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30th Legislature(2017-2018)

Bill Text 30th Legislature


00 Enrolled HB 79                                                                                                          
01 Relating to workers' compensation; relating to the second injury fund; relating to service fees                         
02 and civil penalties for the workers' safety programs and the workers' compensation program;                             
03 relating to incorporation of reference materials in workers' compensation regulations;                                  
04 excluding independent contractors from workers' compensation coverage; establishing the                                 
05 circumstances under which certain nonemployee executive corporate officers and members of                               
06 limited liability companies may obtain workers' compensation coverage; establishing a                                   
07 legislative workers' compensation working group; and providing for an effective date.                                   
08                           _______________                                                                               
09    * Section 1. AS 23.05.067(a) is amended to read:                                                                     
10            (a)  Each insurer providing workers' compensation insurance and each                                         
11       employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall                            
01       pay an annual service fee to the department for the administrative expenses of the state                          
02       for workers' safety programs under AS 18.60 and the workers' compensation program                                 
03       under AS 23.30 as follows:                                                                                        
04                 (1)  for each employer,                                                                                 
05                      (A)  except as provided in (b) of this section, the service fee                                    
06            shall be paid each year to the department at the time that the annual report is                              
07            required to be filed under AS 23.30.155(m) or (n); and                                                       
08                      (B)  the service fee is 2.9 percent of all payments reported to the                                
09            division of workers' compensation in the department under AS 23.30.155(m)                                    
10            or (n), except second injury fund payments; and                                                              
11 (2)  for each insurer, the director of the division of insurance shall,                                                 
12 under (e) of this section, deposit from funds received from the insurer under                                           
13 AS 21.09.210 a service fee of 2.5 [1.82] percent of the direct premium income for                                     
14 workers' compensation insurance received by the insurer during the year ending on the                                   
15       preceding December 31, subject to all the deductions specified in AS 21.09.210(b).                                
16    * Sec. 2. AS 23.05.067(e) is amended to read:                                                                        
17 (e)  Annual service fees and civil penalties collected under this section and                                         
18 AS 23.30.155(c) and (m) shall be deposited in the workers' safety and compensation                                    
19 administration account in the state treasury. Under AS 37.05.146(c), the service fees                                   
20 and civil penalties shall be accounted for separately, and appropriations from the                                      
21 account are not made from the unrestricted general fund. The legislature may                                            
22 appropriate money from the account for expenditures by the department for necessary                                     
23 costs incurred by the department in the administration of the workers' safety programs                                  
24 contained in AS 18.60 and of the Alaska Workers' Compensation Act contained in                                          
25 AS 23.30. Nothing in this subsection creates a dedicated fund or dedicates the money                                    
26 in the account for a specific purpose. Money deposited in the account does not lapse at                                 
27       the end of a fiscal year unless otherwise provided by an appropriation.                                           
28    * Sec. 3. AS 23.30.070(a) is amended to read:                                                                        
29 (a)  Within 10 days from the date the employer has knowledge of an injury or                                            
30 death or from the date the employer has knowledge of a disease or infection, alleged                                    
31 by the employee or on behalf of the employee to have arisen out of and in the course                                    
01       of the employment, the employer shall file with [SEND TO] the division a report                                 
02       setting out                                                                                                       
03                 (1)  the name, address, and business of the employer;                                                   
04                 (2)  the name, address, and occupation of the employee;                                                 
05                 (3)  the cause and nature of the alleged injury or death;                                               
06                 (4)  the year, month, day, and hour when and the particular locality                                    
07       where the alleged injury or death occurred; and                                                                   
08                 (5)  the other information that the division may require.                                               
09    * Sec. 4. AS 23.30.070(b) is amended to read:                                                                        
10 (b)  Additional reports with respect to the injury and to the condition of the                                          
11 employee shall be filed [SENT] by the employer with [TO] the division at the times                                  
12       and in the manner that the director prescribes.                                                                   
13    * Sec. 5. AS 23.30.070(d) is amended to read:                                                                        
14 (d)  Filing [MAILING] of the report with [AND A COPY TO] the division in                                          
15 a format prescribed by the director [IN A STAMPED ENVELOPE], within the                                               
16       time prescribed in (a) or (b) of this section, is compliance with this section.                                   
