civil                                  
03 penalty in accordance with the terms of a payment plan. The director shall file a                                   
04 certified copy of the penalty order, notice, or payment plan, and declaration of                                    
05 default with the clerk of the superior court. The court shall, upon the filing of the copy                              
06 [OF THE ORDER] and declaration, enter judgment for the amount declared in default                                       
07 if it is in accordance with law. Anytime after a declaration of default, the attorney                                   
08 general shall, when requested to do so by the director, take appropriate action to                                      
09 ensure collection of the defaulted payment. Review of the judgment may be had as                                        
10 provided under the Alaska Rules of Civil Procedure. Final proceedings to execute the                                    
11       judgment may be had by writ of execution.                                                                         
12    * Sec. 13. AS 23.30.080 is amended by adding new subsections to read:                                              
13 (h)  If the division requests copies of records required to be kept under                                               
14 AS 23.05.080 or information relating to an investigation of an employer's compliance                                    
15 with the insurance provisions of this chapter, and the employer does not provide the                                    
16 requested records or information not later than 30 days after service of the written                                    
17 request, the division may assess a civil penalty against the employer of $150 for each                                  
18       day the employer is late, up to a maximum penalty of $10,000.                                                     
19 (i)  A civil penalty assessed under this section may not be suspended in full or                                        
20       in part.                                                                                                          
21 (j)  The division and an employer may agree to a payment plan for a civil                                               
22 penalty assessed under this section. The board in reviewing an assessed civil penalty                                   
23 under (k) of this section may order a payment plan. Interest under any payment plan                                     
24 shall accrue at the rate specified in AS 09.30.070(a) that is in effect on the date the                                 
25       payment plan was agreed to or ordered.                                                                            
26 (k)  An employer may contest a civil penalty assessed by the division under                                             
27 (e), (f), or (h) of this section by filing a petition with the board not later than 30 days                             
28 after the notice of the civil penalty is served on the employer. The board shall schedule                               
29 a prehearing not later than 30 days after the filing date of the petition for the purpose                               
30 of setting a hearing date. The failure of an employer to file evidence of compliance as                                 
31 required by AS 23.30.085 creates a rebuttable presumption that the employer failed to                                   
01 insure or provide security as required by AS 23.30.075. If the employer disputes the                                    
02 division's calculation of the amount that the employer would have paid for workers'                                     
03 compensation insurance during the time the employer was uninsured or underinsured,                                      
04 the employer bears the burden of producing evidence and proving that the workers'                                       
05 compensation insurance premium would have been less than the division's calculation.                                    
06 If the employer does not timely file the petition and cannot show good cause for any                                    
07 late filing of the petition, the assessment of the civil penalty is considered final and not                            
08       subject to review by the board or a court.                                                                        
09    * Sec. 14. AS 23.30.082(a) is amended to read:                                                                     
10 (a)  The workers' compensation benefits guaranty fund is established in the                                             
11 general fund to carry out the purposes of this section. The fund is composed of (1)                                 
12 civil penalty and interest payments made by employers under AS 23.30.080; (2) civil                             
13 penalty payments under AS 23.30.085; (3) [,] income earned on investment of the                                     
14 money in the fund; (4) [,] money deposited in the fund by the department; [,] and (5)                       
15 appropriations to the fund, if any. However, money appropriated to the fund does not                                    
16 lapse. Amounts in the fund may be appropriated for claims against the fund, for                                         
17       expenses directly related to fund operations and claims, and for legal expenses.                                  
