SB 112: "An Act relating to the controlled substance prescription database; relating to employer-required drug testing; relating to the office of administrative hearings; relating to the Alaska Workers' Compensation Board; relating to the payment of workers' compensation or benefits; relating to compensable injuries; relating to rehabilitation and reemployment of injured workers; relating to reemployment vouchers; relating to the treatment or care of employees; relating to use of evidence-based treatment guidelines; relating to prescribing or dispensing a controlled substance to an employee for a compensable injury; relating to workers' compensation prehearings; relating to the filing of claims for workers' compensation benefits or petitions for other relief; relating to the burden of proof and credibility of witnesses in workers' compensation matters; relating to attorney fees; relating to the filing of a verified annual report; relating to permanent total disability; relating to temporary total disability; relating to group practices that provide medical treatment to an employee; relating to the prohibition of certain referrals for workers' compensation; and providing for an effective date."
00 SENATE BILL NO. 112 01 "An Act relating to the controlled substance prescription database; relating to 02 employer-required drug testing; relating to the office of administrative hearings; 03 relating to the Alaska Workers' Compensation Board; relating to the payment of 04 workers' compensation or benefits; relating to compensable injuries; relating to 05 rehabilitation and reemployment of injured workers; relating to reemployment 06 vouchers; relating to the treatment or care of employees; relating to use of evidence- 07 based treatment guidelines; relating to prescribing or dispensing a controlled substance 08 to an employee for a compensable injury; relating to workers' compensation 09 prehearings; relating to the filing of claims for workers' compensation benefits or 10 petitions for other relief; relating to the burden of proof and credibility of witnesses in 11 workers' compensation matters; relating to attorney fees; relating to the filing of a 12 verified annual report; relating to permanent total disability; relating to temporary total
01 disability; relating to group practices that provide medical treatment to an employee; 02 relating to the prohibition of certain referrals for workers' compensation; and providing 03 for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 17.30.200(b), as amended by sec. 23, ch. 25, SLA 2016, is amended to 06 read: 07 (b) The pharmacist-in-charge of each licensed or registered pharmacy, 08 regarding each schedule II, III, or IV controlled substance under federal law dispensed 09 by a pharmacist under the supervision of the pharmacist-in-charge, and each 10 practitioner who directly dispenses a schedule II, III, or IV controlled substance under 11 federal law, other than those administered to a patient at a health care facility, or who 12 prescribes a controlled substance subject to AS 23.30.096, shall submit to the 13 board, by a procedure and in a format established by the board, the following 14 information for inclusion in the database on at least a weekly basis: 15 (1) the name of the prescribing practitioner and the practitioner's 16 federal Drug Enforcement Administration registration number or other appropriate 17 identifier; 18 (2) the date of the prescription; 19 (3) the date the prescription was filled and the method of payment; this 20 paragraph does not authorize the board to include individual credit card or other 21 account numbers in the database; 22 (4) the name, address, and date of birth of the person for whom the 23 prescription was written; 24 (5) the name and national drug code of the controlled substance; 25 (6) the quantity and strength of the controlled substance dispensed; 26 (7) the name of the drug outlet dispensing the controlled substance; 27 and 28 (8) the name of the pharmacist or practitioner dispensing the controlled 29 substance and other appropriate identifying information. 30 * Sec. 2. AS 17.30.200(b), as amended by secs. 23 and 24, ch. 25, SLA 2016, is amended to
01 read: 02 (b) The pharmacist-in-charge of each licensed or registered pharmacy, 03 regarding each schedule II, III, or IV controlled substance under federal law dispensed 04 by a pharmacist under the supervision of the pharmacist-in-charge, and each 05 practitioner who directly dispenses a schedule II, III, or IV controlled substance under 06 federal law other than those administered to a patient at a health care facility, or who 07 prescribes a controlled substance subject to AS 23.30.096, shall submit to the 08 board, by a procedure and in a format established by the board, the following 09 information for inclusion in the database: 10 (1) the name of the prescribing practitioner and the practitioner's 11 federal Drug Enforcement Administration registration number or other appropriate 12 identifier; 13 (2) the date of the prescription; 14 (3) the date the prescription was filled and the method of payment; this 15 paragraph does not authorize the board to include individual credit card or other 16 account numbers in the database; 17 (4) the name, address, and date of birth of the person for whom the 18 prescription was written; 19 (5) the name and national drug code of the controlled substance; 20 (6) the quantity and strength of the controlled substance dispensed; 21 (7) the name of the drug outlet dispensing the controlled substance; 22 and 23 (8) the name of the pharmacist or practitioner dispensing the controlled 24 substance and other appropriate identifying information. 25 * Sec. 3. AS 17.30.200(d), as amended by sec. 25, ch. 25, SLA 2016, is amended to read: 26 (d) The database and the information contained within the database are 27 confidential, are not public records, are not subject to public disclosure, and may not 28 be shared with the federal government. The board shall undertake to ensure the 29 security and confidentiality of the database and the information contained within the 30 database. The board may allow access to the database only to the following persons, 31 and in accordance with the limitations provided and regulations of the board:
01 (1) personnel of the board regarding inquiries concerning licensees or 02 registrants of the board or personnel of another board or agency concerning a 03 practitioner under a search warrant, subpoena, or order issued by an administrative law 04 judge or a court; 05 (2) authorized board personnel or contractors as required for 06 operational and review purposes; 07 (3) a licensed practitioner having authority to prescribe controlled 08 substances or an agent or employee of the practitioner whom the practitioner has 09 authorized to access the database on the practitioner's behalf, to the extent the 10 information relates specifically to a current patient of the practitioner to whom the 11 practitioner is prescribing or considering prescribing a controlled substance; the agent 12 or employee must be licensed or registered under AS 08; 13 (4) a licensed or registered pharmacist having authority to dispense 14 controlled substances or an agent or employee of the pharmacist whom the pharmacist 15 has authorized to access the database on the pharmacist's behalf, to the extent the 16 information relates specifically to a current patient to whom the pharmacist is 17 dispensing or considering dispensing a controlled substance; the agent or employee 18 must be licensed or registered under AS 08; 19 (5) state and local law enforcement authorities may receive printouts of 20 information contained in the database under a search warrant or order issued by a 21 court establishing probable cause for the access and use of the information; 22 (6) an individual who is the recipient of a controlled substance 23 prescription entered into the database may receive information contained in the 24 database concerning the individual on providing evidence satisfactory to the board that 25 the individual requesting the information is in fact the person about whom the data 26 entry was made and on payment of a fee set by the board under AS 37.10.050 that 27 does not exceed $10; 28 (7) a licensed pharmacist employed by the Department of Health and 29 Social Services who is responsible for administering prescription drug coverage for 30 the medical assistance program under AS 47.07, to the extent that the information 31 relates specifically to prescription drug coverage under the program;
01 (8) a licensed pharmacist, licensed practitioner, or authorized 02 employee of the Department of Health and Social Services responsible for utilization 03 review of prescription drugs for the medical assistance program under AS 47.07, to the 04 extent that the information relates specifically to utilization review of prescription 05 drugs provided to recipients of medical assistance; 06 (9) the state medical examiner, to the extent that the information 07 relates specifically to investigating the cause and manner of a person's death; 08 (10) an authorized employee of the Department of Health and Social 09 Services may receive information from the database that does not disclose the identity 10 of a patient, prescriber, dispenser, or dispenser location, for the purpose of identifying 11 and monitoring public health issues in the state; however, the information provided 12 under this paragraph may include the region of the state in which a patient, prescriber, 13 and dispenser are located and the specialty of the prescriber; [AND] 14 (11) a practitioner, pharmacist, or clinical staff employed by an Alaska 15 tribal health organization, including commissioned corps officers of the United States 16 Public Health Service employed under a memorandum of agreement; in this 17 paragraph, "Alaska tribal health organization" has the meaning given to "tribal health 18 program" in 25 U.S.C. 1603; and 19 (12) a licensed practitioner, for the purpose of reporting to an 20 insurer, self-insured employer, or the Alaska Workers' Compensation Board 21 under AS 23.30.096. 22 * Sec. 4. AS 17.30.200(d), as amended by secs. 25 and 26, ch. 25, SLA 2016, is amended to 23 read: 24 (d) The database and the information contained within the database are 25 confidential, are not public records, are not subject to public disclosure, and may not 26 be shared with the federal government. The board shall undertake to ensure the 27 security and confidentiality of the database and the information contained within the 28 database. The board may allow access to the database only to the following persons, 29 and in accordance with the limitations provided and regulations of the board: 30 (1) personnel of the board regarding inquiries concerning licensees or 31 registrants of the board or personnel of another board or agency concerning a
01 practitioner under a search warrant, subpoena, or order issued by an administrative law 02 judge or a court; 03 (2) authorized board personnel or contractors as required for 04 operational and review purposes; 05 (3) a licensed practitioner having authority to prescribe controlled 06 substances, to the extent the information relates specifically to a current patient of the 07 practitioner to whom the practitioner is prescribing or considering prescribing a 08 controlled substance; 09 (4) a licensed or registered pharmacist having authority to dispense 10 controlled substances, to the extent the information relates specifically to a current 11 patient to whom the pharmacist is dispensing or considering dispensing a controlled 12 substance; 13 (5) state and local law enforcement authorities may receive printouts of 14 information contained in the database under a search warrant, subpoena, or order 15 issued by a court establishing probable cause for the access and use of the information; 16 [AND] 17 (6) an individual who is the recipient of a controlled substance 18 prescription entered into the database may receive information contained in the 19 database concerning the individual on providing evidence satisfactory to the board that 20 the individual requesting the information is in fact the person about whom the data 21 entry was made and on payment of a fee set by the board under AS 37.10.050 that 22 does not exceed $10; and 23 (7) a licensed practitioner, for the purpose of reporting to an 24 insurer, self-insured employer, or the Alaska Workers' Compensation Board 25 under AS 23.30.096. 26 * Sec. 5. AS 23.05.067(e) is amended to read: 27 (e) Annual service fees and civil penalties collected under this section shall be 28 deposited in the workers' safety and compensation administration account in the state 29 treasury. Under AS 37.05.146(c), the service fees and civil penalties shall be 30 accounted for separately, and appropriations from the account are not made from the 31 unrestricted general fund. The legislature may appropriate money from the account for
01 expenditures by the office of administrative hearings (AS 44.64.010) for necessary 02 costs incurred for administrative hearings required under AS 23.30 and by the 03 department for necessary costs incurred by the department in the administration of the 04 workers' safety programs contained in AS 18.60 and of the Alaska Workers' 05 Compensation Act contained in AS 23.30. Nothing in this subsection creates a 06 dedicated fund or dedicates the money in the account for a specific purpose. Money 07 deposited in the account does not lapse at the end of a fiscal year unless otherwise 08 provided by an appropriation. 09 * Sec. 6. AS 23.10.620 is amended by adding a new subsection to read: 10 (g) In addition to the tests required under (c) and (d) of this section, an 11 employer may require an employee to undergo drug testing under AS 23.30.096(b)(3) 12 if the employee has been prescribed a controlled substance described in 13 AS 17.30.200(a) by a physician under AS 23.30.096. 14 * Sec. 7. AS 23.30.001 is amended to read: 15 Sec. 23.30.001. Legislative intent. It is the intent of the legislature that 16 (1) this chapter be interpreted so as to ensure the quick, efficient, fair, 17 and predictable delivery of indemnity and medical benefits to injured workers at a 18 reasonable cost to the employers who are subject to the provisions of this chapter; 19 (2) workers' compensation cases shall be decided on their merits 20 except where otherwise provided by statute; 21 (3) this chapter may not be construed by the board, commission, 22 office of administrative hearings, and any reviewing courts in favor of a party; 23 (4) hearings in workers' compensation cases shall be impartial and fair 24 to all parties and that all parties shall be afforded due process and an opportunity to be 25 heard and for their arguments and evidence to be fairly considered; 26 (5) this chapter be strictly construed by the board, commission, 27 office of administrative hearings, and any reviewing courts; 28 (6) in determining whether a party has met the burden of proof on 29 an issue, the board, commission, office of administrative hearings, and any 30 reviewing courts weigh the evidence impartially and without presumption in 31 favor of a party except where otherwise provided by statute;