17    * Sec. 6. AS 23.30.070(f) is amended to read:                                                                        
18 (f)  An employer who fails or refuses to file [SEND] a report required of the                                         
19 employer by this section or who fails or refuses to file [SEND] the report required by                                
20 (a) of this section within the time required shall, if so required by the board, pay the                                
21 employee or the legal representative of the employee or other person entitled to                                        
22 compensation by reason of the employee's injury or death an additional award equal to                                   
23 20 percent of the amounts that were unpaid when due. The award shall be against                                         
24       either the employer or the insurance carrier, or both.                                                            
25    * Sec. 7. AS 23.30.098 is amended to read:                                                                           
26 Sec. 23.30.098. Regulations. Under AS 44.62.245(a)(2), in adopting or                                                   
27 amending regulations under this chapter, the department may incorporate future                                          
28 amended versions of a document or reference material incorporated by reference if the                                   
29       document or reference material is one of the following:                                                           
30 (1)  Current Procedural Terminology Codes, produced by the American                                                     
31       Medical Association;                                                                                              
01                 (2)  Healthcare Common Procedure Coding System, produced by the                                         
02       federal Centers for Medicare and Medicaid Services [AMERICAN MEDICAL                                            
03       ASSOCIATION];                                                                                                     
04                 (3)  International Classification of Diseases, published by the World                                 
05       Health Organization [AMERICAN MEDICAL ASSOCIATION];                                                             
06                 (4)  Relative Value Guide, produced by the American Society of                                          
07       Anesthesiologists;                                                                                                
08                 (5)  Diagnostic and Statistical Manual of Mental Disorders, produced                                    
09       by the American Psychiatric Association;                                                                          
10 (6)  Current Dental Terminology, published by the American Dental                                                       
11       Association;                                                                                                      
12 (7)  Resource-Based Relative Value Scale, produced by the federal                                                       
13       Centers for Medicare and Medicaid Services;                                                                       
14 (8)  Ambulatory Payment Classifications, produced by the federal                                                        
15       Centers for Medicare and Medicaid Services; [OR]                                                                  
16 (9)  Medicare Severity Diagnosis Related Groups, produced by the                                                        
17       federal Centers for Medicare and Medicaid Services;                                                             
18 (10)  International Classification of Diseases, 10th Revision,                                                        
19       Clinical Modification, developed by the National Center for Health Statistics;                                  
20 (11)  Clinical Diagnostic Laboratory Services, produced by the                                                        
21       federal Centers for Medicare and Medicaid Services;                                                             
22 (12)  Durable Medical Equipment, Prosthetics, Orthotics, and                                                          
23       Supplies, produced by the federal Centers for Medicare and Medicaid Services;                                   
24 (13)  Payment Allowance Limits for Medicare Part B Drugs,                                                             
25 Average Sale Price, produced by the federal Centers for Medicare and Medicaid                                         
26       Services; or                                                                                                    
27 (14)  Ambulance Fee Schedule, produced by the federal Centers for                                                     
28       Medicare and Medicaid Services.                                                                                 
29    * Sec. 8. AS 23.30.100(a) is amended to read:                                                                        
30 (a)  Notice of an injury or death in respect to which compensation is payable                                           
31 under this chapter shall be given within 30 days after the date of such injury or death                                 
01       [TO THE BOARD AND] to the employer.                                                                               
02    * Sec. 9. AS 23.30.100(b) is amended to read:                                                                        
03 (b)  The notice must be in a format prescribed by the director and                                                    
04 [WRITING,] contain the name and address of the employee, a statement of the time,                                       
05 place, nature, and cause of the injury or death, and authority to release records of                                    
06 medical treatment for the injury or death, and be signed by the employee or by a                                        
07 person on behalf of the employee, or, in case of death, by a person claiming to be                                      
08       entitled to compensation for the death or by a person on behalf of that person.                                   