18    * Sec. 15. AS 23.30.085 is repealed and reenacted to read:                                                         
19 Sec. 23.30.085. Duty of employer or insurer to file evidence of compliance.                                           
20 (a) An employer or insurer subject to this chapter shall initially file evidence of                                     
21 compliance with the insurance provisions of this chapter with the division, in the                                      
22 format prescribed by the director, not later than 30 days after acquiring insurance. The                                
23 employer or insurer also shall file evidence of compliance not later than 30 days after                                 
24 the termination of the employer's insurance by expiration or cancellation. The                                          
25 requirements in this section do not apply to an employer who has certification from                                     
26 the division of the employer's financial ability to pay compensation directly without                                   
27       insurance.                                                                                                      
28 (b)  If an employer or insurer fails, refuses, or neglects to comply with this                                          
29 section, the employer or insurer shall be subject to a civil penalty of $100 for each day                               
30 the employer or insurer is late. Total penalties under this subsection shall not exceed                                 
31 $1,000 for each late filing and $10,000 for each employer or insurer each year for late                                 
01       filings under this section.                                                                                       
02    * Sec. 16. AS 23.30.097(d) is amended to read:                                                                   
03 (d)  An employer shall pay or controvert an employee's bills for medical                                            
04 treatment under this chapter, excluding prescription charges or transportation for                                      
05 medical treatment, not later than [WITHIN] 30 days after the date that the employer                                 
06 receives the provider's bill or a completed report as required by AS 23.30.095(c),                                      
07 whichever is later. An employer shall authorize or controvert medical treatment                                     
08 or services, excluding prescriptions or transportation for medical treatment, not                                   
09 later than 60 days after an employer receives the provider's written request for                                    
10       medical treatment, including the estimated cost.                                                              
11    * Sec. 17. AS 23.30.098 is amended to read:                                                                        
12 Sec. 23.30.098. Regulations. Under AS 44.62.245(a)(2), in adopting or                                                 
13 amending regulations under this chapter, the department may incorporate future                                          
14 amended versions of a document or reference material incorporated by reference if the                                   
15       document or reference material is one of the following:                                                           
16 (1)  Current Procedural Terminology Codes, produced by the American                                                     
17       Medical Association;                                                                                              
18 (2)  Healthcare Common Procedure Coding System, produced by the                                                         
19 federal Centers for Medicare and Medicaid Services [AMERICAN MEDICAL                                                
20       ASSOCIATION];                                                                                                     
21 (3)  International Classification of Diseases, published by the World                                               
22       Health Organization [AMERICAN MEDICAL ASSOCIATION];                                                           
23 (4)  Relative Value Guide, produced by the American Society of                                                          
24       Anesthesiologists;                                                                                                
25 (5)  Diagnostic and Statistical Manual of Mental Disorders, produced                                                    
26       by the American Psychiatric Association;                                                                          
27 (6)  Current Dental Terminology, published by the American Dental                                                       
28       Association;                                                                                                      
29 (7)  Resource-Based Relative Value Scale, produced by the federal                                                       
30       Centers for Medicare and Medicaid Services;                                                                       
31 (8)  Ambulatory Payment Classifications, produced by the federal                                                        
01       Centers for Medicare and Medicaid Services; [OR]                                                                  
02                 (9)  Medicare Severity Diagnosis Related Groups, produced by the                                        
03       federal Centers for Medicare and Medicaid Services;                                                           
04                 (10)  International Classification of Diseases, Tenth Revision,                                     
05       Clinical Modification, developed by the National Center for Health Statistics;                                
06                 (11)  Clinical Diagnostic Laboratory Services, produced by the                                      
07       federal Centers for Medicare and Medicaid Services;                                                           
08                 (12)  Durable Medical Equipment, Prosthetics, Orthotics, and                                        
09       Supplies, produced by the federal Centers for Medicare and Medicaid Services;                                 
10 (13)  Payment Allowance Limits for Medicare Part B Drugs,                                                           
11 Average Sale Price, produced by the federal Centers for Medicare and Medicaid                                       
12       Services;                                                                                                     
13 (14)  Ambulance Fee Schedule, produced by the federal Centers for                                                   
14       Medicare and Medicaid Services;                                                                               
15 (15)  Hospital Outpatient Prospective Payment System, produced                                                      
16       by the federal Centers for Medicare and Medicaid Services; or                                                 
17 (16)  Ambulatory Surgical Center Payment System, produced by                                                        
18       the federal Centers for Medicare and Medicaid Services.                                                       
19    * Sec. 18. AS 23.30.110(c) is repealed and reenacted to read:                                                      
20 (c)  The board shall schedule a prehearing not later than 30 days after a claim                                         
21 is filed. At the prehearing, the board or the board's designee shall issue a scheduling                                 
22 order that includes a discovery plan and appropriate deadlines, and a date for the                                      
23 hearing. The board or the board's designee may modify the scheduling order, including                                   
24 changing the hearing date, on the board's own motion, if the parties agree to the                                       
25 modification, or upon a showing of good cause by the party seeking the modification.                                    
26       The board shall serve notice on each party at least 10 days before the hearing.                                   
27    * Sec. 19. AS 23.30.110(d) is amended to read:                                                                     
28 (d)  At the hearing, the claimant and the employer may each present evidence                                        
29 in respect to the claim and may be self-represented, or represented by an attorney                              
30 licensed to practice law in this state or, for a person who is mentally incompetent,                                
31 a minor, or deceased, by a guardian or other representative appointed by a court.                                   
