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CSHB 303(L&C): "An Act relating to workers' compensation benefits for the rehabilitation and reemployment of injured employees."

00 CS FOR HOUSE BILL NO. 303(L&C) 01 "An Act relating to workers' compensation benefits for the rehabilitation and 02 reemployment of injured employees." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 23.30.005(h) is amended to read: 05 (h) The department shall adopt rules for all panels, [AND] procedures for the 06 periodic selection, retention, and removal of both rehabilitation specialists and 07 physicians under AS 23.30.041 and 23.30.095, and [SHALL ADOPT] regulations to 08 carry out the provisions of this chapter. The department shall adopt regulations to 09 set fees and establish qualifications for rehabilitation specialists who provide 10 services under AS 23.30.041. The department may by regulation provide for 11 procedural, discovery, or stipulated matters to be heard and decided by the 12 commissioner or a hearing officer designated to represent the commissioner rather 13 than a panel. If a procedural, discovery, or stipulated matter is heard and decided by 14 the commissioner or a hearing officer designated to represent the commissioner, the

01 action taken is considered the action of the full board on that aspect of the claim. 02 Process and procedure under this chapter shall be as summary and simple as possible. 03 The department, the board, or a member of it may, for the purposes of this chapter, 04 subpoena witnesses, administer or cause to be administered oaths, and [MAY] 05 examine or cause to have examined the parts of the books and records of the parties to 06 a proceeding that relate to questions in dispute. The superior court, on application of 07 the department, the board, or any members of it, shall enforce the attendance and 08 testimony of witnesses and the production and examination of books, papers, and 09 records. 10 * Sec. 2. AS 23.30.012(a) is amended to read: 11 (a) Except as provided in AS 23.30.041, at [AT] any time after death, or 12 after 30 days subsequent to the date of the injury, the employer and the employee or 13 the beneficiary or beneficiaries, as the case may be, have the right to reach an 14 agreement in regard to a claim for injury or death under this chapter. A [, BUT A] 15 memorandum of the agreement in a form prescribed by the director shall be filed with 16 the division. Otherwise, the agreement is void for any purpose. Except as provided in 17 (b) of this section, an agreement filed with the division discharges the liability of the 18 employer for the compensation, notwithstanding the provisions of AS 23.30.130, 19 23.30.160, and 23.30.245, and is enforceable as a compensation order. 20 * Sec. 3. AS 23.30.041(b) is amended to read: 21 (b) The administrator [SHALL] 22 (1) shall enforce regulations that [ADOPTED BY THE BOARD TO] 23 implement this section; 24 (2) shall recommend regulations for adoption by the department 25 [BOARD] that establish qualifications, fees, and performance and reporting criteria 26 for rehabilitation specialists; 27 (3) shall enforce the quality and effectiveness of reemployment 28 benefits provided for under this section; 29 (4) shall review on an annual basis the performance of rehabilitation 30 specialists to determine continued eligibility for delivery of rehabilitation services; 31 (5) shall submit to the department, on or before October 1 [MAY 1]

01 of each year, a report of reemployment benefits provided under this section for the 02 previous calendar year; the report must include a general section, a section 03 [SECTIONS] related to [EACH] rehabilitation specialists [SPECIALIST 04 EMPLOYED UNDER THIS SECTION], and a statistical summary of all 05 rehabilitation cases and [, INCLUDING 06 (A) THE ESTIMATED AND ACTUAL COST OF EACH 07 ACTIVE REHABILITATION PLAN; 08 (B) THE ESTIMATED AND ACTUAL TIME OF EACH 09 REHABILITATION PLAN; 10 (C) A STATUS REPORT ON ALL INDIVIDUALS 11 REQUESTING, WAIVING, BEGINNING, COMPLETING, OR 12 TERMINATING A REEMPLOYMENT BENEFITS PROGRAM 13 INCLUDING 14 (i) REASONS FOR DENIAL, WAIVER, 15 SUSPENSION, OR TERMINATION; 16 (ii) DATES OF COMPLETION AND RETURN TO 17 WORK; AND 18 (iii) OTHER INFORMATION REQUIRED BY THE 19 DIRECTOR; 20 (D)] the cost of reemployment benefits [; 21 (E) STATUS REPORTS OF ALL INDIVIDUALS WHO 22 SUCCESSFULLY COMPLETED A REEMPLOYMENT PLAN THAT 23 INCLUDES 24 (i) THE PLAN'S OCCUPATIONAL GOAL AND 25 WHETHER THE INDIVIDUAL OBTAINED WORK AFTER 26 COMPLETION IN THE PLANNED OR ANOTHER OCCUPATION; 27 AND 28 (ii) THE INDIVIDUAL'S EMPLOYMENT STATUS 29 SIX MONTHS, ONE YEAR, AND TWO YEARS AFTER 30 REEMPLOYMENT PLAN COMPLETION]; 31 (6) shall maintain a list of rehabilitation specialists who meet the

