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CSHB 79(JUD): "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(JUD)                                                                     
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, a person who, at the time of an employee's injury or death, has at                               
08 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; or                                                                                                  
11 (14)  Ambulance Fee Schedule, produced by the federal Centers for                                                   
12       Medicare and Medicaid Services.                                                                               
13    * Sec. 16. AS 23.30.110(c) is repealed and reenacted to read:                                                      
14 (c)  The board shall schedule a prehearing not later than 30 days after a claim                                         
15 is filed. At the prehearing, the board or the board's designee shall issue a scheduling                                 
16 order that includes a discovery plan, appropriate deadlines, and the hearing date. The                                  
17 board or the board's designee may modify the scheduling order, including changing                                       
18 the hearing date, on the board's own motion or upon a showing of good cause by the                                      
19 party seeking the modification. The board shall serve notice on each party at least 10                                  
20       days before the hearing.                                                                                          
21    * Sec. 17. AS 23.30.110(d) is repealed and reenacted to read:                                                      
22 (d)  At the hearing, each party may present evidence with respect to the claim                                          
23 and may be self-represented, or represented by an attorney licensed to practice law in                                  
24       this state, a parent if the party is a minor, guardian, or court-appointed representative.                        
25    * Sec. 18. AS 23.30.110 is amended by adding a new subsection to read:                                             
26 (i)  The board shall file its decision not later than 30 days after the hearing                                         
27       record closes.                                                                                                    
28    * Sec. 19. AS 23.30.155(a) is amended to read:                                                                     
29 (a)  Compensation under this chapter shall be paid periodically, promptly, and                                          
30 directly to the person entitled to it, without an award, except where liability to pay                                  
31 compensation is controverted by the employer. To controvert a claim, the employer                                       
01       must file a notice, in a format [ON A FORM] prescribed by the director, stating                               
02                 (1)  that the right of the employee to compensation is controverted;                                    
03                 (2)  the name of the employee;                                                                          
04                 (3)  the name of the employer;                                                                          
05                 (4)  the date of the alleged injury or death; and                                                       
06                 (5)  the type of compensation and all grounds on [UPON] which the                                   
07       right to compensation is controverted.                                                                            
08    * Sec. 20. AS 23.30.155(b) is amended to read:                                                                     
09            (b)  The first installment of compensation, excluding medical benefits, shall                            
10 be paid [BECOMES DUE] on or before the 14th day after the employer has                                          
11 knowledge of the injury or death. [ON THIS DATE ALL COMPENSATION THEN                                                   
12 DUE SHALL BE PAID.] Subsequent compensation, excluding medical benefits,                                            
13 shall be paid in installments, every 14 days, except where the board determines that                                    
14 payment in installments should be made monthly or at some other period. If an                                       
15 installment of compensation due under this subsection is not paid within 14 days,                                   
16 a grace period will not be allowed and an additional amount will become due                                         
17 under (e) of this section. Medical benefits shall be paid in accordance with                                        
18       AS 23.30.095 and 23.30.097.                                                                                   
19    * Sec. 21. AS 23.30.155(c) is amended to read:                                                                     
20 (c)  The insurer or adjuster shall notify the division in a format [AND THE                                         
21 EMPLOYEE ON A FORM] prescribed by the director that the payment of                                                      
22 compensation has begun or has been increased, decreased, suspended, terminated,                                         
23 resumed, or changed in type. An initial report shall be filed not later than [WITH                                  
24 THE DIVISION AND SENT TO THE EMPLOYEE WITHIN] 28 days after the date                                                    
25 of issuing the first payment of compensation. If, at any time, 21 days or more pass and                         
26 no compensation payment is issued, a report notifying the division [AND THE                                             
27 EMPLOYEE] of the termination or suspension of compensation shall be filed not                                       
28 later than [WITH THE DIVISION AND SENT TO THE EMPLOYEE WITHIN] 28                                                   
29 days after the date the last compensation payment was issued. A report shall also be                                    