01 An employer is self-represented when acting through its insurer or the adjusting                                    
02 company handling the claim for the employer's insurer. The workers'                                                 
03 compensation benefits guaranty fund is self-represented when acting through its                                     
04 administrator or an adjusting company handling the claim under contract for the                                     
05 fund. The division is self-represented when acting through its investigators [ANY                                   
06       PERSON AUTHORIZED IN WRITING FOR THAT PURPOSE].                                                                   
07    * Sec. 20. AS 23.30.110 is amended by adding a new subsection to read:                                             
08            (i)  The board shall file its decision not later than 30 days after the hearing                              
09       record closes.                                                                                                    
10    * Sec. 21. AS 23.30.155(a) is amended to read:                                                                     
11 (a)  Compensation under this chapter shall be paid periodically, promptly, and                                          
12 directly to the person entitled to it, without an award, except where liability to pay                                  
13 compensation is controverted by the employer. To controvert a claim, the employer                                       
14       must file a notice, in a format [ON A FORM] prescribed by the director, stating                               
15                 (1)  that the right of the employee to compensation is controverted;                                    
16                 (2)  the name of the employee;                                                                          
17                 (3)  the name of the employer;                                                                          
18                 (4)  the date of the alleged injury or death; and                                                       
19 (5)  the type of compensation and all grounds upon which the right to                                                   
20       compensation is controverted.                                                                                     
21    * Sec. 22. AS 23.30.155(b) is amended to read:                                                                     
22 (b)  The first installment of compensation, excluding medical benefits, shall                                       
23 be paid [BECOMES DUE] on or before the 21st[14TH] day after the employer has                                
24 knowledge of the injury or death. [ON THIS DATE, ALL COMPENSATION THEN                                                  
25 DUE SHALL BE PAID.] Subsequent compensation, excluding medical benefits,                                            
26 shall be paid in installments, every 21 [14] days, except where the board determines                                
27 that payment in installments should be made monthly or at some other period.                                            
28       Medical benefits shall be paid in accordance with AS 23.30.095 and 23.30.097.                                 
29    * Sec. 23. AS 23.30.155(c) is amended to read:                                                                   
30 (c)  The insurer or adjuster shall notify the division in a format [AND THE                                         
31 EMPLOYEE ON A FORM] prescribed by the director that the payment of                                                      
01 compensation has begun or has been increased, decreased, suspended, terminated,                                         
02 resumed, or changed in type. An initial report shall be filed not later than [WITH                                  
03 THE DIVISION AND SENT TO THE EMPLOYEE WITHIN] 28 days after the date                                                    
04 of issuing the first payment of compensation. If at any time 21 days or more pass and                                   
05 no compensation payment is issued, a report notifying the division [AND THE                                             
06 EMPLOYEE] of the termination or suspension of compensation shall be filed not                                       
07 later than [WITH THE DIVISION AND SENT TO THE EMPLOYEE WITHIN] 28                                                   
08 days after the date the last compensation payment was issued. A report shall also be                                    
09 filed not later than [WITH THE DIVISION AND SENT TO THE EMPLOYEE                                                    
10 WITHIN] 28 days after the date of issuing a payment increasing, decreasing,                                             
11 resuming, or changing the type of compensation paid. If the division is [AND THE                                    
12 EMPLOYEE ARE] not notified within the 28 days prescribed by this subsection for                                         
13 reporting, the insurer or adjuster shall pay a civil penalty of $100 for the first day plus                             
14 $10 for each day after the first day that the notice was not given. Total penalties under                               
15 this subsection may not exceed $1,000 for a failure to file a required report. Penalties                                
16 assessed under this subsection are eligible for reduction under (m) of this section. A                                  
17 penalty assessed under this subsection after penalties have been reduced under (m) of                                   
18 this section shall be increased by 25 percent and shall bear interest at the rate                                       
19       established under AS 45.45.010.                                                                                   
20    * Sec. 24. AS 23.30.155(d) is amended to read:                                                                   
21 (d)  If the employer controverts the right to compensation, the employer shall                                          
22 file with the division, in a format prescribed by the director, [AND SEND TO THE                                    
23 EMPLOYEE] a notice of controversion on or before the 21st day after the employer                                        
24 has knowledge of the alleged injury or death. If the employer controverts the right to                                  
25 compensation, excluding medical benefits, after payments have begun, the employer                                   
26 shall file with the division, in a format prescribed by the director, [AND SEND TO                                  
27 THE EMPLOYEE] a notice of controversion not later than the date [WITHIN                                             
28 SEVEN DAYS AFTER] an installment of compensation payable without an award is                                            
29 due under (b) of this section. If the employer controverts medical treatment, the                                   
30 employer shall file with the division, in a format prescribed by the director, a                                    
31 notice of controversion not later than when the payment, reimbursement, or                                          
01 authorization for medical treatment is due under AS 23.30.097. When payment of                                      
02 temporary disability benefits is controverted solely on the grounds that another                                        
03 employer or another insurer of the same employer may be responsible for all or a                                        
04 portion of the benefits, the most recent employer or insurer who is party to the claim                                  
05 and who may be liable shall make the payments during the pendency of the dispute.                                       
06 When a final determination of liability is made, any reimbursement required, including                                  
07 interest at the statutory rate, and all costs and attorney fees incurred by the prevailing                              
08       employer, shall be made not later than [WITHIN] 14 days after the determination.                            