01 qualifications established under this section and under regulations adopted by the 02 department; 03 (7) shall promote awareness among physicians, adjusters, injured 04 workers, employers, employees, attorneys, training providers, and rehabilitation 05 specialists of the reemployment program established in this section;. 06 (8) may develop and provide employers with information and 07 consultation services on methods to return injured employees to work quickly; 08 and 09 (9) may, at the request of the employer, employee, or rehabilitation 10 specialist, or on the administrator's own initiative, hold a conference with an 11 employee, an employer, and a rehabilitation specialist to discuss the employee's 12 reemployment benefits [SUBSECTION]. 13 * Sec. 4. AS 23.30.041(c) is amended to read: 14 (c) An employee and an employer may stipulate to the employee's eligibility 15 for reemployment benefits at any time. If an employee suffers a compensable injury 16 and, as a result of the injury, the employee is totally unable, for 90 [45] consecutive 17 days, to return to the employee's employment at the time of injury, the employer shall 18 notify the administrator in a format prescribed by the director on or before the 19 100th day. Not later than 10 days after the 100th day, the administrator shall notify 20 the employee of the employee's rights and obligations under this section, including 21 notification that the employee shall attend an informational meeting regarding 22 the employee's rights and obligations under this section. An [WITHIN 14 DAYS 23 AFTER THE 45TH DAY. IF THE EMPLOYEE IS TOTALLY UNABLE TO 24 RETURN TO THE EMPLOYEE'S EMPLOYMENT FOR 60 CONSECUTIVE 25 DAYS AS A RESULT OF THE INJURY, THE] employee [OR EMPLOYER] may 26 request an eligibility evaluation for reemployment benefits not later than 90 days 27 after the payment of temporary disability compensation ends or the employee is 28 notified in a format prescribed by the director that the employee may request an 29 eligibility evaluation, whichever is later. The administrator may approve the request 30 if the employee's injury may permanently preclude the employee's return to the 31 employee's occupation at the time of the injury. [IF THE EMPLOYEE IS TOTALLY

01 UNABLE TO RETURN TO THE EMPLOYEE'S EMPLOYMENT AT THE TIME 02 OF THE INJURY FOR 90 CONSECUTIVE DAYS AS A RESULT OF THE 03 INJURY, THE ADMINISTRATOR SHALL, WITHOUT A REQUEST, ORDER AN 04 ELIGIBILITY EVALUATION UNLESS A STIPULATION OF ELIGIBILITY WAS 05 SUBMITTED.] If the administrator approves the [A] request [OR ORDERS AN 06 EVALUATION], the administrator shall [, ON A ROTATING AND GEOGRAPHIC 07 BASIS,] select a rehabilitation specialist from the list maintained under (b)(6) of this 08 section to perform the eligibility evaluation. If the person that employs a rehabilitation 09 specialist selected by the administrator to perform an eligibility evaluation under this 10 subsection is performing any other work on the same workers' compensation claim 11 involving the injured employee, the administrator shall select a different rehabilitation 12 specialist. 13 * Sec. 5. AS 23.30.041(d) is amended to read: 14 (d) Not later than 60 [WITHIN 30] days after the referral by the 15 administrator, the rehabilitation specialist shall perform the eligibility evaluation and 16 issue a report of findings. Not later than [THE ADMINISTRATOR MAY GRANT 17 UP TO AN ADDITIONAL 30 DAYS FOR PERFORMANCE OF THE 18 ELIGIBILITY EVALUATION UPON NOTIFICATION OF UNUSUAL AND 19 EXTENUATING CIRCUMSTANCES AND THE REHABILITATION 20 SPECIALIST'S REQUEST. WITHIN] 14 days after receipt of the report from the 21 rehabilitation specialist, the administrator shall decide whether the employee is 22 eligible for reemployment benefits and notify the parties [OF THE EMPLOYEE'S 23 ELIGIBILITY FOR REEMPLOYMENT PREPARATION BENEFITS]. A party 24 may seek reconsideration or review by the board of the administrator's decision 25 under (v) of this section or modification of the administrator's decision under 26 AS 23.30.130 [WITHIN 10 DAYS AFTER THE DECISION, EITHER PARTY MAY 27 SEEK REVIEW OF THE DECISION BY REQUESTING A HEARING UNDER 28 AS 23.30.110. THE HEARING SHALL BE HELD WITHIN 30 DAYS AFTER IT IS 29 REQUESTED. THE BOARD SHALL UPHOLD THE DECISION OF THE 30 ADMINISTRATOR EXCEPT FOR ABUSE OF DISCRETION ON THE 31 ADMINISTRATOR'S PART].