09    * Sec. 10. AS 23.30.100(c) is amended to read:                                                                       
10 (c)  Notice shall be given [TO THE BOARD BY DELIVERING IT OR                                                            
11 SENDING IT BY MAIL ADDRESSED TO THE BOARD'S OFFICE, AND] to the                                                         
12 employer by delivering it to the employer or by sending it by mail addressed to the                                     
13 employer at the employer's last known place of business. If the employer is a                                           
14 partnership, the notice may be given to a partner, if a limited liability company, the                                
15 notice may be given to a member, or if a corporation, the notice may be given to an                                   
16 agent or officer on [UPON] whom legal process may be served or who is in charge of                                    
17       the business in the place where the injury occurred.                                                              
18    * Sec. 11. AS 23.30.155(a) is amended to read:                                                                       
19 (a)  Compensation under this chapter shall be paid periodically, promptly, and                                          
20 directly to the person entitled to it, without an award, except where liability to pay                                  
21 compensation is controverted by the employer. To controvert a claim, the employer                                       
22       must file a notice, in a format [ON A FORM] prescribed by the director, stating                                 
23                 (1)  that the right of the employee to compensation is controverted;                                    
24                 (2)  the name of the employee;                                                                          
25                 (3)  the name of the employer;                                                                          
26                 (4)  the date of the alleged injury or death; and                                                       
27 (5)  the type of compensation and all grounds on [UPON] which the                                                     
28       right to compensation is controverted.                                                                            
29    * Sec. 12. AS 23.30.155(c) is amended to read:                                                                       
30 (c)  The insurer or adjuster shall notify the division in a format [AND THE                                           
31 EMPLOYEE ON A FORM] prescribed by the director that the payment of                                                      
01 compensation has begun or has been increased, decreased, suspended, terminated,                                         
02 resumed, or changed in type. An initial report shall be filed not later than [WITH                                    
03 THE DIVISION AND SENT TO THE EMPLOYEE WITHIN] 28 days after the date                                                    
04 of issuing the first payment of compensation. If, at any time, 21 days or more pass and                             
05 no compensation payment is issued, a report notifying the division [AND THE                                             
06 EMPLOYEE] of the termination or suspension of compensation shall be filed not                                         
07 later than [WITH THE DIVISION AND SENT TO THE EMPLOYEE WITHIN] 28                                                     
08 days after the date the last compensation payment was issued. A report shall also be                                    
09 filed not later than [WITH THE DIVISION AND SENT TO THE EMPLOYEE                                                      
10 WITHIN] 28 days after the date of issuing a payment increasing, decreasing,                                             
11 resuming, or changing the type of compensation paid. When the insurer or adjuster                                     
12 files a report, the division shall notify the employee of the payment or change in                                    
13 payment of compensation. If the division is [AND THE EMPLOYEE ARE] not                                              
14 notified within the 28 days prescribed by this subsection for reporting, the insurer or                                 
15 adjuster shall pay a civil penalty of $100 for the first day plus $10 for each day after                                
16 the first day that the notice was not given. Total penalties under this subsection may                                  
17 not exceed $1,000 for a failure to file a required report. Penalties assessed under this                                
18 subsection are eligible for reduction under (m) of this section. A penalty assessed                                     
19 under this subsection after penalties have been reduced under (m) of this section shall                                 
20 be increased by 25 percent and shall bear interest at the rate established under                                        
21       AS 45.45.010.                                                                                                     
22    * Sec. 13. AS 23.30.155(d) is amended to read:                                                                       
23 (d)  If the employer controverts the right to compensation, the employer shall                                          
24 file with the division, in a format prescribed by the director, [AND SEND TO THE                                      
25 EMPLOYEE] a notice of controversion on or before the 21st day after the employer                                        
26 has knowledge of the alleged injury or death. If the employer controverts the right to                                  
27 compensation after payments have begun, the employer shall file with the division, in                                 
28 a format prescribed by the director, [AND SEND TO THE EMPLOYEE] a notice                                              
29 of controversion not later than the date [WITHIN SEVEN DAYS AFTER] an                                                 
30 installment of compensation payable without an award is due. When payment of                                            
31 temporary disability benefits is controverted solely on the grounds that another                                        
01 employer or another insurer of the same employer may be responsible for all or a                                        
02 portion of the benefits, the most recent employer or insurer who is party to the claim                                  
03 and who may be liable shall make the payments during the pendency of the dispute.                                       
04 When a final determination of liability is made, any reimbursement required, including                                  
05 interest at the statutory rate, and all costs and attorney fees incurred by the prevailing                              
06       employer, shall be made not later than [WITHIN] 14 days after the determination.                                