01 (7) the workers' compensation system be cost-effective to the 02 citizens of the state. 03 * Sec. 8. AS 23.30.005(a) is amended to read: 04 (a) The Alaska Workers' Compensation Board consists of two public [A 05 SOUTHERN PANEL OF THREE] members representing [SITTING FOR] the first 06 judicial district, two public [NORTHERN PANELS OF THREE] members 07 representing [SITTING FOR] the second and fourth judicial districts, eight public 08 [FIVE SOUTHCENTRAL PANELS OF THREE] members representing [EACH 09 SITTING FOR] the third judicial district, and includes [ONE PANEL OF THREE 10 MEMBERS THAT MAY SIT IN ANY JUDICIAL DISTRICT. EACH PANEL 11 MUST INCLUDE] the commissioner of labor and workforce development. The 12 public members in each judicial district must equally consist of representatives of 13 industry and [OR A HEARING OFFICER DESIGNATED TO REPRESENT THE 14 COMMISSIONER, A REPRESENTATIVE OF INDUSTRY, AND A 15 REPRESENTATIVE OF] labor. The public members [LATTER TWO MEMBERS 16 OF EACH PANEL] shall be appointed by the governor and are subject to 17 confirmation by a majority of the members of the legislature in joint session. The 18 board shall by regulation provide procedures to avoid conflicts and the appearance of 19 impropriety in hearings. 20 * Sec. 9. AS 23.30.005(b) is amended to read: 21 (b) The commissioner shall act as chair and executive officer of the board and 22 chair of any hearing [EACH] panel. The commissioner may designate a 23 representative to act for the commissioner as chair and executive officer of the board. 24 The commissioner may designate hearing officers to serve as chairs of panels for 25 hearing settlement agreements under AS 23.30.012 or claims arising under 26 AS 23.30.015 or 23.30.247. These hearings may be by telephonic means and do 27 not need to be held in the judicial district where the injury occurred [CLAIMS]. 28 * Sec. 10. AS 23.30.005(c) is amended to read: 29 (c) [THE GOVERNOR SHALL APPOINT THE MEMBERS OF THE 30 PANELS.] Each member, except the commissioner of labor and workforce 31 development, serves a term of three years. The term of a management member and the
01 term of a labor member of each panel may not expire in the same year. The 02 management and labor members are entitled to compensation in the amount of $50 a 03 day for each day or portion of a day spent in actual meeting or on authorized official 04 business incidental to their duties and to all other transportation and per diem as 05 provided by law. 06 * Sec. 11. AS 23.30.005(e) is amended to read: 07 (e) A member of one judicial district [PANEL] may serve on any 08 [ANOTHER] panel [WHEN THE COMMISSIONER CONSIDERS IT NECESSARY 09 FOR THE PROMPT ADMINISTRATION OF THIS CHAPTER. TRANSFERS 10 SHALL BE ALLOWED ONLY IF A LABOR OR MANAGEMENT 11 REPRESENTATIVE REPLACES A COUNTERPART ON THE OTHER PANEL]. 12 * Sec. 12. AS 23.30.005(g) is amended to read: 13 (g) A claim or petition for other relief must be heard by administrative 14 law judges from the office of administrative hearings on a rotating basis and 15 these proceedings will be subject to AS 44.62 (Administrative Procedure Act), 16 except as otherwise provided in this chapter [MAY BE HEARD BY ONLY ONE 17 PANEL]. 18 * Sec. 13. AS 23.30.005(h) is amended to read: 19 (h) The department [SHALL ADOPT RULES FOR ALL PANELS, AND 20 PROCEDURES FOR THE PERIODIC SELECTION, RETENTION, AND 21 REMOVAL OF BOTH REHABILITATION SPECIALISTS AND PHYSICIANS 22 UNDER AS 23.30.041 AND 23.30.095, AND] shall adopt regulations to carry out the 23 provisions of this chapter, except on matters over which AS 44.62 (Administrative 24 Procedure Act) controls. [THE DEPARTMENT MAY BY REGULATION 25 PROVIDE FOR PROCEDURAL, DISCOVERY, OR STIPULATED MATTERS TO 26 BE HEARD AND DECIDED BY THE COMMISSIONER OR A HEARING 27 OFFICER DESIGNATED TO REPRESENT THE COMMISSIONER RATHER 28 THAN A PANEL. IF A PROCEDURAL, DISCOVERY, OR STIPULATED 29 MATTER IS HEARD AND DECIDED BY THE COMMISSIONER OR A 30 HEARING OFFICER DESIGNATED TO REPRESENT THE COMMISSIONER, 31 THE ACTION TAKEN IS CONSIDERED THE ACTION OF THE FULL BOARD
01 ON THAT ASPECT OF THE CLAIM. PROCESS AND PROCEDURE UNDER 02 THIS CHAPTER SHALL BE AS SUMMARY AND SIMPLE AS POSSIBLE. THE 03 DEPARTMENT, THE BOARD OR A MEMBER OF IT MAY FOR THE 04 PURPOSES OF THIS CHAPTER SUBPOENA WITNESSES, ADMINISTER OR 05 CAUSE TO BE ADMINISTERED OATHS, AND MAY EXAMINE OR CAUSE TO 06 HAVE EXAMINED THE PARTS OF THE BOOKS AND RECORDS OF THE 07 PARTIES TO A PROCEEDING THAT RELATE TO QUESTIONS IN DISPUTE.] 08 The superior court, upon [ON] application of the department, the board or any 09 members of it, or the office of administrative hearings shall enforce the attendance 10 and testimony of witnesses and the production and examination of books, papers, and 11 records. 12 * Sec. 14. AS 23.30.005(i) is amended to read: 13 (i) The department may adopt regulations concerning the medical care 14 provided for in this chapter. In addition to the reports required of physicians under 15 AS 23.30.095(a) - (d), the board may direct a physician or hospital rendering medical 16 treatment or service under this chapter to furnish to the board or office of 17 administrative hearings periodic reports of treatment or services on forms procured 18 from the board. 19 * Sec. 15. AS 23.30.005(j) is amended to read: 20 (j) The board may also arrange to have hearings held by the commission, 21 officer, or tribunal having authority to hear cases arising under the workers' 22 compensation law of any other state, of the District of Columbia, or of any territory of 23 the United States. The testimony and proceedings at the hearing shall be reported to 24 the board and are a part of the record in the case. Evidence taken at the hearing is 25 subject to rebuttal upon final hearing before the office of administrative hearings 26 [BOARD]. 27 * Sec. 16. AS 23.30.007(a) is amended to read: 28 (a) There is established in the Department of Labor and Workforce 29 Development the Workers' Compensation Appeals Commission. The commission has 30 jurisdiction to hear appeals from final decisions and orders of the board and the office 31 of administrative hearings under this chapter. Jurisdiction of the commission is
01 limited to administrative appeals arising under this chapter. 02 * Sec. 17. AS 23.30.008(a) is amended to read: 03 (a) The commission shall be the exclusive and final authority for the hearing 04 and determination of all questions of law and fact arising under this chapter in those 05 matters that have been appealed to the commission, except for an appeal to the Alaska 06 Supreme Court. The commission does not have jurisdiction in any case that does not 07 arise under this chapter or in any criminal case. On any matter taken to the 08 commission, the decision of the commission is final and conclusive, unless appealed 09 to the Alaska Supreme Court, and shall stand in lieu of the order of the office of 10 administrative hearings [BOARD] from which the appeal was taken. Unless 11 reversed by the Alaska Supreme Court, decisions of the commission have the force of 12 legal precedent. 13 * Sec. 18. AS 23.30.008(b) is amended to read: 14 (b) The commission, in its administrative capacity, shall maintain, index, and 15 make available for public inspection the final administrative decisions and orders of 16 the commission, [AND OF] the office of administrative hearings, and the board. 17 The chair of the commission may review and circulate among the other members of 18 the relevant commission appeal panel the drafts of the panel's formal decisions and 19 decisions upon reconsideration. The drafts are confidential documents and are not 20 subject to disclosure. 21 * Sec. 19. AS 23.30.010(a) is repealed and reenacted to read: 22 (a) The employer shall pay compensation or furnish benefits required by this 23 chapter if the employee suffers an accidental compensable injury or death arising out 24 of work performed in the course and the scope of employment. The injury, its 25 occupational cause, and any resulting manifestations or disability must be established 26 to a reasonable degree of medical certainty, based on relevant objective medical 27 evidence, and the accidental compensable injury must be the major contributing cause 28 of any resulting condition, disability, or need for medical treatment. In cases involving 29 occupational disease or repetitive exposure, both causation and sufficient exposure to 30 support causation must be proven by clear and convincing evidence. Under this 31 chapter, pain or other subjective complaints are not compensable in the absence of
01 objective relevant medical evidence that correlate to the subjective complaints of the 02 injured employee and are confirmed by physical examination findings or diagnostic 03 testing. The causal relationship between a compensable accident and injuries or 04 conditions that are not readily observable must be established through medical 05 evidence by physical examination findings or diagnostic testing. 06 * Sec. 20. AS 23.30.010 is amended by adding new subsections to read: 07 (c) This chapter does not require the payment of compensation or benefits for 08 a subsequent injury the employee suffers as a result of an original injury arising out of 09 and in the course of employment unless the original injury is the major contributing 10 cause of the subsequent injury. 11 (d) If an injury arising out of and in the course of employment aggravates or 12 combines with a preexisting disease or condition to cause or prolong a condition, 13 disability, or the need for treatment, the employer shall pay compensation or benefits 14 required under this chapter to the extent that the injury arising out of and in the course 15 of employment is and remains the major contributing cause of the disability or need 16 for treatment. 17 (e) To be considered a major contributing cause under this chapter, the 18 compensable injury must be more than 50 percent responsible for the injury as 19 compared to all other causes combined for which treatment or benefits are sought and 20 may be demonstrated only by objective medical evidence. 21 * Sec. 21. AS 23.30.015(b) is amended to read: 22 (b) Acceptance of compensation under an award in a compensation order filed 23 by the office of administrative hearings [BOARD] operates as an assignment to the 24 employer of all rights of the person entitled to compensation and the personal 25 representative of a deceased employee to recover damages from the third person 26 unless the person or representative entitled to compensation commences an action 27 against the third person within one year after an award. 28 * Sec. 22. AS 23.30.015(e) is amended to read: 29 (e) An amount recovered by the employer under an assignment, whether by 30 action or compromise, shall be distributed as follows: 31 (1) the employer shall retain an amount equal to
01 (A) the expenses incurred by the employer with respect to the 02 action or compromise, including a reasonable attorney fee determined by the 03 office of administrative hearings [BOARD]; 04 (B) the cost of all benefits actually furnished by the employer 05 under this chapter; 06 (C) all amounts paid as compensation and second-injury fund 07 payments, and if the employer is self-insured or uninsured, all service fees paid 08 under AS 23.05.067; 09 (D) the present value of all amounts payable later as 10 compensation, computed from a schedule prepared by the office of 11 administrative hearings [BOARD], and the present value of the cost of all 12 benefits to be furnished later under AS 23.30.095 as estimated by the office of 13 administrative hearings [BOARD]; the amounts so computed and estimated 14 shall be retained by the employer as a trust fund to pay compensation and the 15 cost of benefits as they become due and to pay any finally remaining excess 16 sum to the person entitled to compensation or to the representative; and 17 (2) the employer shall pay any excess to the person entitled to 18 compensation or to the representative of that person. 19 * Sec. 23. AS 23.30.030(6) is amended to read: 20 (6) All claims for compensation, death benefits, physician's fees, 21 nurse's charges, hospital services, hospital supplies, medicines, prosthetic devices, 22 transportation charges to the nearest point where adequate medical facilities are 23 available, and burial expenses may be made directly against either the employer or the 24 insurer, or both, and the order or award of the office of administrative hearings 25 [BOARD] may be made against either the employer or the insurer or both. 26 * Sec. 24. AS 23.30.040(a) is amended to read: 27 (a) There is created a second injury fund, administered by the commissioner. 28 Money in the second injury fund may only be paid for the benefit of those persons 29 entitled to payment of benefits from the second injury fund under this chapter. 30 Payments from the second injury fund must be made by the commissioner in 31 accordance with the orders and awards of the office of administrative hearings