09    * Sec. 25. AS 23.30.155(e) is amended to read:                                                                     
10 (e)  If any installment of compensation, excluding medical benefits, payable                                        
11 without an award is [NOT] paid late [WITHIN SEVEN DAYS AFTER IT                                                     
12 BECOMES DUE], as provided in (b) of this section, there shall be added to the unpaid                                    
13 installment an amount equal to 25 percent of the installment. If a bill for medical                                 
14 treatment, including prescription charges or transportation for medical                                             
15 treatment, is paid or reimbursed late, or a request for medical treatment is not                                    
16 timely authorized as provided in AS 23.30.097, there shall be added an amount                                       
17 equal to 25 percent of the bill, reimbursement, or estimated cost of requested                                      
18 medical treatment. This additional amount shall be paid at the same time as, and in                                 
19 addition to, the installment, bill, or reimbursement, or sent with authorization for                                
20 medical treatment, unless notice is filed under (d) of this section or unless the                                   
21 nonpayment or late authorization is excused by the board after a showing by the                                     
22 employer that owing to conditions over which the employer had no control the                                            
23 installment, bill, or reimbursement could not be paid or the request could not be                               
24 authorized within the period prescribed for the payment or authorization. The                                   
25 additional amount shall be paid directly to the recipient to whom the unpaid                                            
26 installment, bill, or reimbursement was to be paid or, if authorization of medical                              
27       treatment was requested, to the employee seeking the medical treatment.                                       
28    * Sec. 26. AS 23.30.155(m) is amended to read:                                                                     
29 (m)  On or before March 1 of each year, the insurer or adjuster shall file a                                            
30 verified annual report in a format [ON A FORM] prescribed by the director stating                                 
31 the total amount of all compensation by type, the number of claims received and the                                     
01 percentage controverted, medical and related benefits, vocational rehabilitation                                        
02 expenses, legal fees, including a separate total of fees paid to attorneys and fees paid                                
03 for the other costs of litigation, and penalties paid on all claims during the preceding                                
04 calendar year. If the annual report is timely and complete when received by the                                         
05 division and provides accurate information about each category of payments, the                                         
06 director shall review the timeliness of the insurer's or adjuster's reports filed during the                            
07 preceding year under (c) of this section. If, during the preceding year, the insurer or                                 
08 adjuster filed at least 99 percent of the reports on time, the penalties assessed under (c)                             
09 of this section shall be waived. If, during the preceding year, the insurer or adjuster                                 
10 filed at least 97 percent of the reports on time, 75 percent of the penalties assessed                                  
11 under (c) of this section shall be waived. If, during the preceding year, the insurer or                                
12 adjuster filed 95 percent of the reports on time, 50 percent of the penalties assessed                                  
13 under (c) of this section shall be waived. If, during the preceding year, the insurer's or                              
14 adjuster's reports have not been filed on time at least 95 percent of the time, none of                                 
15 the penalties assessed under (c) of this section shall be waived. The penalties that are                                
16 not waived are due and payable when the insurer or adjuster receives notification from                                  
17 the director regarding the timeliness of the reports. If the annual report is not filed by                              
18 March 1 of each year, the insurer or adjuster shall pay a civil penalty of $100 for the                                 
19 first day the annual report is late and $10 for each additional day the report is late. If                              
20 the annual report is incomplete when filed, the insurer or adjuster shall pay a civil                                   
21       penalty of $1,000.                                                                                                
22    * Sec. 27. AS 23.30.155(q) is amended to read:                                                                     
23 (q)  Compensation [UNLESS COMPENSATION] due the employee under                                                      
24 this chapter must be [IS] paid by negotiable instrument that is drawn on a state or                                 
25 federal financial institution, by prepaid debit card, or by electronic funds transfer                               
26 [THE EMPLOYER SHALL INCREASE THE WEEKLY RATE OF                                                                         
27 COMPENSATION DUE THE EMPLOYEE UNDER AS 23.30.175 BY TWO                                                                 
28       PERCENT].                                                                                                         
29    * Sec. 28. AS 23.30.165(a) is amended to read:                                                                     
30 (a)  If an [EACH] employee, a [AND] beneficiary, or the workers'                                            
31 compensation benefits guaranty fund is entitled to compensation under the                                           
01 provisions of this chapter, the person or the fund has a lien for the full amount of the                            
02 compensation the person or the fund is entitled to, including costs and disbursements                               
03 of suit and attorney fees allowed, on [UPON] all of the property in connection with                                 
04 the construction, preservation, maintenance, or operation of which the work of the                                      
05 employee was being performed at the time of the injury or death. For example: in the                                    
06 case of an employee injured or killed while engaged in mining or in work connected                                      
07 with mining, the lien extends to the entire mine and all property used in connection                                    
08 with it; and in the case of an employee injured or killed while engaged in fishing or in                                
09 the packing, canning, or salting of fish, or other branch of the fish industry, the lien                                
10 extends to the entire packing, fishing, salting, or canning plant or establishment and all                              