30 filed not later than [WITH THE DIVISION AND SENT TO THE EMPLOYEE                                                    
31 WITHIN] 28 days after the date of issuing a payment increasing, decreasing,                                             
01 resuming, or changing the type of compensation paid. When the insurer or adjuster                                   
02 files a report, the division shall notify the employee of the payment or change in                                  
03 payment of compensation. If the division is [AND THE EMPLOYEE ARE] not                                          
04 notified within the 28 days prescribed by this subsection for reporting, the insurer or                                 
05 adjuster shall pay a civil penalty of $100 for the first day plus $10 for each day after                                
06 the first day that the notice was not given. Total penalties under this subsection may                                  
07 not exceed $1,000 for a failure to file a required report. Penalties assessed under this                                
08 subsection are eligible for reduction under (m) of this section. A penalty assessed                                     
09 under this subsection after penalties have been reduced under (m) of this section shall                                 
10 be increased by 25 percent and shall bear interest at the rate established under                                        
11       AS 45.45.010.                                                                                                     
12    * Sec. 22. AS 23.30.155(d) is amended to read:                                                                     
13 (d)  If the employer controverts the right to compensation, the employer shall                                          
14 file with the division, in a format prescribed by the director, [AND SEND TO THE                                    
15 EMPLOYEE] a notice of controversion on or before the 21st day after the employer                                        
16 has knowledge of the alleged injury or death. If the employer controverts the right to                                  
17 compensation, excluding medical benefits, after payments have begun, the employer                                   
18 shall file with the division, in a format prescribed by the director, [AND SEND TO                                  
19 THE EMPLOYEE] a notice of controversion not later than the date [WITHIN                                             
20 SEVEN DAYS AFTER] an installment of compensation payable without an award is                                            
21 due under (b) of this section. If the employer controverts medical treatment, the                                   
22 employer shall file with the division, in a format prescribed by the director, a                                    
23 notice of controversion not later than the date the payment, reimbursement, or                                      
24 authorization for medical treatment is due under AS 23.30.097. When the                                             
25 employer files a notice of controversion, the division shall notify the employee of                                 
26 the controversion. When payment of temporary disability benefits is controverted                                    
27 solely on the grounds that another employer or another insurer of the same employer                                     
28 may be responsible for all or a portion of the benefits, the most recent employer or                                    
29 insurer who is party to the claim and who may be liable shall make the payments                                         
30 during the pendency of the dispute. When a final determination of liability is made,                                    
31 any reimbursement required, including interest at the statutory rate, and all costs and                                 
01 attorney fees incurred by the prevailing employer, shall be made not later than                                     
02       [WITHIN] 14 days after the determination.                                                                         
03    * Sec. 23. AS 23.30.155(e) is amended to read:                                                                     
04 (e)  If any installment of compensation, excluding medical benefits, payable                                        
05 without an award is [NOT] paid late [WITHIN SEVEN DAYS AFTER IT                                                     
06 BECOMES DUE], as provided in (b) of this section, there shall be added to the unpaid                                    
07 installment an amount equal to 25 percent of the installment. If a bill for medical                                 
08 treatment, including prescription charges or transportation for medical                                             
09 treatment, is paid or reimbursed late, or a request for medical treatment is not                                    
10 timely authorized under AS 23.30.097, there shall be added an amount equal to                                       
11 25 percent of the bill, reimbursement, or estimated fee or charge for the                                           
12 requested medical treatment. This additional amount shall be paid at the same time                                  
13 as, and in addition to, the installment, bill, or reimbursement, or sent with                                       
14 authorization for medical treatment, unless notice is filed under (d) of this section                               
15 or unless the nonpayment or late authorization is excused by the board after a                                      
16 showing by the employer that, owing to conditions over which the employer had no                                    
17 control, the installment, bill, or reimbursement could not be paid or the request                           
18 could not be authorized within the period prescribed for the payment or                                         
19 authorization. The additional amount shall be paid directly to the recipient to whom                                
20 the unpaid installment, bill, or reimbursement was to be paid or, if authorization of                           
21       medical treatment was requested, to the employee seeking the medical treatment.                               