01 [BOARD]. 02 * Sec. 25. AS 23.30.040(d) is amended to read: 03 (d) The office of administrative hearings [BOARD] may refund a payment 04 made into the second injury fund if the employer or insurance carrier shows that it 05 made the payment by mistake or inadvertence, or if it shows there existed at the time 06 of the death of the employee a beneficiary entitled to benefits under AS 23.30.215. 07 * Sec. 26. AS 23.30.041 is repealed and reenacted to read: 08 Sec. 23.30.041. Rehabilitation and reemployment of injured workers. (a) 09 The director shall select and employ a reemployment benefits administrator. The 10 director may authorize the administrator to select and employ additional staff. The 11 administrator is in the partially exempt service under AS 39.25.120. 12 (b) The administrator shall enforce regulations adopted by the board to 13 implement this section. 14 (c) If the employee is medically stable, the injury causes a permanent partial 15 impairment rating equal to or greater than five percent, and the employee's attending 16 physician or employer independent physician has determined that the employee will 17 be permanently incapable of returning to the employee's occupation at the time of 18 injury upon review of a job description prepared in accordance with the most recent 19 version of the United States Department of Labor's "Selected Characteristics of 20 Occupations Defined in the Revised Dictionary of Occupational Titles." The employee 21 shall be entitled to a reemployment voucher as provided in this section, unless the 22 employer makes an offer of suitable alternative employment that meets the following 23 criteria: 24 (1) the offer is made within 90 days after receiving the first report from 25 the employee's attending physician or employer independent physician, on a form 26 created by the board, that the employee is medically stable, has a permanent partial 27 impairment rating equal to or greater than five percent, and will be permanently 28 incapable of returning to the employee's occupation at the time of injury, as described 29 in accordance with the most recent version of the United States Department of Labor's 30 "Selected Characteristics of Occupations Defined in the Revised Dictionary of 31 Occupational Titles";
01 (2) if the employer or claims adjuster has provided the physician with a 02 job description of the employer's proposed modified work, or proposed alternative 03 work, the physician shall indicate whether the employee has the physical or mental 04 requirements to perform the duties described in that job description; and 05 (3) the offer is for regular work, modified work, or alternative work 06 that will last at least 12 months and pay the employee at least 75 percent of wages 07 earned at the time of injury. 08 (d) If an offer of suitable work cannot be timely made, the employer or claims 09 adjuster shall issue a voucher, on a form prescribed by the board, within 14 days after 10 expiration of the 90-day deadline for making an offer of suitable alternative 11 employment under (c) of this section. 12 (e) An employee may receive a reemployment voucher after the employee 13 attains medical stability, receives a permanent partial impairment rating equal to or 14 greater than five percent from the employee's attending physician or employer's 15 independent physician, and the employee's attending physician or employer's 16 independent physician determines that the employee is permanently incapable of 17 returning to the employee's occupation at the time of injury as determined under (c) of 18 this section, based on the following amounts: 19 (1) $18,000 if the permanent partial impairment rating is five percent 20 or more but less than 15 percent; 21 (2) $23,000 if the permanent partial impairment rating is 15 percent or 22 more, but less than 30 percent; or 23 (3) $28,000 if the permanent partial impairment rating is 30 percent or 24 more. 25 (f) A voucher issued under this section may be applied toward a retraining 26 program chosen by the employee. The voucher may be used for payment of tuition, 27 fees, books, tools, and other expenses required by the school, institution, or 28 educational organization for retraining or skill enhancement. The board shall adopt 29 regulations governing the form of payment, direct payment to the school, institution, 30 or educational organization, reimbursement to the employee upon presentation to the 31 employer of appropriate documentation and receipts, and other matters necessary to
01 administer the reemployment benefit. 02 (g) Up to $1,000 of a voucher issued under this section may be paid as a 03 miscellaneous expense, reimbursement, or advance payable to the employee upon 04 request and without need for itemized documentation or accounting. An amount 05 greater than $1,000 must be agreed upon by the parties. The employee will not be 06 entitled to a voucher payment for transportation, travel expenses, telephone or Internet 07 access, clothing, uniforms, or other incidental expenses. 08 (h) A voucher under this section expires two years after the date the voucher is 09 furnished to the employee or five years after the date of injury. The employee will not 10 be entitled to payment or reimbursement of any expenses that have not been incurred 11 and submitted with appropriate documentation to the employer after the reemployment 12 voucher expiration date. If the employee requests, in writing on a form prescribed by 13 the board, assistance in helping the employee identify or develop a plan, the employer 14 or claims adjuster shall, within 30 days, provide the employee with a vocational 15 rehabilitation specialist of the employer's or claims adjuster's choice to provide 16 vocational rehabilitation counseling to the employee. The vocational rehabilitation 17 specialist may not be paid more than 15 percent of the voucher amount to provide 18 counseling to the employee and must be paid by the employer in addition to the 19 reemployment voucher amount under (e) of this section. The employee shall cooperate 20 and stay in contact with the vocational rehabilitation specialist on a full-time basis, as 21 an extension of time of the deadline under (h) of this section is not allowed. The 22 vocational rehabilitation specialist shall meet with the employee and perform the work 23 necessary to assist the employee in returning to work or retraining counseling within 24 30 days of assignment. It is not the duty of the vocational rehabilitation specialist to 25 prepare a formal vocational rehabilitation plan or to secure employment for the 26 employee. 27 (i) The voucher amounts under (e) of this section may not be paid to the 28 employee, except as provided under (f) of this section, and may not be calculated into 29 any settlement figures as part of any compromise and release. 30 (j) An employer may not be liable for compensation for injuries incurred by 31 the employee while using a voucher issued under this section.
01 (k) The employee may not be entitled to any further remuneration, wage 02 replacement, or other indemnity benefit while undergoing retraining, other than the 03 lump-sum payment of permanent partial impairment under AS 23.30.190. 04 (l) The employer or claims adjuster may select a vocational rehabilitation 05 specialist to prepare job descriptions under this section. Before using the job 06 descriptions under (c) of this section, the vocational rehabilitation specialist shall 07 submit the job descriptions chosen for the employee for the employee's agreement to 08 the employee. If the employee does not agree with the job descriptions chosen for use 09 under (c) of this section, the employee shall file a request for review on a form 10 prescribed by the board to the administrator within seven days after receiving the job 11 descriptions. The administrator shall review, and issue an order either approving or 12 disapproving, the descriptions chosen for use under (c) of this section within 10 days 13 and, in the order, state which job descriptions are appropriate according to the most 14 recent version of the United States Department of Labor's "Selected Characteristics of 15 Occupations Defined in the Revised Dictionary of Occupational Titles." If the 16 employee or the administrator fails to meet the deadlines under this subsection, the job 17 descriptions chosen by the vocational rehabilitation specialist will be considered 18 appropriate. If a dispute arises regarding the job descriptions under (c) of this section, 19 the 90-day deadline under (c) of this section shall be tolled until the deadlines under 20 this subsection have been exhausted. 21 (m) An employee may not receive permanent total disability benefits under 22 AS 23.30.180 if the employee 23 (1) rejects or fails to accept, in the form and manner prescribed by the 24 board, suitable alternative employment under (c) of this section; or 25 (2) qualifies for a voucher under this section and fails to use the 26 voucher. 27 (n) In this section, 28 (1) "administrator" means the reemployment benefits administrator 29 under (a) of this section; 30 (2) "rehabilitation specialist" means a person who is a certified 31 vocational rehabilitation specialist, a certified rehabilitation counselor, or a person
01 who has equivalent or better qualifications as determined under regulations adopted by 02 the department. 03 * Sec. 27. AS 23.30.070(f) is amended to read: 04 (f) An employer who fails or refuses to send a report required of the employer 05 by this section or who fails or refuses to send the report required by (a) of this section 06 within the time required shall, if so required by the office of administrative hearings 07 [BOARD], pay the employee or the legal representative of the employee or other 08 person entitled to compensation by reason of the employee's injury or death an 09 additional award equal to 20 percent of the amounts that were unpaid when due. The 10 award shall be against either the employer or the insurance carrier, or both. 11 * Sec. 28. AS 23.30.095(a) is amended to read: 12 (a) The employer shall furnish medical, surgical, and other attendance or 13 treatment, nurse and hospital service, medicine, crutches, and apparatus for the injury 14 in accordance with evidence-based treatment guidelines based on the most recent 15 version of the Official Disability Guidelines published by the Work Loss Data 16 Institute. If medical treatment is recommended after two years from the date of 17 injury to the employee, the employee may not be afforded the presumption of 18 compensability under AS 23.30.120(a), but [PERIOD WHICH THE NATURE OF 19 THE INJURY OR THE PROCESS OF RECOVERY REQUIRES, NOT 20 EXCEEDING TWO YEARS FROM AND AFTER THE DATE OF INJURY TO 21 THE EMPLOYEE. HOWEVER, IF THE CONDITION REQUIRING THE 22 TREATMENT, APPARATUS, OR MEDICINE IS A LATENT ONE, THE TWO- 23 YEAR PERIOD RUNS FROM THE TIME THE EMPLOYEE HAS KNOWLEDGE 24 OF THE NATURE OF THE EMPLOYEE'S DISABILITY AND ITS 25 RELATIONSHIP TO THE EMPLOYMENT AND AFTER DISABLEMENT. IT 26 SHALL BE ADDITIONALLY PROVIDED THAT, IF CONTINUED TREATMENT 27 OR CARE OR BOTH BEYOND THE TWO-YEAR PERIOD IS INDICATED,] the 28 injured employee has the right of review by the office of administrative hearings 29 [BOARD]. The office of administrative hearings [BOARD] may authorize 30 continued treatment or care or both as the process of recovery may require, for up to 31 an additional two years upon clear and convincing evidence, that the continued
01 treatment or care is necessary. When medical care is required, the injured employee 02 may designate a licensed physician to provide all medical and related benefits. Any 03 time after acceptance of liability by an employer or insurer, the employer or 04 insurer may designate a different attending physician. Designation by the 05 employer or insurer of an attending physician does not constitute the employer's 06 or insurer's right to an employer independent medical examination under (e) of 07 this section. The employee may not make more than one change in the employee's 08 choice of attending physician without the written consent of the employer. Referral to 09 a specialist by the employee's attending physician is not considered a change in 10 physicians, but a referral to a specialist by the employee's attending physician 11 within the same specialty is considered a change in physician. Upon procuring the 12 services of a physician, the injured employee shall give proper notification of the 13 selection to the employer within a reasonable time after first being treated. Notice of a 14 change in the attending physician shall be given before the change. After expiration 15 of an additional two years for continued treatment or care under this subsection, 16 no further medical treatment may be authorized except for 17 (1) prosthetic devices, braces, and supports; 18 (2) non-narcotic prescription medications; 19 (3) narcotic prescription medications necessary to allow the 20 employee to continue to work or participate in vocational rehabilitation; 21 (4) services necessary to monitor the status, replacement, or repair 22 of prosthetic devices, braces, and supports or to prescribe prescription 23 medications under (2) or (3) of this subsection; and 24 (5) life-preserving modalities similar to insulin therapy, dialysis, 25 and transfusions, if related to the claimed injury or exposure. 26 * Sec. 29. AS 23.30.095(c) is amended to read: 27 (c) A claim for medical or surgical treatment, or treatment requiring 28 continuing and multiple treatments of a similar nature, is not valid and enforceable 29 against the employer unless, within 14 days following treatment, the physician or 30 health care provider giving the treatment or the employee receiving it furnishes to the 31 employer and the office of administrative hearings [BOARD] notice of the injury