11 property used in connection with it; and this is the case with other businesses,                                        
12 industries, works, occupations, and employments. If the workers' compensation                                       
13 benefits guaranty fund is entitled to a civil penalty assessed under AS 23.30.080,                                  
14 the fund has a lien for the full amount of the civil penalty on all of the property in                              
15 connection with the construction, preservation, maintenance, or operation of the                                    
16       uninsured or underinsured employer.                                                                           
17    * Sec. 29. AS 23.30.165(d) is amended to read:                                                                     
18 (d)  A person or the workers' compensation benefits guaranty fund                                                   
19 claiming a lien under this chapter shall, not later than [WITHIN] one year after the                                
20 date of the injury from which the claim of compensation arises, record in the office of                                 
21 the recorder of the recording district in which the property affected by the lien is                                    
22 located a notice of lien signed and verified by the claimant, [OR] someone on behalf                                
23 of the claimant, or the fund, and stating [, IN SUBSTANCE,] the name of the person                                  
24 injured or killed out of which injury or death the claim of compensation arises, the                                    
25 name of the employer of the injured or deceased person at the time of the injury or                                     
26 death, a description of the property affected or covered by the lien, and the name of                                   
27 the owner or reputed owner of the property. In claiming a lien for a civil penalty                                  
28 under AS 23.30.080, the workers' compensation benefits guaranty fund shall, not                                     
29 later than one year after the date of a declaration of default, record in the office                                
30 of the recorder of the recording district in which the property affected by the lien                                
31 is located a signed and verified notice of lien stating the name of the employer                                    
01       assessed a civil penalty under AS 23.30.080, a description of the property affected                           
02       or covered by the lien, and the name of the owner or reputed owner of the                                     
03       property.                                                                                                     
04    * Sec. 30. AS 23.30.205 is amended by adding a new subsection to read:                                             
05 (g)  Claims for reimbursement may not be submitted to the second injury fund                                            
06 after September 1, 2017. The fund shall continue to make reimbursement payments on                                      
07 claims accepted before July 1, 2018, or ordered by the board, until the fund's liabilities                              
08       for the claim are extinguished.                                                                                   
09    * Sec. 31. AS 23.30.230(a) is amended to read:                                                                     
10            (a)  The following persons are not covered by this chapter:                                                  
11                 (1)  a part-time baby-sitter;                                                                           
12                 (2)  a cleaning person;                                                                                 
13                 (3)  harvest help and similar part-time or transient help;                                              
14 (4)  a person employed as a sports official on a contractual basis and                                                  
15 who officiates only at sports events in which the players are not compensated; in this                                  
16 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper,                                           
17       timekeeper, organizer, or other person who is a neutral participant in a sports event;                            
18                 (5)  a person employed as an entertainer on a contractual basis;                                        
19                 (6)  a commercial fisherman, as defined in AS 16.05.940;                                                
20 (7)  an individual who drives a taxicab whose compensation and written                                                  
21 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours                                        
22 worked by the individual or the areas in which the individual may work are restricted                                   
23       except to comply with local ordinances;                                                                           
24 (8)  a participant in the Alaska temporary assistance program                                                           
25 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than                                     
26       subsidized or unsubsidized work or on-the-job training;                                                           
27 (9)  a person employed as a player or coach by a professional hockey                                                    
28 team if the person is covered under a health care insurance plan provided by the                                        
29 professional hockey team, the coverage is applicable to both work related and                                           
30 nonwork related injuries, and the coverage provides medical and related benefits as                                     
31 required under this chapter, except that coverage may not be limited to two years from                                  
01 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care                                  
02       insurance" has the meaning given in AS 21.12.050; [AND]                                                           
03 (10)  a person working as a qualified real estate licensee who performs                                                 
04 services under a written contract that provides that the person will not be treated as an                               
05 employee for federal income tax or workers' compensation purposes; in this                                              
06 paragraph, "qualified real estate licensee" means a person who is required to be                                        
07 licensed under AS 08.88.161 and whose payment for services is directly related to                                       
08       sales or other output rather than the number of hours worked; and                                             
09 (11)  a person employed as an independent contractor; a person is                                                   
10       an independent contractor only if the person                                                                  
11 (A)  maintains a licensed business, the success or                                                                  
12 profitability of which does not depend exclusively or primarily on the                                              