01 * Sec. 6. AS 23.30.041(e) is amended to read: 02 (e) An employee shall be eligible for benefits under this section upon the 03 employee's written request and by having a physician predict that the employee will 04 have permanent physical capacities that are less than the physical demands of the 05 employee's job as described in the 1993 edition of the United States Department of 06 Labor's "Selected Characteristics of Occupations Defined in the Revised Dictionary of 07 Occupational Titles" for 08 (1) the employee's job at the time of injury; or 09 (2) other jobs that exist in the labor market 10 (A) that the employee has held or received training for within 11 10 years before the injury; or 12 (B) that offer wages that ensure remunerative 13 employability for the employee and that the employee has held following the 14 injury for a period long enough to obtain the skills to compete in the labor 15 market, according to specific vocational preparation codes as described in the 16 1993 edition of the United States Department of Labor's "Selected 17 Characteristics of Occupations Defined in the Revised Dictionary of 18 Occupational Titles." 19 * Sec. 7. AS 23.30.041(f) is amended to read: 20 (f) An employee is not eligible for reemployment benefits if 21 (1) the employer offers employment within the employee's predicted 22 post-injury physical capacities at a wage equivalent to at least the state minimum wage 23 under AS 23.10.065 or 75 percent of the worker's gross hourly wages at the time of 24 injury, whichever is greater, and the employment prepares the employee to be 25 employable in other jobs that exist in the labor market; 26 (2) [THE EMPLOYEE PREVIOUSLY DECLINED THE 27 DEVELOPMENT OF A REEMPLOYMENT BENEFITS PLAN UNDER (g) OF 28 THIS SECTION, RECEIVED A JOB DISLOCATION BENEFIT UNDER (g)(2) OF 29 THIS SECTION, AND RETURNED TO WORK IN THE SAME OR SIMILAR 30 OCCUPATION IN TERMS OF PHYSICAL DEMANDS REQUIRED OF THE 31 EMPLOYEE AT THE TIME OF THE PREVIOUS INJURY;

01 (3) THE EMPLOYEE HAS BEEN PREVIOUSLY 02 REHABILITATED IN A FORMER WORKER'S COMPENSATION CLAIM AND 03 RETURNED TO WORK IN THE SAME OR SIMILAR OCCUPATION IN TERMS 04 OF PHYSICAL DEMANDS REQUIRED OF THE EMPLOYEE AT THE TIME OF 05 THE PREVIOUS INJURY; OR 06 (4)] at the time of medical stability, no permanent impairment is 07 identified or expected; or 08 (3) the employee returned to work in the same or similar 09 occupation in terms of physical demands required of the employee at the time of 10 a previous injury after 11 (A) receiving a job dislocation benefit in the former 12 workers' compensation claim; or 13 (B) completing a reemployment plan in the former 14 workers' compensation claim. 15 * Sec. 8. AS 23.30.041(g) is amended to read: 16 (g) After an [WITHIN 30 DAYS AFTER THE] employee receives the 17 administrator's determination [NOTIFICATION] of eligibility for reemployment 18 benefits or the employer and employee stipulate that the employee is eligible for 19 benefits, the employee may take a job dislocation benefit under (s) of this section 20 or may proceed with the reemployment process by selecting a rehabilitation 21 specialist to develop a reemployment plan. The employee [, AN EMPLOYEE 22 SHALL FILE A STATEMENT UNDER OATH WITH THE BOARD, ON A FORM 23 PRESCRIBED OR APPROVED BY THE BOARD, TO NOTIFY THE 24 ADMINISTRATOR AND THE EMPLOYER OF THE EMPLOYEE'S ELECTION 25 TO EITHER USE THE REEMPLOYMENT BENEFITS OR TO ACCEPT A JOB 26 DISLOCATION BENEFIT UNDER (2) OF THIS SUBSECTION. THE NOTICE OF 27 THE ELECTION IS EFFECTIVE UPON SERVICE TO THE ADMINISTRATOR 28 AND THE EMPLOYER. THE FOLLOWING APPLY TO AN ELECTION UNDER 29 THIS SUBSECTION: 30 (1) AN EMPLOYEE WHO ELECTS TO USE THE 31 REEMPLOYMENT BENEFITS ALSO] shall notify the employer of the employee's