22    * Sec. 24. AS 23.30.155(m) is amended to read:                                                                     
23 (m)  On or before March 1 of each year, the insurer or adjuster shall file a                                            
24 verified annual report in a format [ON A FORM] prescribed by the director stating                                   
25 the total amount of all compensation by type, the number of claims received and the                                     
26 percentage controverted, medical and related benefits, vocational rehabilitation                                        
27 expenses, legal fees, including a separate total of fees paid to attorneys and fees paid                                
28 for the other costs of litigation, and penalties paid on all claims during the preceding                                
29 calendar year. If the annual report is timely and complete when received by the                                         
30 division and provides accurate information about each category of payments, the                                         
31 director shall review the timeliness of the insurer's or adjuster's reports filed during the                            
01 preceding year under (c) of this section. If, during the preceding year, the insurer or                                 
02 adjuster filed at least 99 percent of the reports on time, the penalties assessed under (c)                             
03 of this section shall be waived. If, during the preceding year, the insurer or adjuster                                 
04 filed at least 97 percent of the reports on time, 75 percent of the penalties assessed                                  
05 under (c) of this section shall be waived. If, during the preceding year, the insurer or                                
06 adjuster filed 95 percent of the reports on time, 50 percent of the penalties assessed                                  
07 under (c) of this section shall be waived. If, during the preceding year, the insurer's or                              
08 adjuster's reports have not been filed on time at least 95 percent of the time, none of                                 
09 the penalties assessed under (c) of this section shall be waived. The penalties that are                                
10 not waived are due and payable when the insurer or adjuster receives notification from                                  
11 the director regarding the timeliness of the reports. If the annual report is not filed by                              
12 March 1 of each year, the insurer or adjuster shall pay a civil penalty of $100 for the                                 
13 first day the annual report is late and $10 for each additional day the report is late. If                              
14 the annual report is incomplete when filed, the insurer or adjuster shall pay a civil                                   
15       penalty of $1,000.                                                                                                
16    * Sec. 25. AS 23.30.165(a) is amended to read:                                                                     
17 (a)  If an [EACH] employee, a [AND] beneficiary, or the workers'                                            
18 compensation benefits guaranty fund (AS 23.30.082) is entitled to compensation                                      
19 under the provisions of this chapter, the person or the fund has a lien for the full                                
20 amount of the compensation the person or the fund is entitled to, including costs and                               
21 disbursements of suit and attorney fees allowed, on [UPON] all of the property in                                   
22 connection with the construction, preservation, maintenance, or operation of which the                                  
23 work of the employee was being performed at the time of the injury or death. For                                        
24 example, [:] in the case of an employee injured or killed while engaged in mining or in                             
25 work connected with mining, the lien extends to the entire mine and all property used                                   
26 in connection with it; and, in the case of an employee injured or killed while engaged                              
27 in fishing or in the packing, canning, or salting of fish, or other branch of the fish                                  
28 industry, the lien extends to the entire packing, fishing, salting, or canning plant or                                 
29 establishment and all property used in connection with it; and this is the case with                                    
30 other businesses, industries, works, occupations, and employments. If the workers'                                  
31 compensation benefits guaranty fund (AS 23.30.082) is entitled to a civil penalty                                   
01 assessed under AS 23.30.080, the fund has a lien for the full amount of the civil                                   
02 penalty on all of the property in connection with the construction, preservation,                                   
03       maintenance, or operation of the uninsured or underinsured employer.                                          
04    * Sec. 26. AS 23.30.165(d) is amended to read:                                                                     
05 (d)  A person or the workers' compensation benefits guaranty fund                                                   
06 (AS 23.30.082) claiming a lien under this chapter shall, not later than [WITHIN] one                            
07 year after the person or the fund has knowledge [DATE] of the injury or death                                   
08 [FROM WHICH THE CLAIM OF COMPENSATION ARISES], record in the office                                                     
09 of the recorder of the recording district in which the property affected by the lien is                                 
10 located, a notice of lien signed and verified by the claimant, or someone on behalf of                              
11 the claimant or the fund, and stating [, IN SUBSTANCE,] the name of the person                                      
12 injured or killed out of which injury or death the claim of compensation arises, the                                    
13 name of the employer of the injured or deceased person at the time of the injury or                                     
14 death, a description of the property affected or covered by the lien, and the name of                                   
15 the owner or reputed owner of the property. In claiming a lien for a civil penalty                                  
16 under AS 23.30.080, the workers' compensation benefits guaranty fund                                                
17 (AS 23.30.082) shall, not later than one year after the date of a declaration of                                    
18 default, record in the office of the recorder of the recording district in which the                                
19 property affected by the lien is located a signed and verified notice of lien stating                               
20 the name of the employer assessed a civil penalty under AS 23.30.080, a                                             
21 description of the property affected or covered by the lien, and the name of the                                    
22       owner or reputed owner of the property.                                                                       