13            individual for whom or the entity for which services are performed;                                      
14 (B)  has a federal employer identification number issued by                                                         
15 the Internal Revenue Service or has filed business or self-employment                                               
16 income tax returns with the Internal Revenue Service the previous tax                                               
17 year, or, for a new business that was not operating in the previous tax                                             
18 year, intends to file business or self-employment tax returns with the                                              
19            Internal Revenue Service;                                                                                
20                      (C)  has an express contract to perform the services;                                          
21 (D)  maintains liability insurance or other insurance policies                                                      
22 necessary to protect the employees, financial interests, and customers of                                           
23            the person's business;                                                                                   
24 (E)  is free from direction and control over the means and                                                          
25 manner of providing services, subject only to the right of the individual                                           
26 for whom or entity for which the services are provided to specify the                                               
27            desired results, completion schedule, or range of work hours;                                            
28 (F)  is engaged in a trade, occupation, profession, or                                                              
29 business to provide services that are outside the usual course of business                                          
30 for the individual for whom or the entity for which the services are                                                
31            performed;                                                                                               
01                      (G)  incurs most of the expenses for materials, tools,                                         
02            equipment, labor, and other operational costs necessary for the person's                                 
03            business;                                                                                                
04                      (H)  has the opportunity for profit and may suffer loss based                                  
05            on the management of revenue and expenses with the person's business;                                    
06 (I)  does not work as part of a team of individuals or entities                                                     
07 on a singular task, such as painting a building or installing a roof, where                                         
08 the work performed by the person cannot be clearly isolated form the                                                
09            work performed by other individuals or entities;                                                         
10 (J)  hires, pays, controls, and fires any employees required                                                        
11            to perform the work for which the person was hired; and                                                  
12 (K)  maintains a business location separate from the                                                                
13 location of the individual for whom or the entity for which services are                                            
14            performed.                                                                                               
15    * Sec. 32. AS 23.30.240 is repealed and reenacted to read:                                                         
16 Sec. 23.30.240. Officers of corporations, municipal corporations, and                                                 
17 nonprofit corporations, and members of limited liability companies as employees.                                      
18 (a) Except as provided in (b) of this section, an executive officer elected or appointed                                
19 and empowered in accordance with the charter and bylaws of a corporation, or a                                          
20 member of a limited liability company organized under AS 10.50, is not an employee                                      
21 of the business entity under this chapter if the executive officer or member owns at                                    
22 least 10 percent of the business entity. Except as provided in (b) of this section, an                                  
23 executive officer of a municipal corporation or of a charitable, religious, educational,                                
24 or other nonprofit corporation is not an employee of the corporation under this                                         
25       chapter.                                                                                                          
26 (b)  Any type of corporation or limited liability company may bring an                                                  
27 executive officer, or a member exempted under (a) of this section, within the coverage                                  
28 of the business entity's insurance contract by specifically including the executive                                     
29 officer or member in the contract of insurance. The election to bring the executive                                     
30 officer or member within the business entity's coverage continues in force for the                                      
31 period the contract of insurance is in effect. During that period, an executive officer or                              
01 a member brought within the coverage of the insurance contract is an employee of the                                    
02       business entity under this chapter.                                                                               
03    * Sec. 33. AS 23.30.247(c) is amended to read:                                                                     
04 (c)  This section may not be construed to prohibit an employer from requiring a                                         
05 prospective employee to fill out a preemployment questionnaire or application                                           
06 regarding the person's prior health or disability history as long as it is meant to                                     
07 [EITHER DOCUMENT WRITTEN NOTICE FOR SECOND INJURY FUND                                                                  
08 REIMBURSEMENT UNDER AS 23.30.205(c) OR] determine whether the employee                                                  
09 has the physical or mental capacity to meet the documented physical or mental                                           
10       demands of the work.                                                                                              
11    * Sec. 34. AS 23.30.250(a) is amended to read:                                                                     
12 (a)  A person who (1) knowingly makes a false or misleading statement,                                                  
13 representation, or submission, or knowingly fails to report a material fact related to                              
14 a benefit under this chapter; (2) knowingly assists, abets, solicits, or conspires in                                   