01 selection of a rehabilitation specialist not later than 30 days after the determination 02 of eligibility or stipulation. An employee's [WHO SHALL PROVIDE A 03 COMPLETE REEMPLOYMENT BENEFITS PLAN;] failure to give notice of 04 selection [OF A REHABILITATION SPECIALIST REQUIRED BY THIS 05 PARAGRAPH] constitutes noncooperation under (n) of this section. If [; IF] the 06 employer disagrees with the employee's selection [CHOICE] of the rehabilitation 07 specialist [TO DEVELOP THE PLAN] and the disagreement cannot be resolved, 08 [THEN] the administrator shall assign a rehabilitation specialist. The administrator 09 may also assign a new rehabilitation specialist if no progress report or plan is 10 timely provided under (h) of this section. If the administrator selects a 11 rehabilitation specialist, [;] the employer and employee each have one right of 12 refusal of a rehabilitation specialist [; 13 (2) AN EMPLOYEE WHO ELECTS TO ACCEPT A JOB 14 DISLOCATION BENEFIT IN PLACE OF REEMPLOYMENT BENEFITS AND 15 WHO HAS BEEN GIVEN A PERMANENT PARTIAL IMPAIRMENT RATING 16 BY A PHYSICIAN SHALL BE PAID 17 (A) $5,000 IF THE EMPLOYEE'S PERMANENT PARTIAL 18 IMPAIRMENT RATING IS GREATER THAN ZERO AND LESS THAN 15 19 PERCENT; 20 (B) $8,000 IF THE EMPLOYEE'S PERMANENT PARTIAL 21 IMPAIRMENT RATING IS 15 PERCENT OR GREATER BUT LESS 22 THAN 30 PERCENT; OR 23 (C) $13,500 IF THE EMPLOYEE'S PERMANENT PARTIAL 24 IMPAIRMENT RATING IS 30 PERCENT OR GREATER; 25 (3) THE FORM PROVIDED BY THE DIVISION FOR ELECTION 26 MUST SPECIFY THAT THE EMPLOYEE UNDERSTANDS THE SCOPE OF THE 27 BENEFITS AND RIGHTS BEING WAIVED BY THE ELECTION; THE BOARD 28 SHALL SERVE A COPY OF THE EXECUTED ELECTION FORM ON THE 29 ADMINISTRATOR AND THE EMPLOYER WITHIN 10 DAYS AFTER 30 RECEIVING THE FORM FROM THE EMPLOYEE; A WAIVER AND ELECTION 31 EFFECTIVE UNDER THIS SUBSECTION DISCHARGES THE EMPLOYER'S

01 LIABILITY FOR THE BENEFITS OR RIGHTS UNDER THIS SECTION THAT 02 WERE NOT ELECTED; A WAIVER MAY NOT BE MODIFIED UNDER 03 AS 23.30.130; THE ADMINISTRATOR MAY NOT ACCEPT AN ELECTION TO 04 ACCEPT A JOB DISLOCATION BENEFIT BY AN EMPLOYEE WHO HAS NOT 05 SIGNED A FORM THAT CONSPICUOUSLY NOTES THE BENEFIT BEING 06 WAIVED]. 07 * Sec. 9. AS 23.30.041(h) is amended to read: 08 (h) Not later than 60 [WITHIN 90] days after the rehabilitation specialist's 09 selection under (g) of this section, the rehabilitation specialist shall provide a 10 progress report regarding the development of a [THE] reemployment plan to the 11 employer, employee, and administrator. Not later than 90 days after the 12 rehabilitation specialist's selection under (g) of this section, the rehabilitation 13 specialist shall send a reemployment plan to the employer and employee for 14 approval and shall send a copy of the plan to the administrator [MUST BE 15 FORMULATED AND APPROVED]. The reemployment plan must ensure 16 remunerative employability, require continuous participation by the employee, and 17 [MUST] maximize the usage of the employee's transferrable skills. If the 18 rehabilitation specialist cannot develop a plan that ensures remunerative 19 employability and that will be completed within the time and cost limitations of 20 (k) and (l) of this section, the employee may choose to waive remunerative 21 employability in the plan. The reemployment plan must include at least the 22 following: 23 (1) a determination of the occupational goal in the labor market; 24 (2) an inventory of the employee's technical skills, transferrable skills, 25 physical and intellectual capacities, academic achievement, emotional condition, and 26 family support; 27 (3) a plan to acquire the occupational skills to be employable through 28 (A) on-the-job training; 29 (B) vocational training; 30 (C) academic training; 31 (D) self-employment; or