23    * Sec. 27. AS 23.30.205(e) is amended to read:                                                                     
24 (e)  An employer or the employer's carrier shall notify the commissioner of                                             
25 labor and workforce development of any possible claim against the second injury fund                                    
26 as soon as practicable, but in no event later than 100 weeks after the employer or the                                  
27 employer's carrier has knowledge of the injury or death or after the deadline for                                   
28       submitting a claim for reimbursement in (g) of this section.                                                  
29    * Sec. 28. AS 23.30.205 is amended by adding a new subsection to read:                                             
30 (g)  An employer or the employer's carrier must establish all requirements for                                          
31 reimbursement in this section, including notice of any possible claim and the payment                                   
01 of compensation in excess of 104 weeks, before submitting a claim for reimbursement                                     
02 to the second injury fund.  Notwithstanding (a) and (b) of this section, a claim for                                    
03 reimbursement may not be submitted for an injury or death that occurs after                                             
04 August 31, 2017, and must be submitted before October 1, 2019. An employer that                                         
05 qualifies for reimbursement under this section will continue to receive reimbursement                                   
06 payments on claims accepted by the fund, or ordered by the board, until the fund's                                      
07       liabilities for the claim are extinguished.                                                                       
08    * Sec. 29. AS 23.30.230(a) is amended to read:                                                                     
09            (a)  The following persons are not covered by this chapter:                                                  
10                 (1)  a part-time baby-sitter;                                                                           
11                 (2)  a cleaning person;                                                                                 
12                 (3)  harvest help and similar part-time or transient help;                                              
13 (4)  a person employed as a sports official on a contractual basis and                                                  
14 who officiates only at sports events in which the players are not compensated; in this                                  
15 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper,                                           
16       timekeeper, organizer, or other person who is a neutral participant in a sports event;                            
17                 (5)  a person employed as an entertainer on a contractual basis;                                        
18                 (6)  a commercial fisherman, as defined in AS 16.05.940;                                                
19 (7)  an individual who drives a taxicab whose compensation and written                                                  
20 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours                                        
21 worked by the individual or the areas in which the individual may work are restricted                                   
22       except to comply with local ordinances;                                                                           
23 (8)  a participant in the Alaska temporary assistance program                                                           
24 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than                                     
25       subsidized or unsubsidized work or on-the-job training;                                                           
26 (9)  a person employed as a player or coach by a professional hockey                                                    
27 team if the person is covered under a health care insurance plan provided by the                                        
28 professional hockey team, the coverage is applicable to both work-related and                                           
29 nonwork-related injuries, and the coverage provides medical and related benefits as                                     
30 required under this chapter, except that coverage may not be limited to two years from                                  
31 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care                                  
01       insurance" has the meaning given in AS 21.12.050; [AND]                                                           
02 (10)  a person working as a qualified real estate licensee who performs                                                 
03 services under a written contract that provides that the person will not be treated as an                               
04 employee for federal income tax or workers' compensation purposes; in this                                              
05 paragraph, "qualified real estate licensee" means a person who is required to be                                        
06 licensed under AS 08.88.161 and whose payment for services is directly related to                                       
07       sales or other output rather than the number of hours worked; and                                             
08                 (11)  a person employed as an independent contractor; a person is                                   
09       an independent contractor for the purposes of this chapter only if the person                                 
10                      (A)  has an express contract to perform the services;                                          
11 (B)  is free from direction and control over the means and                                                          
12 manner of providing services, subject only to the right of the individual                                           
13 for whom, or entity for which, the services are provided to specify the                                             
14 desired results, completion schedule, or range of work hours, or to                                                 
15 monitor the work for compliance with contract plans and specifications,                                             
16            or federal, state, or municipal law;                                                                     
17 (C)  incurs most of the expenses for tools, labor, and other                                                        
18 operational costs necessary to perform the services, except that materials                                          
19            and equipment may be supplied;                                                                           
20 (D)  has an opportunity for profit and loss as a result of the                                                      
21            services performed for the other individual or entity;                                                   
22 (E)  is free to hire and fire employees to help perform the                                                         
23            services for the contracted work;                                                                        
24 (F)  has all business, trade, or professional licenses required                                                     