01 and treatment, preferably on a form prescribed by the board. The office of 02 administrative hearings [BOARD] shall, however, excuse the failure to furnish 03 notice within 14 days when it finds it to be in the interest of justice to do so, and it 04 may, upon application by a party in interest, make an award for the reasonable value 05 of the medical or surgical treatment so obtained by the employee. When a claim is 06 made for a course of treatment requiring continuing and multiple treatments of a 07 similar nature, in addition to the notice, the physician or health care provider shall 08 furnish a written treatment plan if the course of treatment will require more frequent 09 outpatient visits than the standard treatment frequency for the nature and degree of the 10 injury and the type of treatments. The treatment plan shall be furnished to the 11 employee and the employer within 14 days after treatment begins. The treatment plan 12 must include objectives, modalities, frequency of treatments, and reasons for the 13 frequency of treatments. If the treatment plan is not furnished as required under this 14 subsection, neither the employer nor the employee may be required to pay for 15 treatments [THAT EXCEED THE FREQUENCY STANDARD. THE BOARD 16 SHALL ADOPT REGULATIONS ESTABLISHING STANDARDS FOR 17 FREQUENCY OF TREATMENT]. 18 * Sec. 30. AS 23.30.095(d) is amended to read: 19 (d) If, at any time during the period the employee unreasonably refuses to 20 submit to medical or surgical treatment or appropriate diagnostic tests, the office of 21 administrative hearings [BOARD] may by order suspend the payment of further 22 compensation while the refusal continues, and no compensation may be paid at any 23 time during the period of suspension, unless the circumstances justified the refusal. 24 * Sec. 31. AS 23.30.095(e) is amended to read: 25 (e) The employee shall, after an injury, at reasonable times during the 26 continuance of the disability, if requested by the employer or when ordered by the 27 office of administrative hearings [BOARD], submit to an examination by a 28 physician, [OR] surgeon, or mental health provider of the employer's choice 29 authorized to practice medicine under the laws of the jurisdiction in which the 30 examination occurs, furnished and paid for by the employer. The employer may not 31 make more than one change in the employer's choice of a physician or surgeon
01 without the written consent of the employee. Referral to a specialist by the employer's 02 physician is not considered a change in physicians. An examination requested by the 03 employer not less than 14 days after injury, and every 60 days thereafter, shall be 04 presumed to be reasonable, and the employee shall submit to the examination without 05 further request or order by the office of administrative hearings [BOARD]. Unless 06 medically appropriate, the physician shall use existing diagnostic data to complete the 07 examination. Facts relative to the injury or claim communicated to or otherwise 08 learned by a physician or surgeon who may have attended or examined the employee, 09 or who may have been present at an examination are not privileged, either in the 10 hearings provided for in this chapter or an action to recover damages against an 11 employer who is subject to the compensation provisions of this chapter. If an 12 employee refuses to submit to an examination provided for in this section, the 13 employee's rights to compensation shall be suspended until the obstruction or refusal 14 ceases, and the employee's compensation during the period of suspension may, in the 15 discretion of the office of administrative hearings [BOARD] or the court 16 determining an action brought for the recovery of damages under this chapter, be 17 forfeited. The office of administrative hearings [BOARD] in any case of death may 18 require an autopsy at the expense of the party requesting the autopsy. An autopsy may 19 not be held without notice first being given to the widow or widower or next of kin if 20 they reside in the state or their whereabouts can be reasonably ascertained, of the time 21 and place of the autopsy and reasonable time and opportunity given the widow or 22 widower or next of kin to have a representative present to witness the autopsy. If 23 adequate notice is not given, the findings from the autopsy may be suppressed on 24 motion made to the office of administrative hearings [BOARD] or to the superior 25 court, as the case may be. 26 * Sec. 32. AS 23.30.095(h) is amended to read: 27 (h) Upon the filing with the office of administrative hearings [DIVISION] 28 by a party in interest of a claim or other pleading, all parties to the proceeding shall 29 file with the office of administrative hearings, [MUST IMMEDIATELY, OR IN 30 ANY EVENT] within 30 [FIVE] days after service of the pleading, [SEND TO THE 31 DIVISION] the original signed reports of all physicians relating to the proceedings
01 that they may have in their possession or under their control, and copies of the reports 02 shall be served by the party immediately on any adverse party. There is a continuing 03 duty on all parties to file and serve all the reports during the pendency of the 04 proceeding. 05 * Sec. 33. AS 23.30.095(j) is amended to read: 06 (j) The commissioner shall appoint a medical services review committee to 07 assist and advise the department and the office of administrative hearings [BOARD] 08 in matters involving the appropriateness, necessity, and cost of medical and related 09 services provided under this chapter. The medical services review committee shall 10 consist of nine members to be appointed by the commissioner as follows: 11 (1) one member who is a member of the Alaska State Medical 12 Association; 13 (2) one member who is a member of the Alaska Chiropractic Society; 14 (3) one member who is a member of the Alaska State Hospital and 15 Nursing Home Association; 16 (4) one member who is a health care provider, as defined in 17 AS 09.55.560; 18 (5) four public members who are not within the definition of "health 19 care provider" in AS 09.55.560; and 20 (6) one member who is the designee of the commissioner and who 21 shall serve as chair. 22 * Sec. 34. AS 23.30.095(o) is amended to read: 23 (o) Notwithstanding (a) of this section, an employer is not liable for palliative 24 care after the date of medical stability unless the palliative care is consistent with the 25 evidence-based treatment guidelines established in (a) of this section 26 [REASONABLE] and necessary [(1)] to enable the employee to continue in the 27 employee's employment at the time of treatment [, (2) TO ENABLE THE 28 EMPLOYEE TO CONTINUE TO PARTICIPATE IN AN APPROVED 29 REEMPLOYMENT PLAN, OR (3) TO RELIEVE CHRONIC DEBILITATING 30 PAIN]. A claim for palliative care is not valid and enforceable unless it is 31 accompanied by a certification of the attending physician that the palliative care meets
01 the requirements of this subsection. A claim for palliative care is subject to the 02 requirements of (c) - (n) of this section. [IF A CLAIM FOR PALLIATIVE CARE IS 03 CONTROVERTED BY THE EMPLOYER, THE BOARD MAY REQUIRE AN 04 EVALUATION UNDER (k) OF THIS SECTION REGARDING THE DISPUTED 05 PALLIATIVE CARE.] A claim for palliative care may be heard by the office of 06 administrative hearings [BOARD] under AS 23.30.110. 07 * Sec. 35. AS 23.30.095 is amended by adding new subsections to read: 08 (p) An entity that provides durable medical equipment, prosthetics, orthotics, 09 or supplies to an employee must be accredited by an accreditation organization 10 approved by the federal Centers for Medicare and Medicaid Services. If a medical 11 provider provides durable medical equipment, prosthetics, orthotics, or supplies 12 ancillary to the employee's visit, reimbursement or payment by the employer or 13 insurer may not exceed 10 percent of the cost of the durable medical equipment, 14 prosthetics, orthotics, or supplies. 15 (q) If prescription drugs are dispensed by a medical provider as part of the 16 medical treatment provided to an employee, the employer or insurer may only be 17 required to pay the lesser of the 18 (1) reimbursement amount specified under the schedule of fees 19 adopted by the director; 20 (2) reimbursement amount for prescription drugs obtained by mail 21 order; or 22 (3) cost of the prescription if obtained at a pharmacy. 23 * Sec. 36. AS 23.30 is amended by adding a new section to read: 24 Sec. 23.30.096. Controlled substances. (a) Within two business days after 25 prescribing or dispensing a supply of 30 or more days of a controlled substance 26 described in AS 17.30.200(a) to an employee for a compensable injury, a physician 27 shall submit a report to the Board of Pharmacy under AS 17.30.200 and request the 28 employee's prescription information that is compiled and maintained under 29 AS 17.30.200. Notwithstanding AS 17.30.200(d), the physician shall report the results 30 to the employer and office of administrative hearings as soon as practicable, but not 31 later than 30 days after the date of the inquiry. Thereafter, the employer or office of
01 administrative hearings may, not more than once every two months, request that the 02 physician make additional inquiries to the Board of Pharmacy under AS 17.30.200. 03 (b) A physician shall include in a report required under (a) of this section 04 (1) the employee's prescription information, including the 05 (A) off-label use of a narcotic, opium-based controlled 06 substance, or other controlled substance described in AS 17.30.200(a) 07 prescribed to the employee; 08 (B) use of a narcotic or opium-based controlled substance or 09 the prescription of a combination of narcotics or opium-based controlled 10 substances at or exceeding a 120 milligram morphine equivalent dose a day; 11 and 12 (C) prescription of a long-acting or controlled-release opioid 13 for acute pain; 14 (2) the justification for the use of the controlled substance and a 15 treatment plan that includes a description of measures that the physician will 16 implement to monitor and prevent the development of abuse, dependence, addiction, 17 or diversion by the employee; and 18 (3) a medication agreement, a plan for subsequent follow-up visits, 19 random drug testing, and documentation that the medication regime is providing relief 20 that is demonstrated by clinically meaningful improvement in function. 21 (c) If a drug test under (b)(3) of this section reveals inconsistent results, the 22 physician shall, within five business days after receiving the inconsistent results, 23 provide a written report to the employer and office of administrative hearings setting 24 out a treatment plan to address the inconsistent drug test results. 25 (d) If the result of an inquiry to the Board of Pharmacy under (a) of this 26 section reveals that the employee is receiving a controlled substance described in 27 AS 17.30.200(a) from another undisclosed health care provider, the physician shall, 28 within five business days after receiving the results, on a form prescribed by the board, 29 report the results to the employer. 30 (e) If an employee resides outside the state and receives treatment from an 31 out-of-state physician for a compensable injury, the employer is not liable for
01 providing prescription medications that require reporting under this section if the out- 02 of-state physician fails to comply with this section. If the other state has a controlled 03 substances monitoring program, the out-of-state physician shall submit an inquiry to 04 the out-of-state database and report to the employer and office of administrative 05 hearings as prescribed under this section. 06 (f) This section does not apply to prescription medications administered to the 07 employee while the employee is receiving inpatient hospital treatment. 08 (g) The employer or office of administrative hearings may require a physician 09 to comply with this section, notwithstanding the existence of a prior award addressing 10 medical maintenance benefits for prescription medications. An insurer or employer is 11 not liable for bad faith or unfair claims processing under AS 21.36 for an act taken in 12 compliance with or consistent with this section. 13 (h) If a physician fails to comply with this section, 14 (1) the employer is not liable for payment of the physician's services 15 until the physician complies with this section; and 16 (2) the employer may request a change of physician after making a 17 written request to the physician to comply with this section and identifying the area of 18 noncompliance; if a change of physician is ordered and the order becomes final, the 19 employee shall select a physician whose practice includes pain management and who 20 agrees to comply with this section. 21 (i) In this section, 22 (1) "clinically meaningful improvement in function" means 23 (A) a clinically documented improvement in range of motion; 24 (B) an objective increase in the performance of activities of 25 daily living; or 26 (C) a return to gainful employment. 27 (2) "inconsistent results" means 28 (A) the employee's reported medications or the parent drugs or 29 metabolites are not detected; or 30 (B) controlled substances are detected that are not reported by 31 the employee;
01 (3) "off-label use" means use of a prescription medication by a 02 physician to treat a condition other than the use for which the drug was approved by 03 the United States Food and Drug Administration. 04 * Sec. 37. AS 23.30.097(d) is amended to read: 05 (d) Payment for medical treatment under this chapter, excluding 06 prescription charges or transportation for medical treatment, is not due 07 immediately or on demand. An employer shall pay an employee's bills for medical 08 treatment under this chapter, excluding prescription charges or transportation for 09 medical treatment, within 30 days after the date that the employer receives the 10 provider's bill and [OR] a completed report as required by AS 23.30.095(c), 11 regardless of whether the employer has earlier notice that medical treatment has 12 been prescribed for the employee [WHICHEVER IS LATER]. 13 * Sec. 38. AS 23.30.097(g) is amended to read: 14 (g) Unless the employer controverts a charge, the employer shall reimburse an 15 employee's prescription charges under this chapter within 30 days after the employer 16 receives the employee's request for reimbursement, the health care provider's 17 completed report and an itemization of the prescription charges for the employee. 18 Unless the employer controverts a charge, an employer shall reimburse any 19 transportation expenses for medical treatment under this chapter within 30 days after 20 the employer receives the health care provider's completed report and an itemization 21 of the dates, destination, and transportation expenses for each date of travel for 22 medical treatment. If the employer does not plan to make or does not make payment or 23 reimbursement in full as required by this subsection, the employer shall notify the 24 employee and the employee's health care provider in writing that payment will not be 25 made timely and the reason for the nonpayment. The notification must be provided not 26 later than the date that the payment is due under this subsection. 27 * Sec. 39. AS 23.30.100(d) is amended to read: 28 (d) Failure to give notice does not bar a claim under this chapter 29 (1) if the employer, an agent of the employer in charge of the business 30 in the place where the injury occurred, or the carrier had knowledge of the injury or 31 death and the office of administrative hearings [BOARD] determines that the