07    * Sec. 14. AS 23.30.155(m) is amended to read:                                                                       
08 (m)  On or before March 1 of each year, the insurer or adjuster shall file a                                            
09 verified annual report in a format [ON A FORM] prescribed by the director stating                                     
10 the total amount of all compensation by type, the number of claims received and the                                     
11 percentage controverted, medical and related benefits, vocational rehabilitation                                        
12 expenses, legal fees, including a separate total of fees paid to attorneys and fees paid                                
13 for the other costs of litigation, and penalties paid on all claims during the preceding                                
14 calendar year. If the annual report is timely and complete when received by the                                         
15 division and provides accurate information about each category of payments, the                                         
16 director shall review the timeliness of the insurer's or adjuster's reports filed during the                            
17 preceding year under (c) of this section. If, during the preceding year, the insurer or                                 
18 adjuster filed at least 99 percent of the reports on time, the penalties assessed under (c)                             
19 of this section shall be waived. If, during the preceding year, the insurer or adjuster                                 
20 filed at least 97 percent of the reports on time, 75 percent of the penalties assessed                                  
21 under (c) of this section shall be waived. If, during the preceding year, the insurer or                                
22 adjuster filed 95 percent of the reports on time, 50 percent of the penalties assessed                                  
23 under (c) of this section shall be waived. If, during the preceding year, the insurer's or                              
24 adjuster's reports have not been filed on time at least 95 percent of the time, none of                                 
25 the penalties assessed under (c) of this section shall be waived. The penalties that are                                
26 not waived are due and payable when the insurer or adjuster receives notification from                                  
27 the director regarding the timeliness of the reports. If the annual report is not filed by                              
28 March 1 of each year, the insurer or adjuster shall pay a civil penalty of $100 for the                                 
29 first day the annual report is late and $10 for each additional day the report is late. If                              
30 the annual report is incomplete when filed, the insurer or adjuster shall pay a civil                                   
31       penalty of $1,000.                                                                                                
01    * Sec. 15. AS 23.30.205(e) is amended to read:                                                                       
02 (e)  An employer or the employer's carrier shall notify the commissioner of                                             
03 labor and workforce development of any possible claim against the second injury fund                                    
04 as soon as practicable, but in no event later than 100 weeks after the employer or the                                  
05 employer's carrier has knowledge of the injury or death or after the deadline for                                     
06       submitting a claim for reimbursement under (g) of this section.                                                 
07    * Sec. 16. AS 23.30.205 is amended by adding a new subsection to read:                                               
08            (g)  An employer or the employer's insurance carrier shall satisfy all                                       
09       requirements for reimbursement under this section, including notice of any possible                               
10 claim and payment of compensation in excess of 104 weeks, before submitting a claim                                     
11 for reimbursement to the second injury fund. Notwithstanding (a) and (b) of this                                        
12 section, a claim for reimbursement may not be submitted for an injury or death that                                     
13 occurs after August 31, 2018, and must be submitted before October 1, 2020. An                                          
14 employer that qualifies for reimbursement under this section shall continue to receive                                  
15 reimbursement payments on claims accepted by the fund, or ordered by the board,                                         
16       until the fund's liabilities for the claim are extinguished.                                                      
17    * Sec. 17. AS 23.30.230(a) is amended to read:                                                                       
18            (a)  The following persons are not covered by this chapter:                                                  
19                 (1)  a part-time baby-sitter;                                                                           
20                 (2)  a cleaning person;                                                                                 
21                 (3)  harvest help and similar part-time or transient help;                                              
22 (4)  a person employed as a sports official on a contractual basis and                                                  
23 who officiates only at sports events in which the players are not compensated; in this                                  
24 paragraph, "sports official" includes an umpire, referee, judge, scorekeeper,                                           
25       timekeeper, organizer, or other person who is a neutral participant in a sports event;                            
26                 (5)  a person employed as an entertainer on a contractual basis;                                        
27                 (6)  a commercial fisherman, as defined in AS 16.05.940;                                                
28 (7)  an individual who drives a taxicab whose compensation and written                                                  
29 contractual arrangement is as described in AS 23.10.055(a)(13), unless the hours                                        