01 (E) a combination of (A) - (D) of this paragraph; 02 (4) the cost estimate of the reemployment plan, including provider 03 fees; and the cost of tuition, books, tools, and supplies, transportation, temporary 04 lodging, or job modification devices; 05 (5) the estimated length of time that the plan will take; 06 (6) the date that the plan will commence; 07 (7) [THE ESTIMATED TIME OF MEDICAL STABILITY AS 08 PREDICTED BY A TREATING PHYSICIAN OR BY A PHYSICIAN WHO HAS 09 EXAMINED THE EMPLOYEE AT THE REQUEST OF THE EMPLOYER OR 10 THE BOARD, OR BY REFERRAL OF THE TREATING PHYSICIAN; 11 (8)] a detailed description and plan schedule; 12 (8) [(9)] a finding by the rehabilitation specialist that the inventory 13 under (2) of this subsection indicates that the employee can be reasonably expected to 14 satisfactorily complete the plan and perform in a new occupation within the time and 15 cost limitations of the plan; 16 (9) if applicable, a finding by the rehabilitation specialist that a 17 plan may not be developed that will be completed within the time and cost 18 limitations of (k) and (l) of this section while ensuring remunerative 19 employability, and a statement to be signed by the employee indicating the 20 employee's agreement to waive remunerative employability; and 21 (10) a provision requiring that, after a person has been assigned to 22 perform medical management services for an injured employee, the person shall send 23 written notice to the employee, the employer, and the employee's physician explaining 24 in what capacity the person is employed, whom the person represents, and the scope of 25 the services to be provided. 26 * Sec. 10. AS 23.30.041(j) is repealed and reenacted to read: 27 (j) Not later than 30 days after the rehabilitation specialist completes and 28 sends out a reemployment plan under (h) of this section, the employer and employee 29 may approve the plan by signing the plan and returning the plan to the rehabilitation 30 specialist, or either party may deny the plan by providing a specific reason in a request 31 to the administrator for review of the plan. If one party approves the plan and no other

01 party seeks review of the plan by the deadline, the plan is considered approved. If the 02 administrator reviews a plan, the administrator may hold a conference, at the request 03 of a party or on the administrator's own initiative, with the parties and the 04 rehabilitation specialist to ask for additional information or discuss reaching an 05 agreement on the plan. If the parties do not agree or a conference is not held, the 06 administrator shall make a decision approving, denying, or changing the plan not later 07 than 14 days after the request for review or conference, whichever is later. A party 08 may seek reconsideration or review by the board of the administrator's decision 09 approving, denying, or changing a plan under (v) of this section or modifying an 10 approved plan under (u) of this section. 11 * Sec. 11. AS 23.30.041(k) is amended to read: 12 (k) Benefits related to the reemployment process start on the date an 13 employee requests an eligibility evaluation or an employer and employee 14 stipulate to the employee's eligibility without an evaluation request. Before the 15 date of plan approval, stipend compensation under (2) of this subsection may not 16 extend past one year after permanent partial impairment benefits are exhausted 17 under (1) of this subsection. On or after the date of plan approval, benefits 18 [BENEFITS] related to the reemployment plan, including stipend compensation, 19 may not extend past two years after the [FROM] date of plan approval [OR 20 ACCEPTANCE, WHICHEVER DATE OCCURS FIRST], at which time the benefits 21 expire. The benefits under this subsection are paid as follows: 22 (1) if [. IF] an employee reaches medical stability before completion or 23 termination of the process [PLAN], temporary total disability benefits shall cease, 24 and the employer shall pay permanent partial impairment benefits [SHALL THEN 25 BE PAID] at the employee's temporary total disability rate; 26 (2) if [. IF] the employee's permanent partial impairment benefits are 27 exhausted before the completion or termination of the reemployment process, the 28 employer shall provide stipend compensation equal to 70 percent of the employee's 29 spendable weekly wages, but not to exceed 105 percent of the average weekly wage, 30 until the completion or termination of the process, except that any compensation paid 31 under this paragraph [SUBSECTION] is reduced by wages earned by the employee