25 by federal, state, or municipal authorities for a business or individual                                            
26            engaging in the same type of services as the person;                                                     
27 (G)  follows federal Internal Revenue Service requirements                                                          
28            by                                                                                                       
29 (i)  obtaining an employer identification number, if                                                                
30                 required;                                                                                           
31 (ii)  filing business or self-employment tax returns for                                                            
01                 the previous tax year to report profit or income earned for the                                     
02                 same type of services provided under the contract; or                                               
03 (iii)  intending to file business or self-employment tax                                                            
04 returns for the current tax year to report profit or income earned                                                  
05 for the same type of services provided under the contract if the                                                    
06                 person's business was not operating in the previous tax year; and                                   
07                      (H)  meets at least two of the following criteria:                                             
08                           (i)  the person is responsible for the satisfactory                                       
09                 completion of services that the person has contracted to perform                                    
10 and is subject to liability for a failure to complete the contracted                                                
11 work, or maintains liability insurance or other insurance policies                                                  
12 necessary to protect the employees, financial interests, and                                                        
13                 customers of the person's business;                                                                 
14 (ii)  the person maintains a business location or a                                                                 
15 business mailing address separate from the location of the                                                          
16 individual for whom, or the entity for which, the services are                                                      
17                 performed;                                                                                          
18 (iii)  the person provides contracted services for two                                                              
19 or more different customers within a 12-month period or engages                                                     
20 in any kind of business advertising, solicitation, or other marketing                                               
21 efforts reasonably calculated to obtain new contracts to provide                                                    
22                 similar services.                                                                                   
23    * Sec. 30. AS 23.30.240 is repealed and reenacted to read:                                                         
24 Sec. 23.30.240. Officers of corporations, municipal corporations, and                                                 
25 nonprofit corporations, and members of limited liability companies as employees.                                      
26 (a) Except as provided in (b) of this section, an executive officer elected or appointed                                
27 and empowered in accordance with the charter and bylaws of a corporation or a                                           
28 member of a limited liability company organized under AS 10.50 is not an employee                                       
29 of the business entity under this chapter if the executive officer or member owns at                                    
30 least 10 percent of the business entity. Except as provided in (b) of this section, an                                  
31 executive officer of a municipal corporation or charitable, religious, educational, or                                  
01       other nonprofit corporation is not an employee of the corporation under this chapter.                             
02 (b)  Any type of corporation or limited liability company may bring an                                                  
03 executive officer or a member exempted under (a) of this section within the coverage                                    
04 of the business entity's insurance contract by specifically including the executive                                     
05 officer or member in the contract of insurance. The election to bring the executive                                     
06 officer or member within the business entity's coverage continues in force for the                                      
07 period during which the contract of insurance is in effect. During that period, an                                      
08 executive officer or a member brought within the coverage of the insurance contract is                                  
09       an employee of the business entity under this chapter.                                                            
10    * Sec. 31. AS 23.30.247(c) is amended to read:                                                                     
11 (c)  This section may not be construed to prohibit an employer from requiring a                                         
12 prospective employee to fill out a preemployment questionnaire or application                                           
13 regarding the person's prior health or disability history as long as it is meant to                                     
14 [EITHER DOCUMENT WRITTEN NOTICE FOR SECOND INJURY FUND                                                                  
15 REIMBURSEMENT UNDER AS 23.30.205(c) OR] determine whether the employee                                                  
16 has the physical or mental capacity to meet the documented physical or mental                                           
17       demands of the work.                                                                                              
18    * Sec. 32. AS 23.30.250(a) is amended to read:                                                                     
19 (a)  A person who (1) knowingly makes a false or misleading statement,                                                  
20 representation, or submission related to a benefit under this chapter; (2) knowingly                                    
21 assists, abets, solicits, or conspires in making a false or misleading submission                                       
22 affecting the payment, coverage, or other benefit under this chapter; (3) knowingly                                     
23 misclassifies employees or engages in deceptive leasing practices for the purpose of                                    
24 evading full payment of workers' compensation insurance premiums; or (4) employs                                        
25 or contracts with a person or firm to coerce or encourage an individual to file a                                       
26 fraudulent compensation claim is civilly liable to a person adversely affected by the                                   