01 employer or carrier has not been prejudiced by failure to give notice; 02 (2) if the office of administrative hearings [BOARD] excuses the 03 failure on the ground that for some satisfactory reason notice could not be given; 04 (3) unless objection to the failure is raised before the office of 05 administrative hearings [BOARD] at the first hearing of a claim for compensation in 06 respect to the injury or death. 07 * Sec. 40. AS 23.30.105(a) is amended to read: 08 (a) The right to compensation for benefits [DISABILITY] under this chapter 09 is barred unless a claim for it is filed within two years after the employee has 10 knowledge of the nature of the employee's disability or need for medical treatment 11 and its relation to the employment [AND AFTER DISABLEMENT]. However, the 12 maximum time for filing the claim in any event other than arising out of an 13 occupational disease shall be four years from the date of injury, and the right to 14 compensation for death is barred unless a claim therefor is filed within one year after 15 the death, except that, if payment of compensation has been made without an award on 16 account of the injury or death, a claim may be filed within two years after the date of 17 the last payment of benefits under AS 23.30.041, 23.30.180, 23.30.185, 23.30.190, 18 23.30.200, or 23.30.215. In [IT IS ADDITIONALLY PROVIDED THAT, IN] the 19 case of latent defects pertinent to and causing compensable disability, the injured 20 employee has full right to claim as shall be determined by the office of administrative 21 hearings [BOARD], time limitations notwithstanding. 22 * Sec. 41. AS 23.30.107(b) is amended to read: 23 (b) Medical or rehabilitation records, and the employee's name, address, social 24 security number, electronic mail address, and telephone number contained on any 25 record, in an employee's file maintained by the division or held by the board, the 26 office of administrative hearings, or the commission are not public records subject to 27 public inspection and copying under AS 40.25.100 - 40.25.295. This subsection does 28 not prohibit 29 (1) the reemployment benefits administrator, the division, the board, 30 the office of administrative hearings, the commission, or the department from 31 releasing medical or rehabilitation records in an employee's file, without the
01 employee's consent, to a [PHYSICIAN PROVIDING MEDICAL SERVICES 02 UNDER AS 23.30.095(k) OR 23.30.110(g), A] party to a claim filed by the employee, 03 or a governmental agency; or 04 (2) the quoting or discussing of medical or rehabilitation records 05 contained in an employee's file during a hearing on a claim for compensation [OR IN 06 A DECISION OR ORDER OF THE BOARD OR COMMISSION]. 07 * Sec. 42. AS 23.30.108 is amended to read: 08 Sec. 23.30.108. Prehearings on discovery matters; objections to requests 09 for release of information; sanctions for noncompliance. (a) If an employee objects 10 to a request for written authority under AS 23.30.107, the employee must file a 11 petition with the office of administrative hearings [BOARD] seeking a protective 12 order within 14 days after service of the request. If the employee fails to file a petition 13 and fails to deliver the written authority as required by AS 23.30.107 within 14 days 14 after service of the request, the employee's rights to benefits under this chapter are 15 suspended until the written authority is delivered. 16 (b) If a petition seeking a protective order is filed, the board shall notify the 17 office of administrative hearings, and the office of administrative hearings shall 18 set a prehearing within 21 days after the filing date of the petition. At a prehearing 19 conducted by the office of administrative hearings, the office of administrative 20 hearings [THE BOARD'S DESIGNEE, THE BOARD'S DESIGNEE] has the 21 authority to resolve disputes concerning the written authority. If the office of 22 administrative hearings [BOARD OR THE BOARD'S DESIGNEE] orders delivery 23 of the written authority and if the employee refuses to deliver it within 10 days after 24 being ordered to do so, the employee's rights to benefits under this chapter are 25 suspended until the written authority is delivered. During any period of suspension 26 under this subsection, the employee's benefits under this chapter are forfeited unless 27 the board, or the court determining an action brought for the recovery of damages 28 under this chapter, determines that good cause existed for the refusal to provide the 29 written authority. 30 (c) At a prehearing on discovery matters conducted by the office of 31 administrative hearings, the office of administrative hearings [BOARD'S
01 DESIGNEE, THE BOARD'S DESIGNEE] shall direct parties to sign releases or 02 produce documents, or both, if the parties present releases or documents that are likely 03 to lead to admissible evidence relative to an employee's injury. If a party refuses to 04 comply with an order by the office of administrative hearings [BOARD'S 05 DESIGNEE OR THE BOARD] concerning discovery matters, the office of 06 administrative hearings [BOARD] may impose appropriate sanctions in addition to 07 any forfeiture of benefits, including dismissing the party's claim, petition, or defense. 08 [IF A DISCOVERY DISPUTE COMES BEFORE THE BOARD FOR REVIEW OF 09 A DETERMINATION BY THE BOARD'S DESIGNEE, THE BOARD MAY NOT 10 CONSIDER ANY EVIDENCE OR ARGUMENT THAT WAS NOT PRESENTED 11 TO THE BOARD'S DESIGNEE, BUT SHALL DETERMINE THE ISSUE SOLELY 12 ON THE BASIS OF THE WRITTEN RECORD.] The decision by the office of 13 administrative hearings [BOARD] on a discovery dispute shall be made within 30 14 days. [THE BOARD SHALL UPHOLD THE DESIGNEE'S DECISION EXCEPT 15 WHEN THE BOARD'S DESIGNEE'S DETERMINATION IS AN ABUSE OF 16 DISCRETION.] 17 (d) If the employee files a petition seeking a protective order to recover 18 medical and rehabilitation information that has been provided but is not related to the 19 employee's injury, and the office of administrative hearings [BOARD OR THE 20 BOARD'S DESIGNEE] grants the protective order, the office of administrative 21 hearings [BOARD OR THE BOARD'S DESIGNEE GRANTING THE 22 PROTECTIVE ORDER] shall direct [THE DIVISION, THE BOARD, THE 23 COMMISSION, AND] the parties to return to the employee, as soon as practicable 24 following the issuance of the protective order, all medical and rehabilitation 25 information, including copies, in their possession that is unrelated to the employee's 26 injury under the protective order. 27 (e) If the office of administrative hearings [BOARD OR THE BOARD'S 28 DESIGNEE] limits the medical or rehabilitation information that may be used by the 29 parties to a claim, either by an order on the record or by issuing a written order, the 30 division, [THE BOARD,] the commission, and a party to the claim may request and an 31 employee shall provide or authorize the production of medical or rehabilitation
01 information only to the extent of the limitations of the order. If information has been 02 produced that is outside of the limits designated in the order, the office of 03 administrative hearings [BOARD OR THE BOARD'S DESIGNEE] shall direct the 04 party in possession of the information to return the information to the employee as 05 soon as practicable following the issuance of the order. 06 * Sec. 43. AS 23.30.110(a) is amended to read: 07 (a) Subject to the provisions of AS 23.30.105, a claim for benefits or a 08 petition for other relief shall [COMPENSATION MAY] be filed with the office of 09 administrative hearings [BOARD] in accordance with [ITS] regulations adopted by 10 the board at any time after the first seven days of disability following an injury, or at 11 any time after death. The parties shall make requests with the office of 12 administrative hearings on all matters, except those under AS 23.30.012 and 13 23.30.247 [, AND THE BOARD MAY HEAR AND DETERMINE ALL 14 QUESTIONS IN RESPECT TO THE CLAIM]. 15 * Sec. 44. AS 23.30.110(b) is amended to read: 16 (b) Within 10 days after a claim is filed, the office of administrative hearings 17 [BOARD], in accordance with its regulations, shall notify the employer and any other 18 person, other than the claimant, whom the office of administrative hearings 19 [BOARD] considers an interested party that a claim has been filed. The notice may be 20 served personally upon the employer or other person, or sent by registered or 21 electronic mail. 22 * Sec. 45. AS 23.30.110(c) is amended to read: 23 (c) Before a hearing is scheduled, the party seeking a hearing shall file a 24 request for a hearing together with an affidavit stating that the party has completed 25 necessary discovery, obtained necessary evidence, and is prepared for the hearing. An 26 opposing party shall have 10 days after the hearing request is filed to file a response. If 27 a party opposes the hearing request, the office of administrative hearings [BOARD 28 OR A BOARD DESIGNEE] shall, within 30 days of the filing of the opposition, 29 conduct a prehearing [PRE-HEARING] conference and set a hearing date consistent 30 with affording both parties an opportunity to conduct discovery and adequate 31 time to prepare for the hearing and to schedule witnesses. If opposition is not filed,
01 a hearing shall be scheduled not [NO] later than 60 days after the receipt of the 02 hearing request. The office of administrative hearings [BOARD] shall give each 03 party at least 10 days' notice of the hearing, either personally or by certified mail. 04 After a hearing has been scheduled, the parties may not stipulate to change the hearing 05 date or to cancel, postpone, or continue the hearing, except for good cause as 06 determined by the office of administrative hearings [BOARD]. After completion of 07 the hearing, the office of administrative hearings [BOARD] shall close the hearing 08 record. If a settlement agreement is reached by the parties less than 14 days before the 09 hearing, the parties shall appear at the time of the scheduled hearing before the office 10 of administrative hearings to state the terms of the settlement agreement. Within 30 11 days after the hearing record closes, the office of administrative hearings [BOARD] 12 shall file its decision. If the employer controverts a claim on a board-prescribed 13 controversion notice and the employee does not request a hearing within two years 14 following the filing of the controversion notice, the claim is denied. 15 * Sec. 46. AS 23.30.110(d) is amended to read: 16 (d) At the hearing the claimant and the employer may each present evidence in 17 respect to the claim or petition and may be represented by any person authorized by 18 regulation of the board [IN WRITING] for that purpose. 19 * Sec. 47. AS 23.30.110(e) is amended to read: 20 (e) The order rejecting the claim or making the award, referred to in this 21 chapter as a compensation order, shall be filed in the office of the board, or office of 22 administrative hearings consistent with this chapter, and a copy of it shall be sent 23 [BY REGISTERED MAIL] to the claimant and [TO THE] employer electronically or 24 by registered mail to [AT] the last known address of each. 25 * Sec. 48. AS 23.30.110(h) is amended to read: 26 (h) The filing of a hearing request under (c) of this section suspends the 27 running of the two-year time period specified in (c) of this section. However, if the 28 employee subsequently requests a continuance of the hearing and the request is 29 approved by the office of administrative hearings [BOARD], the granting of the 30 continuance renders the request for hearing inoperative, and the two-year time period 31 specified in (c) of this section continues to run again from the date of the [BOARD'S]
01 notice by the office of administrative hearings to the employee of the [BOARD'S] 02 granting by the office of administrative hearings of the continuance and of its effect. 03 If the employee fails to again request a hearing before the conclusion of the two-year 04 time period in (c) of this section, the claim is denied. 05 * Sec. 49. AS 23.30.115 is amended to read: 06 Sec. 23.30.115. Attendance and fees of witnesses. (a) A person is not 07 required to attend as a witness in a proceeding before the office of administrative 08 hearings or the board at a place more than 100 miles from the person's place of 09 residence, unless the person's lawful mileage and fee for one day's attendance is first 10 paid or tendered to the person; but the testimony of a witness may be taken by 11 deposition or interrogatories according to the Rules of Civil Procedure. 12 (b) A witness summoned in a proceeding before the office of administrative 13 hearings or the board or whose deposition is taken shall receive the same fees and 14 mileage as a witness in the superior court. 15 * Sec. 50. AS 23.30.120(a) is amended to read: 16 (a) In a proceeding for the enforcement of a claim for compensation under this 17 chapter, once the employee has established a preliminary link between 18 employment or employment injury and the resulting condition, disability, or need 19 for medical treatment through objective relevant medical evidence, it is presumed 20 [, IN THE ABSENCE OF SUBSTANTIAL EVIDENCE TO THE CONTRARY,] that 21 (1) the claim comes within the provisions of this chapter; 22 (2) sufficient notice of the claim has been given; 23 (3) the injury was not proximately caused by the intoxication of the 24 injured employee or proximately caused by the employee being under the influence of 25 drugs unless the drugs were taken as prescribed by the employee's physician; 26 (4) the injury was not occasioned by the wilful intention of the injured 27 employee to injure or kill self or another. 28 * Sec. 51. AS 23.30.120(b) is amended to read: 29 (b) If delay in giving notice is excused by the office of administrative 30 hearings [BOARD] under AS 23.30.100(d)(2), the burden of proof of the validity of 31 the claim shifts to the employee notwithstanding the provisions of (a) of this section.