01 while participating in the process to the extent that the wages earned, when combined 02 with the compensation paid under this subsection, exceed the employee's temporary 03 total disability rate; 04 (3) if [. IF PERMANENT PARTIAL DISABILITY OR] permanent 05 partial impairment benefits have been paid in a lump sum before the employee 06 requested or was found eligible for reemployment benefits, payment of benefits under 07 this subsection is suspended until [PERMANENT PARTIAL DISABILITY OR] 08 permanent partial impairment benefits would have ceased, had those benefits been 09 paid at the employee's temporary total disability rate, notwithstanding the provisions 10 of AS 23.30.155(j); a [. A] permanent partial impairment benefit remaining unpaid 11 upon the completion or termination of the plan shall be paid to the employee in a 12 single lump sum; 13 (4) an [. AN] employee may not be considered permanently totally 14 disabled so long as the employee is involved in the reemployment process under 15 this section [REHABILITATION PROCESS UNDER THIS CHAPTER. THE FEES 16 OF THE REHABILITATION SPECIALIST OR REHABILITATION 17 PROFESSIONAL SHALL BE PAID BY THE EMPLOYER AND MAY NOT BE 18 INCLUDED IN DETERMINING THE COST OF THE REEMPLOYMENT PLAN]. 19 * Sec. 12. AS 23.30.041(l) is amended to read: 20 (l) The cost of the reemployment plan incurred under this section shall be the 21 responsibility of the employer, shall be paid on an expense incurred basis, and may not 22 exceed $19,300. The commissioner shall adjust the maximum plan cost under this 23 subsection each year on January 1 based on the Consumer Price Index for the 24 Anchorage metropolitan area, as published by the Bureau of Labor Statistics, 25 United States Department of Labor. The maximum plan cost in effect when the 26 employee is found eligible for reemployment benefits applies to that plan and 27 continues to apply to that plan even if the plan is later modified. The fees of a 28 rehabilitation specialist may not be included in determining the cost of the plan. 29 The employer shall pay a rehabilitation specialist's fees for services under this 30 chapter. The administrator shall recommend and the department shall adopt 31 regulations to establish fees for rehabilitation specialist services [$13,300].

01 * Sec. 13. AS 23.30.041(n) is amended to read: 02 (n) After the employee has requested an eligibility evaluation or the 03 employer and employee have stipulated to eligibility for reemployment benefits, 04 [ELECTED TO PARTICIPATE IN REEMPLOYMENT BENEFITS, IF THE 05 EMPLOYER BELIEVES THE EMPLOYEE HAS NOT COOPERATED], the 06 employer may controvert reemployment benefits under AS 23.30.155 if the 07 employee has not cooperated with the reemployment process, as demonstrated by 08 [TERMINATE REEMPLOYMENT BENEFITS ON THE DATE OF 09 NONCOOPERATION. NONCOOPERATION MEANS] 10 (1) unreasonable failure to 11 (A) keep appointments; 12 (B) maintain passing grades; 13 (C) attend designated programs; 14 (D) maintain contact with the rehabilitation specialist; 15 (E) cooperate with the rehabilitation specialist in developing a 16 reemployment plan and participating in activities relating to reemployability on 17 a full-time basis; 18 (F) comply with the employee's responsibilities outlined in the 19 reemployment plan; or 20 (G) participate in any planned reemployment activity as 21 determined by the administrator; or 22 (2) failure to give written notice to the employer of the employee's 23 choice of rehabilitation specialist [SPECIALISTS WITHIN 30 DAYS AFTER 24 RECEIVING NOTICE OF ELIGIBILITY FOR BENEFITS FROM THE 25 ADMINISTRATOR] as required by (g) of this section. 26 * Sec. 14. AS 23.30.041(o) is amended to read: 27 (o) Upon the request of a [EITHER] party, the administrator shall decide 28 whether the employee has not cooperated as provided under (n) of this section. A 29 hearing before the administrator shall be held not later than [WITHIN] 30 days after 30 it is requested. The administrator shall issue a decision not later than [WITHIN] 14 31 days after the hearing. A party may seek reconsideration by the administrator or