15 making a false or misleading submission affecting the payment, coverage, or other                                       
16 benefit under this chapter; (3) knowingly misclassifies employees or engages in                                         
17 deceptive leasing practices for the purpose of evading full payment of workers'                                         
18 compensation insurance premiums; or (4) employs or contracts with a person or firm                                      
19 to coerce or encourage an individual to file a fraudulent compensation claim is civilly                                 
20 liable to a person adversely affected by the conduct, is guilty of theft by deception as                                
21 defined in AS 11.46.180, and may be punished as provided by AS 11.46.120 -                                              
22 11.46.150. The division may assess a civil penalty as provided in AS 23.30.080                                      
23 against an employer that misclassifies employees or engages in deceptive leasing                                    
24       practices.                                                                                                    
25    * Sec. 35. AS 23.30.250(b) is amended to read:                                                                     
26 (b)  If the board, after a hearing, finds that a person has obtained compensation,                                      
27 medical treatment, or another benefit provided under this chapter, or that a provider                                   
28 has received a payment, by knowingly making a false or misleading statement or                                          
29 representation, or knowingly failing to report a material fact [FOR THE PURPOSE                                     
30 OF OBTAINING THAT BENEFIT], the board shall order that person to make full                                              
31 reimbursement of the cost of all benefits obtained. Upon entry of an order authorized                                   
01 under this subsection, the board shall also order that person to pay all reasonable costs                               
02 and attorney fees incurred by the employer and the employer's carrier in obtaining an                                   
03 order under this section and in defending any claim made for benefits under this                                        
04 chapter. If a person fails to comply with an order of the board requiring reimbursement                                 
05 of compensation and payment of costs and attorney fees, the employer may declare the                                    
06 person in default and proceed to collect any sum due as provided under                                                  
07       AS 23.30.170(b) and (c).                                                                                          
08    * Sec. 36. AS 23.30.250 is amended by adding new subsections to read:                                              
09 (d)  While receiving compensation provided under this chapter, an employee                                              
10 shall inform the employer or insurer of the employee's receipt of any unemployment                                      
11 or disability benefits other than the compensation provided under this chapter, and                                     
12 shall report any employment other than work for the employer providing the                                              
13 compensation under this chapter. An employee knowingly fails to report a material                                       
14 fact under (a) and (b) of this section if the employee does not disclose the receipt of                                 
15 unemployment or other disability benefits, or other employment, and the employee                                        
16 knowingly receives compensation under this chapter that the employee is not entitled                                    
17 to because of the receipt of the other benefits or other employment. In this subsection,                                
18       "employment" means any type of work, whether paid or unpaid.                                                      
19 (e)  An employer misclassifies employees or engages in deceptive leasing                                                
20 practices under (a) of this section if, for the purpose of evading full payment of                                      
21 workers' compensation insurance premiums, the employer knowingly falsifies or                                           
22       misrepresents the                                                                                                 
23                 (1)  job duties of employees;                                                                           
24 (2)  payments made to employees, including concealing payment by not                                                    
25       reporting or underreporting wages or payments made in kind;                                                       
26                 (3)  true identity of the employer;                                                                     
27                 (4)  nature of the employer's business;                                                                 
28 (5)  the employer's history of injuries or deaths covered under this                                                    
29       chapter; or                                                                                                       
30 (6)  number of employees, including by misclassifying a worker as an                                                    
31 independent contractor or as a nonemployee when that worker is an employee covered                                      
01       under this chapter as provided in AS 23.30.230, 23.30.239, 23.30.240, or 23.30.395.                               
02    * Sec. 37. AS 23.30.255(a) is amended to read:                                                                     
03 (a)  An employer required to secure the payment of compensation under this                                              
04 chapter who fails to do so is guilty of a class B felony if the amount involved exceeds                                 
05 $25,000 or a class C felony if the amount involved is $25,000 or less. If the employer                                  
06 is a limited liability company, limited liability partnership, or corporation, the                              
07 members or partners who have at least a 10 percent ownership interest in the                                        
08 business entity, or the corporate executive officers [ITS PRESIDENT,                                                
09 SECRETARY, AND TREASURER] are also severally liable to the fine or                                                      
10 imprisonment imposed for the failure of the business entity [CORPORATION] to                                        
11 secure the payment of compensation. [THE PRESIDENT, SECRETARY, AND                                                      
12 TREASURER, ARE SEVERALLY PERSONALLY LIABLE, JOINTLY WITH THE                                                            
13 CORPORATION, FOR THE COMPENSATION OR OTHER BENEFIT WHICH                                                                
14 ACCRUES UNDER THIS CHAPTER IN RESPECT TO AN INJURY WHICH                                                                
15 HAPPENS TO AN EMPLOYEE OF THE CORPORATION WHILE IT HAS                                                                  