27 conduct, is guilty of theft by deception as defined in AS 11.46.180, and may be                                         
28 punished as provided by AS 11.46.120 - 11.46.150. The division may assess a civil                                   
29 penalty as provided in AS 23.30.080 against an employer that misclassifies                                          
30       employees or engages in deceptive leasing practices.                                                          
31    * Sec. 33. AS 23.30.250 is amended by adding new subsections to read:                                              
01 (d)  While receiving compensation provided under this chapter, an employee                                              
02 shall inform the employer or insurer of the employee's receipt of any unemployment                                      
03 or disability benefits other than the compensation provided under this chapter, and                                     
04 shall report any employment other than work for the employer providing the                                              
05 compensation under this chapter. In this subsection, "employment" means any type of                                     
06       work, whether paid or unpaid.                                                                                     
07 (e)  An employer misclassifies employees or engages in deceptive leasing                                                
08 practices under (a) of this section if, for the purpose of evading full payment of                                      
09 workers' compensation insurance premiums, the employer knowingly falsifies or                                           
10       misrepresents the                                                                                                 
11                 (1)  job duties of employees;                                                                           
12 (2)  payments made to employees, including concealing payment by not                                                    
13       reporting or underreporting wages or payments made in kind;                                                       
14                 (3)  true identity of the employer;                                                                     
15                 (4)  nature of the employer's business;                                                                 
16 (5)  employer's history of injuries or deaths covered under this chapter;                                               
17       or                                                                                                                
18 (6)  number of employees, including by misclassifying a worker as an                                                    
19 independent contractor as described in AS 23.30.230(a)(11), or as a nonemployee,                                        
20 when that worker is an employee covered under this chapter as provided in                                               
21       AS 23.30.230, 23.30.239, or 23.30.240.                                                                            
22    * Sec. 34. AS 23.30.255(a) is amended to read:                                                                     
23 (a)  An employer required to secure the payment of compensation under this                                              
24 chapter who fails to do so 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 fine or imprisonment imposed for the failure of the business entity                                                 
02 [CORPORATION] to secure the payment of compensation. [THE PRESIDENT,                                                    
03 SECRETARY, AND TREASURER ARE SEVERALLY PERSONALLY LIABLE,                                                               
04 JOINTLY WITH THE CORPORATION, FOR THE COMPENSATION OR OTHER                                                             
05 BENEFIT WHICH ACCRUES UNDER THIS CHAPTER IN RESPECT TO AN                                                               
06 INJURY THAT HAPPENS TO AN EMPLOYEE OF THE CORPORATION WHILE                                                             
07 IT HAS FAILED TO SECURE THE PAYMENT OF COMPENSATION AS                                                                  
08       REQUIRED BY AS 23.30.075.]                                                                                        
09    * Sec. 35. AS 23.30.255(b) is amended to read:                                                                     
10 (b)  An employer who knowingly transfers, sells, encumbers, assigns, or in any                                          
11 manner disposes of, conceals, secretes, or destroys any property after one of the                                       
12 employer's employees has been injured within the scope of this chapter, with intent to                                  
13 avoid the payment of compensation under this chapter to the employee or the                                             
14 employee's dependents, is guilty of a class B felony if the amount involved exceeds                                     
15 $25,000 or a class C felony if the amount involved is $25,000 or less. If the employer                                  
16 is a limited liability company, limited liability partnership, or corporation, a                                
17 person who, at the time of an employee's injury or death, has at least a 10 percent                                 
18 ownership in the business entity, is actively in charge of the operations of the                                    
19 business entity, or has the authority to insure the business entity or apply for a                                  
20 certificate of self insurance, is [ITS PRESIDENT, SECRETARY, AND                                                    
21 TREASURER ARE ALSO] severally liable with the business entity for [TO] the                                          
22 penalty of imprisonment as well as jointly liable with the business entity                                          
23       [CORPORATION] for the fine.                                                                                       
24    * Sec. 36. AS 23.30.260 is amended by adding a new subsection to read:                                             
25 (c)  Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is                                         
26 not required if the parties who reach an agreement in regard to a claim for injury or                                   
27 death under this chapter agree to the payment of attorney fees, and the agreement in                                    
28 regard to a claim for injury or death does not require board approval under                                             
29       AS 23.30.012.                                                                                                     
30    * Sec. 37. AS 23.30.395(19) is repealed and reenacted to read:                                                     
31 (19)  "employee" means a person who is not an independent contractor                                                    
01       as described in AS 23.30.230 and who, under a contract of hire, express or implied, is                            
02       employed by an employer as defined in (20) of this section;                                                       
03    * Sec. 38. AS 23.30.040(f), 23.30.080(d), 23.30.110(h), and 23.30.155(q) are repealed.                             