01 * Sec. 52. AS 23.30.120 is amended by adding new subsections to read: 02 (d) An employee may not establish a preliminary link under (a) of this section 03 solely by disproving other possible causes or explanations for how the injury, disease, 04 resulting condition, disability, or need for medical treatment occurred. 05 (e) After the employee establishes a preliminary link, the presumption of 06 compensability under (a) of this section may be rebutted by presentation of objective 07 relevant medical evidence that it is more likely than not that the compensable injury is 08 not, or is no longer, the major contributing cause of the condition, disability, or need 09 for medical treatment, even if there is no clear alternative explanation or known cause 10 of the compensable injury. 11 (f) Once the presumption has been rebutted under (e) of this section, the 12 employee must prove the claim by clear and convincing objective relevant medical 13 evidence. 14 * Sec. 53. AS 23.30.122 is amended to read: 15 Sec. 23.30.122. Credibility of witnesses. Only the office of administrative 16 hearings and the [THE] board have the [HAS THE SOLE] power to determine the 17 credibility of a witness. A finding by the office of administrative hearings or the 18 board concerning the weight to be accorded a witness's testimony, including medical 19 testimony and reports, is conclusive even if the evidence is conflicting or susceptible 20 to contrary conclusions. The findings of the office of administrative hearings and 21 the board are subject to the same standard of review as a jury's finding in a civil 22 action. 23 * Sec. 54. AS 23.30.122 is amended by adding new subsections to read: 24 (b) The office of administrative hearings may not afford a physician's opinion 25 more weight merely because the physician is the employee's treating physician. The 26 office of administrative hearings may not give less weight to an employer's medical 27 evaluator merely because that physician has not seen the employee as frequently as the 28 treating physician. The probative value of an employer's medical evaluator opinion on 29 causation, the extent of disability, impairment, ability to work, or need for medical 30 treatment is evidence to be considered on a footing equal to all other proof in the case. 31 The office of administrative hearings shall consider the following factors in affording
01 weight to a medical expert's opinion: 02 (1) whether the medical expert's opinion is based on objective medical 03 evidence that meets the criteria of Rule 702, Federal Rules of Evidence, and all United 04 States Supreme Court case law applicable to that rule; 05 (2) whether the medical opinion is consistent with the medical record 06 as a whole; 07 (3) how independent the medical expert's opinion is from inappropriate 08 influences from the employee or employer; 09 (4) whether the medical expert is board certified in the medical expert's 10 specialty and whether the opinion of the medical expert is within the medical expert's 11 specialty; and 12 (5) the degree to which the medical expert presents an explanation and 13 relevant evidence to support an opinion, particularly with review of prior medical 14 reports, physical examinations, radiology, or other diagnostic or laboratory tests. 15 (c) In deciding medical issues on causation, degree of impairment, ability to 16 work, physical capacities, or past and future medical treatment, the office of 17 administrative hearings and the board may not rely on lay testimony. Lay testimony 18 may only be relied on to decide factual disputes that do not involve causation, degree 19 of impairment, ability to work, physical capacities, or past and future medical 20 treatment. 21 * Sec. 55. AS 23.30.125(a) is amended to read: 22 (a) A compensation order becomes effective when filed with the office of 23 administrative hearings [THE BOARD] as provided in AS 23.30.110, and, unless 24 proceedings to reconsider, suspend, or set aside the order are instituted as provided in 25 this chapter, the order becomes final on the 31st day after it is filed. 26 * Sec. 56. AS 23.30.125(b) is amended to read: 27 (b) Notwithstanding other provisions of law, a decision or order of the office 28 of administrative hearings or the board is subject to review by the commission as 29 provided in this chapter. 30 * Sec. 57. AS 23.30.125(c) is amended to read: 31 (c) If a compensation order is not in accordance with law or fact, the order
01 may be suspended or set aside, in whole or in part, through proceedings in the 02 commission brought by a party in interest against all other parties to the proceedings 03 before the office of administrative hearings [BOARD]. The payment of the amounts 04 required by an award may not be stayed pending a final decision in the proceeding 05 unless, upon application for a stay, the commission, on hearing, after not less than 06 three days' notice to the parties in interest, allows the stay of payment, in whole or in 07 part, where the party filing the application would otherwise suffer irreparable damage. 08 Continuing future periodic compensation payments may not be stayed without a 09 showing by the appellant of irreparable damage and the existence of the probability of 10 the merits of the appeal being decided adversely to the recipient of the compensation 11 payments. The order of the commission allowing a stay must contain a specific 12 finding, based on [UPON] evidence submitted to the commission and identified by 13 reference to the evidence, that irreparable damage would result to the party applying 14 for a stay and specifying the nature of the damage. 15 * Sec. 58. AS 23.30.127(a) is amended to read: 16 (a) A party in interest may appeal a compensation order issued by the board or 17 the office of administrative hearings to the commission within 30 days after the 18 compensation order is filed [WITH THE OFFICE OF THE BOARD] under 19 AS 23.30.110. The director may intervene in an appeal. If a party in interest is not 20 represented by counsel and the compensation order concerns an unsettled question of 21 law, the director may file an appeal to obtain a ruling on the question by the 22 commission. 23 * Sec. 59. AS 23.30.127(e) is amended to read: 24 (e) If a request for reconsideration of a [BOARD] decision of the board or 25 the office of administrative hearings was timely filed with the office of 26 administrative hearings or the board, the notice of appeal must be filed within 30 27 days after the reconsideration decision is mailed to the parties or the date the request 28 for reconsideration is considered denied in the absence of any action on the request, 29 whichever is earlier. 30 * Sec. 60. AS 23.30.128(a) is amended to read: 31 (a) An appeal from a decision of the board or the office of administrative
01 hearings under this chapter, and other proceedings under this section, shall be heard 02 and decided by a three-member panel of the commission. An appeal panel of the 03 commission must include the chair of the commission. The chair of the commission 04 shall assign two members to each appeal, including one commission member 05 classified as representing employees and one commission member classified as 06 representing employers. Acts, decisions, and orders of the commission panel in the 07 appeal or related proceeding shall be considered the acts, decisions, and orders of the 08 full commission. The matter on appeal shall be decided on the record made before the 09 board or the office of administrative hearings, a transcript or recording of the 10 proceedings before the board or the office of administrative hearings, and oral 11 argument and written briefs allowed by the commission. Except as provided in (c) of 12 this section, new or additional evidence may not be received with respect to the 13 appeal. 14 * Sec. 61. AS 23.30.128(b) is amended to read: 15 (b) The commission may review discretionary actions, findings of fact, and 16 conclusions of law by the board or the office of administrative hearings in hearing, 17 determining, or otherwise acting on a compensation claim or petition. The 18 [BOARD'S] findings of the board or the office of administrative hearings 19 regarding the credibility of testimony of a witness before the board or the office of 20 administrative hearings are binding on the commission. The [BOARD'S] findings of 21 fact of the board or the office of administrative hearings shall be upheld by the 22 commission if supported by substantial evidence in light of the whole record. In 23 reviewing questions of law and procedure, the commission shall exercise its 24 independent judgment. 25 * Sec. 62. AS 23.30.129(a) is amended to read: 26 (a) Notwithstanding the provisions of AS 44.62.560, orders of the office of 27 administrative hearings and the commission issued under this chapter may not be 28 appealed to the superior court. Consistent with AS 22.05.010(b), final decisions of the 29 commission may be appealed to the supreme court, and other orders may be reviewed 30 by the supreme court as provided by the Alaska Rules of Appellate Procedure. 31 * Sec. 63. AS 23.30.130 is amended to read:
01 Sec. 23.30.130. Modification of awards. (a) Upon [ITS OWN INITIATIVE, 02 OR UPON] the application of any party in interest on the ground of a change in 03 conditions, including, for the purposes of AS 23.30.175, a change in residence, or 04 because of a mistake in its determination of a fact, the board or the office of 05 administrative hearings may, before one year after the date of the last payment of 06 compensation benefits under AS 23.30.180, 23.30.185, 23.30.190, 23.30.200, or 07 23.30.215, whether or not a compensation order has been issued, or before one year 08 after the rejection of a claim, review a compensation case under the procedure 09 prescribed with [IN] respect to [OF] claims in AS 23.30.110. Under AS 23.30.110, the 10 board or the office of administrative hearings may issue a new compensation order 11 that [WHICH] terminates, continues, reinstates, increases, or decreases the 12 compensation, or award compensation. 13 (b) A new order does not affect compensation previously paid, except that an 14 award increasing the compensation rate may be made effective from the date of the 15 injury, and if part of the compensation due or to become due is unpaid, an award 16 decreasing the compensation rate may be made effective from the date of the injury, 17 and payment made earlier in excess of the decreased rate shall be deducted from the 18 unpaid compensation, in the manner the board or the office of administrative 19 hearings determines. 20 * Sec. 64. AS 23.30.135 is amended to read: 21 Sec. 23.30.135. Procedure before the board and the office of 22 administrative hearings. (a) In making an investigation or inquiry or conducting a 23 hearing, the board or the office of administrative hearings is not bound by common 24 law or statutory rules of evidence or by technical or formal rules of procedure, except 25 as provided by this chapter. The board or the office of administrative hearings may 26 make its investigation or inquiry or conduct its hearing in the manner by which it may 27 best ascertain the rights of the parties. Declarations of a deceased employee 28 concerning the injury in respect to which the investigation or inquiry is being made or 29 the hearing conducted shall be received in evidence and are, if corroborated by other 30 evidence, sufficient to establish the injury. 31 (b) All testimony given during a hearing before the board and the office of
01 administrative hearings shall be recorded, but need not be transcribed unless further 02 review is initiated. Hearings before the board and the office of administrative 03 hearings shall be open to the public. 04 * Sec. 65. AS 23.30.145 is repealed and reenacted to read: 05 Sec. 23.30.145. Attorney fees. (a) Fees for legal services rendered with respect 06 to a claim are not valid unless approved by the office of administrative hearings. 07 Except as provided under (b) of this section, attorney fees may not exceed the 08 following percentage of the contested amount of compensation benefits secured as a 09 result of a claim filed by an attorney: 10 (1) 25 percent of the settlement amount between the parties; 11 (2) 30 percent of the amount awarded by the office of administrative 12 hearings after a hearing or upon appeal to the commission; 13 (3) 35 percent of the amount awarded after a successful appeal to the 14 Alaska Supreme Court. 15 (b) If a written offer to settle an issue pending before the office of 16 administrative hearings is made at least 30 days before a hearing on the claim, for 17 purposes of calculating the amount of attorney fees to be paid under (a) of this section, 18 only the amount of benefits awarded to the employee above the amount specified in 19 the offer to settle may be considered. If multiple issues are pending before the office 20 of administrative hearings, the offer to settle must address each issue and clearly state 21 whether or not the offer on each issue is severable. Any written offer to settle must be 22 kept confidential and not disclosed to the office of administrative hearings until after 23 the final decision on the merits of the case has been decided. After the final decision 24 on the merits of the case has been issued, the parties shall file the offer to settle with 25 the office of administrative hearings so that the office of administrative hearings can 26 award appropriate attorney fees and costs. 27 (c) Attorney fees and costs may be paid in a lump sum on the present value of 28 the settlement or adjudicated amount. 29 (d) In this section, "benefits secured" does not include medical benefits 30 awarded three or more years after the date of injury. 31 * Sec. 66. AS 23.30.155(b) is amended to read:
01 (b) The first installment of compensation becomes due on the 14th day after 02 the employer has knowledge of the injury or death. On this date all compensation then 03 due shall be paid. Subsequent compensation shall be paid in installments, every 14 04 days, except where the office of administrative hearings [BOARD] determines that 05 payment in installments should be made monthly or at some other period. 06 * Sec. 67. AS 23.30.155(j) is amended to read: 07 (j) If an employer has made advance payments or overpayments of 08 compensation, the employer is entitled to be reimbursed by withholding up to 20 09 percent out of each unpaid installment or installments of compensation due. More than 10 20 percent of unpaid installments of compensation due may be withheld from an 11 employee 12 (1) when the only benefit remaining is a lump-sum payment of 13 permanent partial impairment benefits; or 14 (2) upon approval of the office of administrative hearings [ONLY 15 ON APPROVAL OF THE BOARD]. 16 * Sec. 68. AS 23.30.155(m) is amended to read: 17 (m) On or before March 1 of each year, the insurer or adjuster shall file a 18 verified annual report on a form prescribed by the director stating the total amount of 19 all compensation by type, the number of claims received and the percentage 20 controverted, medical and related benefits, vocational rehabilitation expenses, legal 21 fees, including a separate total of fees paid to attorneys and fees paid for the other 22 costs of litigation, and penalties paid on all claims during the preceding calendar year. 23 If the annual report is timely and complete when received by the division and provides 24 accurate information about each category of payments, the director shall review the 25 timeliness of the insurer's or adjuster's reports filed during the preceding year under (c) 26 of this section. If, during the preceding year, the insurer or adjuster filed at least 99 27 percent of the reports on time, the penalties assessed under (c) of this section shall be 28 waived. If, during the preceding year, the insurer or adjuster filed at least 97 percent of 29 the reports on time, 75 percent of the penalties assessed under (c) of this section shall 30 be waived. If, during the preceding year, the insurer or adjuster filed 95 percent of the 31 reports on time, 50 percent of the penalties assessed under (c) of this section shall be
01 waived. If, during the preceding year, the insurer's or adjuster's reports have not been 02 filed on time at least 95 percent of the time, none of the penalties assessed under (c) of 03 this section shall be waived. The penalties that are not waived are due and payable 04 when the insurer or adjuster receives notification from the director regarding the 05 timeliness of the reports. If the annual report is not filed by March 1 of each year, the 06 insurer or adjuster shall pay a civil penalty of $100 for the first day the annual report is 07 late and $10 for each additional day the report is late. [IF THE ANNUAL REPORT IS 08 INCOMPLETE WHEN FILED, THE INSURER OR ADJUSTER SHALL PAY A 09 CIVIL PENALTY OF $1,000.] 10 * Sec. 69. AS 23.30.155(o) is amended to read: 11 (o) The director shall promptly notify the division of insurance if the office of 12 administrative hearings [BOARD] determines that the employer's insurer has 13 frivolously or unfairly controverted compensation due under this chapter. After 14 receiving notice from the director, the division of insurance shall determine if the 15 insurer has committed an unfair claim settlement practice under AS 21.36.125. 16 * Sec. 70. AS 23.30.175(a) is amended to read: 17 (a) The weekly rate of compensation for disability or death may not exceed 18 the maximum compensation rate, may not be less than 22 percent of the maximum 19 compensation rate, and initially may not be less than $110; however, if the office of 20 administrative hearings [BOARD] determines that the employee's spendable weekly 21 wages are less than $110 a week as computed under AS 23.30.220, or less than 22 22 percent of the maximum compensation rate a week in the case of an employee who 23 has furnished documentary proof of the employee's wages, it shall issue an order 24 adjusting the weekly rate of compensation to a rate equal to the employee's spendable 25 weekly wages. If the employer can verify that the employee's spendable weekly wages 26 are less than 22 percent of the maximum compensation rate, the employer may adjust 27 the weekly rate of compensation to a rate equal to the employee's spendable weekly 28 wages without an order of the office of administrative hearings [BOARD]. If the 29 employee's spendable weekly wages are greater than 22 percent of the maximum 30 compensation rate, but 80 percent of the employee's spendable weekly wages is less 31 than 22 percent of the maximum compensation rate, the employee's weekly rate of
01 compensation shall be 22 percent of the maximum compensation rate. Prior payments 02 made in excess of the adjusted rate shall be deducted from the unpaid compensation in 03 the manner the office of administrative hearings [BOARD] determines. In any case, 04 the employer shall pay timely compensation. In this subsection, "maximum 05 compensation rate" means 120 percent of the average weekly wage, calculated under 06 (d) of this section, applicable on the date of injury of the employee. 07 * Sec. 71. AS 23.30.180 is amended to read: 08 Sec. 23.30.180. Permanent total disability. (a) In case of total disability 09 adjudged to be permanent, 80 percent of the injured employee's spendable weekly 10 wages shall be paid to the employee during the continuance of the total disability until 11 the employee begins receiving social security, pension, or other retirement 12 benefits. If a permanent partial disability award has been made before a permanent 13 total disability determination, permanent total disability benefits must be reduced by 14 the amount of the permanent partial disability award, adjusted for inflation, in a 15 manner determined by the board. Loss of both hands, or both arms, or both feet, or 16 both legs, or both eyes, or of any two of them, in the absence of conclusive proof to 17 the contrary, constitutes permanent total disability. In all other cases permanent total 18 disability is determined in accordance with the facts. In making this determination the 19 market for the employee's services shall be 20 (1) area of residence; 21 (2) area of last employment; 22 (3) the state of residence; and 23 (4) the State of Alaska. 24 (b) Failure to achieve remunerative employability [AS DEFINED IN 25 AS 23.30.041(r)] does not, by itself, constitute permanent total disability. 26 * Sec. 72. AS 23.30.185 is amended to read: 27 Sec. 23.30.185. Compensation for temporary total disability. In case of 28 disability total in character but temporary in quality, 80 percent of the injured 29 employee's spendable weekly wages shall be paid to the employee during the 30 continuance of the disability. Temporary total disability benefits may not be paid for 31 any period of disability occurring after the date of medical stability and for more
01 than an aggregate total of 104 weeks for each claim. 02 * Sec. 73. AS 23.30.190 is amended by adding a new subsection to read: 03 (e) An employee who returns to work for the same employer in a position that 04 pays a wage equal to or greater than that paid at the time of injury is not eligible to 05 receive permanent partial impairment benefits under this section. 06 * Sec. 74. AS 23.30.200(b) is amended to read: 07 (b) The wage-earning capacity of an injured employee is determined by the 08 actual spendable weekly wage of the employee if the actual spendable weekly wage 09 fairly and reasonably represents the wage-earning capacity of the employee. The 10 office of administrative hearings [BOARD] may, in the interest of justice, fix the 11 wage-earning capacity that is reasonable, having due regard to the nature of the injury, 12 the degree of physical impairment, the usual employment, and other factors or 13 circumstances in the case that may affect the capacity of the employee to earn wages 14 in a disabled condition, including the effect of disability as it may naturally extend into 15 the future. 16 * Sec. 75. AS 23.30.215(d) is amended to read: 17 (d) Compensation under this chapter to aliens not residents, or about to 18 become nonresidents, of the United States or Canada is the same in amount as 19 provided for residents, except that dependents in a foreign country are limited to 20 widow or widower and child or children, or if there is no widow or widower and child 21 or children, to surviving father or mother whom the employee has supported, either 22 wholly or in part, for a period of one year before the date of injury. The office of 23 administrative hearings [BOARD], at its option, or upon the application of the 24 insurance carrier, may commute all future installments of compensation to be paid to 25 an alien dependent who is not a resident of the United States or Canada by paying or 26 causing to be paid to the alien dependent one-half of the commuted amount of the 27 future installments of compensation as determined by the office of administrative 28 hearings [BOARD]. 29 * Sec. 76. AS 23.30.220(a) is amended to read: 30 (a) Computation of compensation under this chapter shall be on the basis of an 31 employee's spendable weekly wage at the time of injury. An employee's spendable
01 weekly wage is the employee's gross weekly earnings minus payroll tax deductions. 02 An employee's gross weekly earnings shall be calculated as follows: 03 (1) if at the time of injury the employee's earnings are calculated by the 04 week, the weekly amount is the employee's gross weekly earnings; 05 (2) if at the time of injury the employee's earnings are calculated by the 06 month, the employee's gross weekly earnings are the monthly earnings multiplied by 07 12 and divided by 52; 08 (3) if at the time of injury the employee's earnings are calculated by the 09 year, the employee's gross weekly earnings are the yearly earnings divided by 52; 10 (4) if at the time of injury the employee's earnings are calculated by the 11 day, by the hour, or by the output of the employee, then the employee's gross weekly 12 earnings are 1/50 of the total wages that the employee earned from all occupations 13 during either of the two calendar years immediately preceding the injury, whichever is 14 most favorable to the employee; 15 (5) if at the time of injury the employee's earnings have not been fixed 16 or cannot be ascertained, the employee's earnings for the purpose of calculating 17 compensation are the usual wage for similar services when the services are rendered 18 by paid employees; 19 (6) if at the time of injury the employee's earnings are calculated by the 20 week under (1) of this subsection or by the month under (2) of this subsection and the 21 employment is exclusively seasonal or temporary, then the gross weekly earnings are 22 1/50 of the total wages that the employee has earned from all occupations during the 23 12 calendar months immediately preceding the injury; 24 (7) when the employee is working under concurrent contracts with two 25 or more employers, the employee's earnings from all employers is considered as if 26 earned from the employer liable for compensation; 27 (8) if an employee when injured is a minor, an apprentice, or a trainee 28 in a formalized training program, as determined by the office of administrative 29 hearings [BOARD], whose wages under normal conditions would increase during the 30 period of disability, the projected increase may be considered by the office of 31 administrative hearings [BOARD] in computing the gross weekly earnings of the