16 FAILED TO SECURE THE PAYMENT OF COMPENSATION AS REQUIRED BY                                                             
17       AS 23.30.075.]                                                                                                    
18    * Sec. 38. AS 23.30.255(b) is amended to read:                                                                     
19 (b)  An employer who knowingly transfers, sells, encumbers, assigns, or in any                                          
20 manner disposes of, conceals, secretes, or destroys any property after one of the                                       
21 employer's employees has been injured within the scope of this chapter, with intent to                                  
22 avoid the payment of compensation under this chapter to the employee or the                                             
23 employee's dependents, is guilty of a class B felony if the amount involved exceeds                                     
24 $25,000 or a class C felony if the amount involved is $25,000 or less. If the employer                                  
25 is a limited liability company, limited liability partnership, or corporation, the                              
26 members or partners who have at least a 10 percent ownership interest, or the                                       
27 corporate executive officers [ITS PRESIDENT, SECRETARY, AND                                                         
28 TREASURER] are also severally liable to the penalty of imprisonment as well as                                          
29       jointly liable with the business entity [CORPORATION] for the fine.                                           
30    * Sec. 39. AS 23.30.260 is amended by adding a new subsection to read:                                             
31 (c)  Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is                                         
01 not required if the parties who reach an agreement in regard to a claim for injury or                                   
02 death under this chapter agree to the payment of attorney fees, and the agreement in                                    
03 regard to a claim for injury or death does not require board approval under                                             
04       AS 23.30.012.                                                                                                     
05    * Sec. 40. AS 23.30.395(19) is repealed and reenacted to read:                                                     
06                 (19)  "employee" means a person who is not an independent contractor                                    
07       as defined in AS 23.30.230 and who, under a contract of hire, express or implied, is in                           
08       the service of an employer as defined in (20) of this section;                                                    
09    * Sec. 41. AS 23.30.015(c), 23.30.040, 23.30.205, 23.30.395(35); and AS 37.05.146(c)(12)                           
10 are repealed.                                                                                                           
11    * Sec. 42. AS 23.30.040(f), 23.30.080(d), and 23.30.110(h) are repealed.                                           
12    * Sec. 43. The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14 APPLICABILITY. (a) AS 23.30.110(c), as repealed and reenacted by sec. 18 of this                                        
15 Act, and AS 23.30.110(h), as repealed in sec. 42 of this Act, apply to claims filed on or after                         
16 the effective date of this Act. Claims pending on the effective date of this Act shall be                               
17 continued and completed under AS 23.30.110(c) and 23.30.110(h), as those statutes read on                               
18 the day before the effective date of this Act.                                                                          
19 (b)  Notwithstanding AS 23.30.075(b), as amended by sec. 9 of this Act, AS 23.30.080                                    
20 as amended by secs. 10, 11, 12 and 13 of this Act, and AS 23.30.080(d), as repealed by sec.                             
21 42 of this Act, the division of workers' compensation's petitions against employers for a                               
22 failure to insure for workers' compensation liability that are pending before Workers'                                  
23 Compensation Board before the effective date of this Act shall be continued and completed                               
24 under AS 23.30.075(b) and AS 23.30.080, as those statutes read on the day before the                                    
25 effective date of this Act.                                                                                             
26    * Sec. 44. The uncodified law of the State of Alaska is amended by adding a new section to                         
27 read:                                                                                                                   
28 TRANSITION: IMPLEMENTATION OF REPEAL OF SECOND INJURY FUND.                                                             
29 The balance of the second injury fund created by former AS 23.30.040 shall be transferred to                            
30 the general fund on the effective date of this section.                                                                 
31    * Sec. 45. The uncodified law of the State of Alaska is amended by adding a new section to                         
01 read:                                                                                                                   
02 TRANSITION: REGULATIONS. The Department of Labor and Workforce                                                          
03 Development and the Workers' Compensation Board may adopt regulations to implement this                                 
04 Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not                                 
05 before the effective date of the law implemented by the regulation.                                                     
06    * Sec. 46. The uncodified law of the State of Alaska is amended by adding a new section to                         
07 read:                                                                                                                   
08       CONDITIONAL EFFECT NOTIFICATION (a). Sections 2, 4, 33, 41, and 44 of this                                        
09 Act take effect only if the commissioner of labor and workforce development notifies the                                
10 revisor of statutes and the lieutenant governor in writing as required under (b) of this section.                       
11 (b)  The commissioner of labor and workforce development shall notify the revisor of                                    
12 statutes and the lieutenant governor in writing of the date that all liability for previously                           
13 accepted claims to the second injury fund under AS 23.30.205, and claims ordered to be paid                             
14 from that fund, have been satisfied.                                                                                    
15    * Sec. 47. If, under sec. 46 of this Act, secs. 2, 4, 33, 41, and 44 of this Act take effect, they                 
16 take effect on the day after the commissioner of labor and workforce development makes the                              
17 notification required under sec. 46 of this Act.                                                                        
18    * Sec. 48. Sec. 45 of this Act takes effect immediately under AS 01.10.070(c).