30 worked by the individual or the areas in which the individual may work are restricted                                   
31       except to comply with local ordinances;                                                                           
01 (8)  a participant in the Alaska temporary assistance program                                                           
02 (AS 47.27) who is engaged in work activities required under AS 47.27.035 other than                                     
03       subsidized or unsubsidized work or on-the-job training;                                                           
04 (9)  a person employed as a player or coach by a professional hockey                                                    
05 team if the person is covered under a health care insurance plan provided by the                                        
06 professional hockey team, the coverage is applicable to both work-related and                                           
07 nonwork-related injuries, and the coverage provides medical and related benefits as                                     
08 required under this chapter, except that coverage may not be limited to two years from                                  
09 the date of injury as described under AS 23.30.095(a); in this paragraph, "health care                                  
10       insurance" has the meaning given in AS 21.12.050;                                                                 
11 (10)  a person working as a qualified real estate licensee who performs                                                 
12 services under a written contract that provides that the person will not be treated as an                               
13 employee for federal income tax or workers' compensation purposes; in this                                              
14 paragraph, "qualified real estate licensee" means a person who is required to be                                        
15 licensed under AS 08.88.161 and whose payment for services is directly related to                                       
16       sales or other output rather than the number of hours worked; [AND]                                               
17 (11)  a transportation network company driver who provides a                                                            
18 prearranged ride or is otherwise logged onto the digital network of a transportation                                    
19       network company as a driver; and                                                                                
20 (12)  a person employed as an independent contractor; a person is                                                     
21       an independent contractor for the purposes of this section only if the person                                   
22                      (A)  has an express contract to perform the services;                                            
23 (B)  is free from direction and control over the means and                                                            
24 manner of providing services, subject only to the right of the individual                                             
25 for whom, or entity for which, the services are provided to specify the                                               
26 desired results, completion schedule, or range of work hours, or to                                                   
27 monitor the work for compliance with contract plans and specifications,                                               
28            or federal, state, or municipal law;                                                                       
29 (C)  incurs most of the expenses for tools, labor, and other                                                          
30 operational costs necessary to perform the services, except that materials                                            
31            and equipment may be supplied;                                                                             
01                      (D)  has an opportunity for profit and loss as a result of the                                   
02            services performed for the other individual or entity;                                                     
03                      (E)  is free to hire and fire employees to help perform the                                      
04            services for the contracted work;                                                                          
05                      (F)  has all business, trade, or professional licenses required                                  
06            by federal, state, or municipal authorities for a business or individual                                   
07            engaging in the same type of services as the person;                                                       
08                      (G)  follows federal Internal Revenue Service requirements                                       
09            by                                                                                                         
10 (i)  obtaining an employer identification number, if                                                                  
11                 required;                                                                                             
12 (ii)  filing business or self-employment tax returns for                                                              
13 the previous tax year to report profit or income earned for the                                                       
14                 same type of services provided under the contract; or                                                 
15 (iii)  intending to file business or self-employment tax                                                              
16 returns for the current tax year to report profit or income earned                                                    
17 for the same type of services provided under the contract if the                                                      
18                 person's business was not operating in the previous tax year; and                                     
19                      (H)  meets at least two of the following criteria:                                               
20 (i)  the person is responsible for the satisfactory                                                                   
21 completion of services that the person has contracted to perform                                                      