04    * Sec. 39. The uncodified law of the State of Alaska is amended by adding a new section to                         
05 read:                                                                                                                   
06 APPLICABILITY. (a) Notwithstanding AS 23.30.075(b), as repealed and reenacted                                           
07 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                           
08 repealed and reenacted by sec. 9 of this Act, AS 23.30.080(g), as amended by sec. 10 of this                            
09 Act, AS 23.30.080(h) - (k), added by sec. 11 of this Act, and the repeal of AS 23.30.080(d) by                          
10 sec. 38 of this Act, petitions of the division of workers' compensation against employers for a                         
11 failure to insure for workers' compensation liability that are pending before the Alaska                                
12 Workers' Compensation Board before the effective date of secs. 7 - 11 and 38 of this Act shall                          
13 be continued and completed under AS 23.30.075(b) and 23.30.080, as those statutes read on                               
14 the day before the effective date of secs. 7 - 11 and 38 of this Act.                                                   
15 (b)  AS 23.30.110(c), as repealed and reenacted by sec. 16 of this Act,                                                 
16 AS 23.30.110(d), as repealed and reenacted by sec. 17 of this Act, and the repeal of                                    
17 AS 23.30.110(h) by sec. 38 of this Act apply to claims filed on or after the effective date of                          
18 secs. 16, 17, and 38 of this Act. Claims pending on the effective date of secs. 16, 17, and 38 of                       
19 this Act shall be continued and completed under AS 23.30.110(c), (d), and (h), as those                                 
20 statutes read on the day before the effective date of secs. 16, 17, and 38 of this Act.                                 
21 (c)  Notwithstanding AS 23.30.240, as repealed and reenacted by sec. 30 of this Act,                                    
22 the terms of an insurance policy or contract in effect before the effective date of sec. 30 of this                     
23 Act shall comply with AS 23.30.240, as that section read on the day before the effective date                           
24 of sec. 30 of this Act. AS 23.30.240, as repealed and reenacted by sec. 30 of this Act, applies                         
25 to an insurance policy or contract entered into or renewed on or after the effective date of sec.                       
26 30 of this Act.                                                                                                         
27 (d)  The amendments to AS 23.30.205, added by secs. 27 and 28 of this Act, apply to                                     
28 notice of any possible claim and a claim for reimbursement submitted on or after the effective                          
29 date of secs. 27 and 28 of this Act.                                                                                    
30    * Sec. 40. The uncodified law of the State of Alaska is amended by adding a new section to                         
31 read:                                                                                                                   
01 TRANSITION: SATISFACTION OF SECOND INJURY FUND CLAIMS. Subject to                                                       
02 appropriation, the balance of the second injury fund created under AS 23.30.040 lapses into                             
03 the general fund when all liability for accepted claims under AS 23.30.205 to the second                                
04 injury fund and claims ordered to be paid from that fund have been satisfied.                                           
05    * Sec. 41. The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07 TRANSITION: REGULATIONS. The Department of Labor and Workforce                                                          
08 Development and the Alaska Workers' Compensation Board may adopt regulations to                                         
09 implement this Act. The regulations take effect under AS 44.62 (Administrative Procedure                                
10 Act), but not before the effective date of the law implemented by the regulation.                                       
11    * Sec. 42. Sections 27, 28, and 41 of this Act take effect immediately under                                       
12 AS 01.10.070(c).                                                                                                        
13    * Sec. 43. Section 31 of this Act takes effect September 1, 2017.                                                  
14    * Sec. 44. Section 30 of this Act takes effect August 1, 2018.