01 review by the board of the administrator's decision under (v) of this section, or 02 modification of the administrator's decision under AS 23.30.130 [WITHIN 10 03 DAYS AFTER THE ADMINISTRATOR FILES THE DECISION, EITHER PARTY 04 MAY SEEK REVIEW OF THE DECISION BY REQUESTING A HEARING 05 UNDER AS 23.30.110; THE BOARD SHALL UPHOLD THE DECISION OF THE 06 ADMINISTRATOR UNLESS EVIDENCE IS SUBMITTED SUPPORTING AN 07 ALLEGATION OF ABUSE OF DISCRETION ON THE PART OF THE 08 ADMINISTRATOR; THE BOARD SHALL RENDER A DECISION WITHIN 30 09 DAYS AFTER COMPLETION OF THE HEARING]. 10 * Sec. 15. AS 23.30.041(q) is repealed and reenacted to read: 11 (q) Notwithstanding AS 23.30.012, an employer and employee may not reach 12 an agreement that requires the employer to pay a lump sum to the employee in 13 exchange for waiving any benefit under this section. An agreement that violates this 14 subsection is void and may not be enforced. This subsection does not apply to a job 15 dislocation benefit under (s) of this section. 16 * Sec. 16. AS 23.30.041(r)(6) is amended to read: 17 (6) "rehabilitation specialist" means a person who is a certified 18 insurance rehabilitation specialist or [,] a certified rehabilitation counselor, or [A 19 PERSON] who meets the [HAS EQUIVALENT OR BETTER] qualifications 20 specified in [AS DETERMINED UNDER] regulations adopted by the department; 21 * Sec. 17. AS 23.30.041 is amended by adding new subsections to read: 22 (s) An employee who is eligible for reemployment benefits may select a job 23 dislocation benefit instead of reemployment benefits at any stage of the reemployment 24 process but not later than 150 days after the employee receives the administrator's 25 determination of eligibility or the employee and employer stipulate to the employee's 26 eligibility. To select a job dislocation benefit, an employee shall sign and file a sworn 27 statement with the division, in a format prescribed by the director, specifying the 28 scope of benefits and rights waived by the selection. Not later than 10 days after 29 receiving the completed statement from the employee, the division shall serve a copy 30 on the administrator and the parties to the claim. The employee's selection of a job 31 dislocation benefit

01 (1) takes effect upon service of the statement on the employer; 02 (2) requires the employer to pay the employee a job dislocation benefit 03 of 04 (A) $6,500 if the employee's permanent partial impairment 05 rating is greater than zero and less than 15 percent; 06 (B) $10,500 if the employee's permanent partial impairment 07 rating is 15 percent or greater but less than 30 percent; or 08 (C) $17,500 if the employee's permanent partial impairment 09 rating is 30 percent or greater; 10 (3) ends the reemployment process on the effective date of the 11 selection; 12 (4) discharges the liability of the employer for reemployment benefits 13 on or after the effective date of the selection, but the employer shall pay costs and fees 14 incurred and compensation payable during the reemployment process before the 15 effective date of the selection; and 16 (5) may not be modified under AS 23.30.130. 17 (t) At the request of a rehabilitation specialist, an employee, or an employer, 18 the administrator may suspend the reemployment process at any time based on an 19 unusual and extenuating circumstance, evaluated every 60 days by the administrator, 20 or a change in the employee's medical condition that prevents the employee from 21 participating in the reemployment process. The running of the periods in (d), (g), (h), 22 (j), (k), and (s) of this section are suspended, and the employer may not controvert 23 benefits for noncooperation under (n) of this section from the date that the 24 administrator notifies the parties and rehabilitation specialist of a suspension. The 25 employer shall continue to pay reemployment benefits during a suspension, unless 26 benefits are controverted on grounds other than noncooperation. The administrator 27 may resume the reemployment process at the request of the rehabilitation specialist, 28 employee, or employer, or on the administrator's own initiative when the 29 circumstances that resulted in the suspension have changed or are expected to change. 30 The periods in (d), (g), (h), (j), (k), and (s) of this section continue to run again and the 31 employer may controvert benefits for noncooperation under (n) of this section from

01 the date that the administrator notifies the parties and the rehabilitation specialist that 02 the reemployment process has resumed. A party may, under (v) of this section, seek 03 reconsideration by the administrator or review by the board of the administrator's 04 decision to suspend or resume the reemployment process. 05 (u) Before an employee completes an approved reemployment plan, the 06 employer or employee may request that the rehabilitation specialist modify the plan on 07 the ground of a change in conditions or a mistake in the determination of a fact, except 08 that the time to complete and the cost of a modified plan, when combined with the 09 time spent and costs incurred under the initial plan, may not exceed the time and cost 10 limitations in (k) and (l) of this section. If the employer and employee do not agree on 11 a modified plan, either party may submit the modified plan to the administrator for 12 approval. The administrator shall issue a decision on the modified plan not later than 13 14 days after the plan is submitted. A party may seek reconsideration or board review 14 of the administrator's decision under (v) of this section, or may seek a different 15 modification of the plan under this subsection. 16 (v) An employer or employee may ask the administrator in writing to 17 reconsider a decision made under (d), (j), (o), (t), or (u) of this section not later than 14 18 days after the decision is served. The administrator shall decide a request for 19 reconsideration not later than 14 days after the administrator receives the request. A 20 party may seek review of a decision made under (d), (j), (o), (t), or (u) of this section 21 by requesting a hearing before the board under AS 23.30.110 not later than 30 days 22 after service of the initial decision or the decision on reconsideration, whichever is 23 later. The board shall uphold the administrator's decision except for an abuse of 24 discretion on the administrator's part. 25 (w) An employee who requested an eligibility evaluation or stipulated to 26 eligibility may end the reemployment process at any time. To end the reemployment 27 process, 28 (1) if the employee is eligible for reemployment benefits and the 29 period for selecting the job dislocation benefit has not run, the employee shall request 30 a job dislocation benefit under (s) of this section; 31 (2) if the employee is not eligible for the job dislocation benefit, the