22 and is subject to liability for a failure to complete the contracted                                                  
23 work, or maintains liability insurance or other insurance policies                                                    
24 necessary to protect the employees, financial interests, and                                                          
25                 customers of the person's business;                                                                   
26 (ii)  the person maintains a business location or a                                                                   
27 business mailing address separate from the location of the                                                            
28 individual for whom, or the entity for which, the services are                                                        
29                 performed;                                                                                            
30 (iii)  the person provides contracted services for two                                                                
31 or more different customers within a 12-month period or engages                                                       
01 in any kind of business advertising, solicitation, or other marketing                                                 
02 efforts reasonably calculated to obtain new contracts to provide                                                      
03                 similar services.                                                                                     
04    * Sec. 18. AS 23.30.240 is repealed and reenacted to read:                                                           
05 Sec. 23.30.240. Officers of corporations, municipal corporations, and                                                   
06 nonprofit corporations, and members of limited liability companies as employees.                                        
07 (a) Except as provided in (b) of this section, an executive officer elected or appointed                                
08 and empowered in accordance with the charter and bylaws of a corporation or a                                           
09 member of a limited liability company organized under AS 10.50 is not an employee                                       
10 of the business entity under this chapter if the executive officer or member owns at                                    
11 least 10 percent of the business entity. Except as provided in (b) of this section, an                                  
12 executive officer of a municipal corporation or charitable, religious, educational, or                                  
13       other nonprofit corporation is not an employee of the corporation under this chapter.                             
14 (b)  Any type of corporation or limited liability company may bring an                                                  
15 executive officer or a member exempted under (a) of this section within the coverage                                    
16 of the business entity's insurance contract by specifically including the executive                                     
17 officer or member in the contract of insurance. The election to bring the executive                                     
18 officer or member within the business entity's coverage continues in force for the                                      
19 period during which the contract of insurance is in effect. During that period, an                                      
20 executive officer or a member brought within the coverage of the insurance contract is                                  
21       an employee of the business entity under this chapter.                                                            
22    * Sec. 19. AS 23.30.247(c) is amended to read:                                                                       
23 (c)  This section may not be construed to prohibit an employer from requiring a                                         
24 prospective employee to fill out a preemployment questionnaire or application                                           
25 regarding the person's prior health or disability history as long as it is meant to                                     
26 [EITHER DOCUMENT WRITTEN NOTICE FOR SECOND INJURY FUND                                                                  
27 REIMBURSEMENT UNDER AS 23.30.205(c) OR] determine whether the employee                                                  
28 has the physical or mental capacity to meet the documented physical or mental                                           
29       demands of the work.                                                                                              
30    * Sec. 20. AS 23.30.260 is amended by adding a new subsection to read:                                               
31 (c)  Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is                                         
01 not required if the parties who reach an agreement in regard to a claim for injury or                                   
02 death under this chapter agree to the payment of attorney fees, and the agreement in                                    
03 regard to a claim for injury or death does not require board approval under                                             
04       AS 23.30.012.                                                                                                     
05    * Sec. 21. AS 23.30.395(19) is repealed and reenacted to read:                                                       
06                 (19)  "employee" means a person who is not an independent contractor                                    
07       as described in AS 23.30.230 and who, under a contract of hire, express or implied, is                            
08       employed by an employer;                                                                                          
09    * Sec. 22. AS 23.30.040(f) and 23.30.155(q) are repealed.                                                            
10    * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to                           
11 read:                                                                                                                   
12 LEGISLATIVE WORKERS' COMPENSATION WORKING GROUP. (a) The                                                                
13 legislative workers' compensation working group is established to                                                       
14 (1)  review the state's workers' compensation system, including the procedures,                                         