01 employee; if the minor, apprentice, or trainee would have likely continued that 02 training program, then the compensation shall be the average weekly wage at the time 03 of injury rather than that based on the individual's prior earnings; 04 (9) if the employee is injured while performing duties as a volunteer 05 ambulance attendant, volunteer police officer, or volunteer firefighter, then, 06 notwithstanding (1) - (6) of this subsection, the gross weekly earnings for calculating 07 compensation shall be the minimum gross weekly earnings paid a full-time ambulance 08 attendant, police officer, or firefighter employed in the political subdivision where the 09 injury occurred, or, if the political subdivision has no full-time ambulance attendants, 10 police officers, or firefighters, at a reasonable figure previously set by the political 11 subdivision to make this determination, but in no case may the gross weekly earnings 12 for calculating compensation be less than the minimum wage computed on the basis of 13 40 hours work a [PER] week; 14 (10) if an employee is entitled to compensation under AS 23.30.180 15 and the office of administrative hearings [BOARD] determines that calculation of 16 the employee's gross weekly earnings under (1) - (7) of this subsection does not fairly 17 reflect the employee's earnings during the period of disability, the office of 18 administrative hearings [BOARD] shall determine gross weekly earnings by 19 considering the nature of the employee's work, work history, and resulting disability, 20 but compensation calculated under this paragraph may not exceed the employee's 21 gross weekly earnings at the time of injury. 22 * Sec. 77. AS 23.30.250(b) is amended to read: 23 (b) If the office of administrative hearings [BOARD], after a hearing, finds 24 that a person has obtained compensation, medical treatment, or another benefit 25 provided under this chapter, or that a provider has received a payment, by knowingly 26 making a false or misleading statement or representation for the purpose of obtaining 27 that benefit, the office of administrative hearings [BOARD] shall order that person 28 to make full reimbursement of the cost of all benefits obtained. Upon entry of an order 29 authorized under this subsection, the office of administrative hearings [BOARD] 30 shall also order that person to pay all reasonable costs and attorney fees incurred by 31 the employer and the employer's carrier in obtaining an order under this section and in
01 defending any claim made for benefits under this chapter. If a person fails to comply 02 with an order of the office of administrative hearings [BOARD] requiring 03 reimbursement of compensation and payment of costs and attorney fees, the employer 04 may declare the person in default and proceed to collect any sum due as provided 05 under AS 23.30.170(b) and (c). 06 * Sec. 78. AS 23.30.260(a) is amended to read: 07 (a) A person is guilty of a misdemeanor and, upon conviction, is punishable 08 for each offense by a fine of not more than $1,000 or by imprisonment for not more 09 than one year, or by both, if the person 10 (1) receives a fee, other consideration, or a gratuity on account of any 11 services rendered for representation or advice with respect to a claim, unless the 12 consideration or gratuity is approved by the office of administrative hearings 13 [BOARD] or the court; or 14 (2) makes it a business to solicit employment for a lawyer or for the 15 person making the solicitation with respect to a claim or award for compensation. 16 * Sec. 79. AS 23.30 is amended by adding new sections to read: 17 Sec. 23.30.285. Group practice. (a) Notwithstanding AS 23.30.097, to qualify 18 for reimbursement from an employer, a group practice that provides medical treatment 19 to an employee under this chapter must comply with this section. 20 (b) A group practice that provides medical treatment to an employee under 21 this chapter must be a single business entity that has at least two physicians who are 22 members of the group, whether employees or owners. Each physician who is a 23 member of the group practice must furnish substantially the full range of patient care 24 services that the physician routinely furnishes, including medical care, consultation, 25 diagnosis, and treatment, through the joint use of shared office space, facilities, 26 equipment, and personnel. 27 (c) If an employee seeks medical treatment under this chapter from a group 28 practice, at least 75 percent of the total patient care services of the group practice must 29 be furnished by physicians who are members of the group practice and be billed under 30 a billing number assigned to the group practice, and the amounts received must be 31 treated as receipts of the group practice. The board shall prescribe by regulation a
01 method for measuring whether a group practice meets the requirements of this 02 subsection. 03 (d) The overhead expenses of, and income from, the group practice must be 04 distributed according to methods that are determined before the receipt of payment for 05 the services giving rise to the overhead expense or producing the income. Nothing in 06 this section prevents a group practice from adjusting its compensation methodology 07 prospectively. 08 (e) The group practice must be a unified business that has 09 (1) centralized decision-making by a body representative of the group 10 practice that maintains control over the assets and liabilities, including budgets, 11 compensation, and salaries, of the group practice; and 12 (2) consolidated billing, accounting, and financial reporting. 13 (f) A physician who is a member of the group practice may not directly or 14 indirectly receive compensation based on the volume or value of referrals, except as 15 provided in (g) of this section. 16 (g) A physician in the group practice may be paid a share of overall profits of 17 the group practice, as permitted by regulations adopted by the board, if the share is not 18 determined in any manner that is directly related to the volume or value of referrals of 19 medical treatment provided under this chapter by the physician. A physician in the 20 group practice may be paid a productivity bonus based on services personally 21 performed, services incident to the personally performed services, or both, if the bonus 22 is not determined in any manner that is directly related to the volume or value of 23 referrals of medical treatment provided under this chapter. 24 (h) In this section, "group practice" means a single legal entity operating 25 primarily for the purpose of being a physician group practice in any organizational 26 form recognized in this state, including a partnership, professional corporation, limited 27 liability company, foundation, nonprofit corporation, faculty practice plan, or similar 28 association. 29 Sec. 23.30.290. Certain referrals prohibited. (a) A physician who has a 30 direct or indirect financial relationship, as defined by the board by regulation, with 31 another physician, a group practice under AS 23.30.285, or other entity that furnishes
01 medical services to employees covered by this chapter, or who has an immediate 02 family member who has a direct or indirect financial relationship with another 03 physician, a group practice under AS 23.30.285, or other entity that furnishes medical 04 services to employees covered by this chapter, may not make a referral to that 05 physician, group practice, or other entity for the furnishing of medical services to 06 employees covered by this chapter. A physician's prohibited financial relationship 07 with an entity that furnishes medical services is not imputed to the physician's group 08 practice under AS 23.30.285 or members or staff of the group practice, but a referral 09 made by a physician's group practice or members or staff of the group practice may be 10 imputed to the physician, if the physician directs the group practice or members or 11 staff of the group practice to make the referral or if the physician controls referrals 12 made by the group practice or members or staff of the group practice. 13 (b) An entity that furnishes medical services under a referral that is prohibited 14 by (a) of this section may not present or cause to be presented a claim or bill under this 15 chapter to an employer, insurer, third-party payer, or other person for the medical 16 services performed under the prohibited referral. 17 (c) Except as provided in (e) of this section, no payment may be made for 18 medical services furnished under a prohibited referral. 19 (d) An entity that collects payment for medical services that were performed 20 under a prohibited referral shall refund all collected amounts on a timely basis, as 21 prescribed by regulation by the board. 22 (e) Payment may be made to an entity that submits a claim for medical 23 services if the 24 (1) entity did not have actual knowledge of, and did not act in reckless 25 disregard or deliberate ignorance of, the identity of the physician who made the 26 referral of the medical services to the entity; and 27 (2) claim otherwise complies with applicable federal and state law. 28 (f) In this section, "medical services" means 29 (1) clinical laboratory services; 30 (2) physical therapy, occupational therapy, and speech language 31 pathology services;
01 (3) radiology and other imaging services; 02 (4) radiation therapy services and supplies; 03 (5) durable medical equipment and supplies; 04 (6) parenteral and enteral nutrients, equipment, and supplies; 05 (7) prosthetics, orthotics, and prosthetic devices and supplies; 06 (8) home health services; 07 (9) outpatient prescription drugs; and 08 (10) inpatient and outpatient hospital services. 09 * Sec. 80. AS 23.30.395(2) is amended to read: 10 (2) "arising out of and in the course of employment" includes 11 employer-required or supplied travel to and from a remote job site; activities 12 performed at the direction or under the control of the employer; and employer- 13 sanctioned activities at employer-provided facilities if the activities are a major 14 contributing cause of the death, disease, or resulting condition, disability, or need 15 for medical treatment; but excludes recreational league activities sponsored by the 16 employer, unless participation is required as a condition of employment, and activities 17 of a personal nature away from employer-provided facilities; 18 * Sec. 81. AS 23.30.395(3) is amended to read: 19 (3) "attending physician" means one of the following designated by the 20 employee under AS 23.30.095(a) [OR (b)]: 21 (A) a licensed medical doctor; 22 (B) a licensed doctor of osteopathy; 23 (C) a licensed dentist or dental surgeon; 24 (D) a licensed physician assistant acting under supervision of a 25 licensed medical doctor or doctor of osteopathy; 26 (E) a licensed advanced practice registered nurse; or 27 (F) a licensed chiropractor; 28 * Sec. 82. AS 23.30.395 is amended by adding a new paragraph to read: 29 (43) "office of administrative hearings" means the office of 30 administrative hearings established under AS 44.64.010. 31 * Sec. 83. AS 44.64.030(a) is amended by adding a new paragraph to read:
01 (51) AS 23.30 (Alaska Workers' Compensation Act). 02 * Sec. 84. AS 23.30.005(f), 23.30.095(b), 23.30.095(i), 23.30.095(k), 23.30.110(g), 03 23.30.121, 23.30.135(a), 23.30.155(h), 23.30.224(b), 23.30.224(e), and 23.30.224(f) are 04 repealed. 05 * Sec. 85. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 APPLICABILITY. Sections 8 - 84 of this Act apply to claims for injuries filed on or 08 after the effective dates of those sections. 09 * Sec. 86. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 TRANSITION: CLAIMS. (a) The Alaska Workers' Compensation Board shall hear 12 and decide claims filed under AS 23.30.110 before the effective date of secs. 43 - 48 of this 13 Act as that statute read on the day before the effective date of secs. 43 - 48 of this Act. 14 (b) A claim for benefits or petition for other relief under AS 23.30 that has not been 15 filed with the Alaska Workers' Compensation Board before the effective date of secs. 43 - 48 16 of this Act shall be filed with the office of administrative hearings (AS 44.64.010) after the 17 effective date of secs. 43 - 48 of this Act in accordance with AS 23.30.110, as amended by 18 secs. 43 - 48 of this Act. 19 * Sec. 87. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 TRANSITION: REGULATIONS. (a) The Department of Labor and Workforce 22 Development may adopt regulations necessary to implement the changes made by this Act. 23 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 24 effective date of the sections being implemented. 25 (b) The chief administrative law judge of the office of administrative hearings 26 (AS 44.64.010) may adopt regulations necessary to establish procedures for administrative 27 hearings required by the changes made by this Act. The regulations take effect under 28 AS 44.62 (Administrative Procedure Act), but not before the effective date of the sections 29 being implemented. 30 * Sec. 88. Section 87 of this Act takes effect immediately under AS 01.10.070(c). 31 * Sec. 89. Sections 1, 3, and 36 of this Act take effect July 17, 2017.
01 * Sec. 90. Sections 2 and 4 of this Act take effect July 1, 2021.