01 employee shall notify the division in a format prescribed by the director; the 02 notification 03 (A) takes effect upon service to the employer; not later than 10 04 days after receiving the notification from the employee, the division shall serve 05 a copy on the administrator and the parties to the claim; 06 (B) discharges the liability of the employer for reemployment 07 and job dislocation benefits on or after the effective date of the notification, but 08 the employer shall pay costs and fees incurred and compensation payable 09 during the reemployment process before the effective date of the notification; 10 and 11 (C) may not be modified under AS 23.30.130. 12 * Sec. 18. AS 23.30.130 is amended by adding a new subsection to read: 13 (c) At the request of a party on the ground of a change in conditions or a 14 mistake in the determination of a fact, the reemployment benefits administrator may, 15 not later than one year after the initial decision was made, review and modify a 16 decision issued by the reemployment benefits administrator under AS 23.30.041 17 relating to an employee's eligibility for reemployment benefits or an employee's 18 noncooperation in the reemployment process. 19 * Sec. 19. AS 23.30.041(i) is repealed. 20 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 APPLICABILITY. (a) AS 23.30.012(a), as amended by sec. 2 of this Act, 23 AS 23.30.041(c), as amended by sec. 4 of this Act, AS 23.30.041(e), as amended by sec. 6 of 24 this Act, AS 23.30.041(g), as amended by sec. 8 of this Act, AS 23.30.041(h), as amended by 25 sec. 9 of this Act, AS 23.30.041(k), as amended by sec. 11 of this Act, AS 23.30.041(n), as 26 amended by sec. 13 of this Act, AS 23.30.041(q), as repealed and reenacted by sec. 15 of this 27 Act, AS 23.30.041(s), (t), and (w), added by sec. 17 of this Act, and the repeal of 28 AS 23.30.041(i) by sec. 19 of this Act apply to injuries occurring on or after the effective date 29 of secs. 2, 4, 6, 8, 9, 11, 13, 15, 17, and 19 of this Act. 30 (b) AS 23.30.041(d), as amended by sec. 5 of this Act, and AS 23.30.041(j), as 31 repealed and reenacted by sec. 10 of this Act, apply to injuries occurring on or after the

01 effective date of secs. 5 and 10 of this Act, except that a party may seek review by the board, 02 or reconsideration or modification of the administrator's decision on eligibility for 03 reemployment benefits or plan approval under the time frames and procedures in 04 AS 23.30.041(v), added by sec. 17 of this Act, and AS 23.30.130(c), added by sec. 18 of this 05 Act, if the administrator serves the parties with the administrator's decision on or after the 06 effective date of secs. 5, 10, 17, and 18 of this Act. 07 (c) AS 23.30.041(f), as amended by sec. 7 of this Act, applies to job dislocation 08 benefits selected, reemployment plans completed, and injuries occurring on or after the 09 effective date of sec. 7 of this Act. 10 (d) AS 23.30.041(l), as amended by sec. 12 of this Act, applies to injuries occurring 11 on or after the effective date of sec. 12 of this Act and, for purposes of an employer's payment 12 for the services of a rehabilitation specialist, applies to the services performed on or after the 13 effective date of sec. 12 of this Act. 14 (e) AS 23.30.041(o), as amended by sec. 14 of this Act, AS 23.30.041(v), added by 15 sec. 17 of this Act, and AS 23.30.130(c), added by sec. 18 of this Act, apply to decisions that 16 the administrator serves on the parties on or after the effective date of secs. 14, 17, and 18 of 17 this Act. 18 (f) AS 23.30.041(u), added by sec. 17 of this Act, applies to reemployment plans that 19 have not been completed on or after the effective date of sec. 17 of this Act, except that, if the 20 employee's plan is based on an injury occurring before the effective date of AS 23.30.041(k) 21 and (l), as amended by secs. 11 and 12 of this Act, the time to complete and the cost of a 22 modified plan, when combined with the time spent and costs incurred under the initial plan, 23 may not exceed the time and cost limitations of AS 23.30.041(k) and (l) as those subsections 24 read on the day before the effective date of secs. 11 and 12 of this Act.