15 compensable injuries, treatment guidelines, monitoring of controlled substance prescription                             
16 and use, and the burden of proof to support a claim;                                                                    
17            (2)  consult with representatives of the following stakeholders:                                             
18 (A)  the Department of Commerce, Community, and Economic                                                                
19       Development;                                                                                                      
20                 (B)  the Department of Labor and Workforce Development;                                                 
21 (C)  the medical services review committee established under                                                            
22       AS 23.30.095(j);                                                                                                  
23                 (D)  organized labor;                                                                                   
24                 (E)  school district administrators; and                                                                
25                 (F)  the state's business community; and                                                                
26            (3)  recommend improvements to laws relating to workers' compensation.                                       
27 (b)  The working group consists of six members, three of whom are members of the                                        
28 house of representatives appointed by the speaker of the house of representatives, and three of                         
29 whom are members of the senate appointed by the president of the senate. The speaker of the                             
30 house of representatives and the president of the senate shall each appoint one member from                             
31 each body as a co-chair.                                                                                                
01 (c)  The working group shall meet in the interim between sessions and prepare a report                                  
02 of its findings, including draft legislation, during the First Regular Session of the Thirty-First                      
03 Alaska State Legislature. The working group shall submit the report, draft legislation, and any                         
04 other accompanying reports to the governor, senate secretary, and chief clerk of the house of                           
05 representatives for distribution to all legislators on or before December 1, 2018, and shall                            
06 notify the legislature that the report is available.                                                                    
07       (d)  The working group may make any additional reports as it considers necessary.                                 
08       (e)  The working group terminates January 31, 2019.                                                               
09    * Sec. 24. The uncodified law of the State of Alaska is amended by adding a new section to                           
10 read:                                                                                                                   
11 APPLICABILITY. (a) AS 23.30.205(e), as amended by sec. 15 of this Act, and                                              
12 AS 23.30.205(g), added by sec. 16 of this Act, apply to notice of any possible claims or                                
13 claims for reimbursement submitted on or after the effective date of secs. 15 and 16 of this                            
14 Act.                                                                                                                    
15 (b)  Notwithstanding AS 23.30.240, as repealed and reenacted by sec. 18 of this Act,                                    
16 the terms of an insurance policy or contract in effect before the effective date of sec. 18 of this                     
17 Act shall comply with AS 23.30.240, as that section read on the day before the effective date                           
18 of sec. 18 of this Act. AS 23.30.240, as repealed and reenacted by sec. 18 of this Act, applies                         
19 to an insurance policy or contract entered into or renewed on or after the effective date of sec.                       
20 18 of this Act.                                                                                                         
21    * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to                           
22 read:                                                                                                                   
23 TRANSITION: SATISFACTION OF SECOND INJURY FUND CLAIMS. Subject to                                                       
24 appropriation, the balance of the second injury fund created under AS 23.30.040 lapses into                             
25 the general fund when all liability for accepted claims under AS 23.30.205 to the second                                
26 injury fund and claims ordered to be paid from that fund have been satisfied.                                           
27    * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to                           
28 read:                                                                                                                   
29 TRANSITION: REGULATIONS. The Department of Labor and Workforce                                                          
30 Development and the Alaska Workers' Compensation Board may adopt regulations to                                         
31 implement secs. 1 - 22 of this Act. The regulations take effect under AS 44.62                                          
01 (Administrative Procedure Act), but not before the effective date of the law implemented by                             
02 the regulation.                                                                                                         
03    * Sec. 27. Sections 15, 16, 23, and 26 of this Act take effect immediately under                                     
04 AS 01.10.070(c).                                                                                                        
05    * Sec. 28. Section 19 of this Act takes effect September 1, 2018.                                                    
06    * Sec. 29. Section 18 of this Act takes effect August 1, 2019.                                                       
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