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