00                       CS FOR HOUSE BILL NO. 214(L&C)                                                                    
01 "An Act repealing the Workers' Compensation Appeals Commission; relating to                                             
02 decisions and orders of the Alaska Workers' Compensation Board; relating to superior                                    
03 court jurisdiction over appeals from Alaska Workers' Compensation Board decisions                                       
04 and orders; repealing Rules 201.1, 401.1, and 501.1, Alaska Rules of Appellate                                          
05 Procedure, and amending Rules 202(a), 204(a) - (c), 210(e), 508, 601(b), 602, and 603,                                  
06 Alaska Rules of Appellate Procedure; and providing for an effective date."                                              
07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
08    * Section 1. AS 23.30.005 is amended by adding a new subsection to read:                                           
09            (n)  The board, in its administrative capacity, shall make available, upon                                   
10       request, the decisions and orders of the former Workers' Compensation Appeals                                     
11       Commission. Decisions and orders of the former Workers' Compensation Appeals                                      
12       Commission are final and conclusive unless appealed to the Alaska Supreme Court                                   
13       and shall stand instead of the order of the board from which review was taken. Unless                             
01       reversed by the Alaska Supreme Court, decisions of the former Workers'                                            
02       Compensation Appeals Commission have the force of legal precedent.                                                
03    * Sec. 2. AS 23.30.107(b) is amended to read:                                                                      
04            (b)  Medical or rehabilitation records, and the employee's name, address, social                             
05       security number, electronic mail address, and telephone number contained on any                                   
06       record, in an employee's file maintained by the division or held by the board [OR THE                             
07       COMMISSION] are not public records subject to public inspection and copying under                                 
08       AS 40.25.100 - 40.25.295. This subsection does not prohibit                                                       
09                 (1)  the reemployment benefits administrator, the division, the board,                                  
10       [THE COMMISSION,] or the department from releasing medical or rehabilitation                                      
11       records in an employee's file, without the employee's consent, to a physician providing                           
12       medical services under AS 23.30.095(k) or 23.30.110(g), a party to a claim filed by                               
13       the employee, or a governmental agency; or                                                                        
14                 (2)  the quoting or discussing of medical or rehabilitation records                                     
15       contained in an employee's file during a hearing on a claim for compensation or in a                              
16       decision or order of the board [OR COMMISSION].                                                                   
17    * Sec. 3. AS 23.30.108(d) is amended to read:                                                                      
18            (d)  If the employee files a petition seeking a protective order to recover                                  
19       medical and rehabilitation information that has been provided but is not related to the                           
20       employee's injury, and the board or the board's designee grants the protective order,                             
21       the board or the board's designee granting the protective order shall direct the division,                        
22       the board, [THE COMMISSION,] and the parties to return to the employee, as soon as                                
23       practicable following the issuance of the protective order, all medical and                                       
24       rehabilitation information, including copies, in their possession that is unrelated to the                        
25       employee's injury under the protective order.                                                                     
26    * Sec. 4. AS 23.30.108(e) is amended to read:                                                                      
27            (e)  If the board or the board's designee limits the medical or rehabilitation                               
28       information that may be used by the parties to a claim, either by an order on the record                          
29       or by issuing a written order, the division, the board, [THE COMMISSION,] and a                                   
30       party to the claim may request and an employee shall provide or authorize the                                     
31       production of medical or rehabilitation information only to the extent of the limitations                         
01       of the order. If information has been produced that is outside of the limits designated                           
02       in the order, the board or the board's designee shall direct the party in possession of                           
03       the information to return the information to the employee as soon as practicable                                  
04       following the issuance of the order.                                                                              
05    * Sec. 5. AS 23.30 is amended by adding a new section to read:                                                     
06            Sec. 23.30.126. Review of board order. (a) A decision or order of the board                                
07       becomes effective when filed in the office of the board under AS 23.30.110, and a                                 
08       decision or order of the board becomes final on the 31st day after it is filed. After a                           
09       decision or order becomes final, a party may seek review by filing a notice of appeal                             
10       with the superior court under AS 44.62.560 under the rules of appellate procedure.                                
11            (b)  If not in accordance with law, a compensation order may be suspended or                                 
12       set aside, in whole or in part, through injunction proceedings in the superior court                              
13       brought by a party in interest against the board and all other parties to the proceedings                         
14       before the board. The payment of the amounts required by an award may not be stayed                               
15       pending final decision in the proceeding unless upon application for an interlocutory                             
16       injunction the court on hearing, after not less than three days' notice to the parties in                         
17       interest and the board, allows the stay of payment, in whole or in part, where                                    
18       irreparable damage would otherwise ensue to the employer. The order of the court                                  
19       allowing a stay shall contain a specific finding, based upon evidence submitted to the                            
20       court and identified by reference to it, that irreparable damage would result to the                              
21       employer, and specify the nature of the damage.                                                                   
22            (c)  If an employer fails to comply with a compensation order making an award                                
23       that has become final, a beneficiary of the award or the board may apply for the                                  
24       enforcement of the order to the superior court. If the court determines that the order                            
25       was made and served in accordance with law, and that the employer or the officers or                              
26       agents of the employer have failed to comply with it, the court shall enforce obedience                           
27       to the order by writ of injunction or by other proper process to enjoin upon the                                  
28       employer and the officers and agents of the employer compliance with the order.                                   
29            (d)  Proceedings for suspending, setting aside, or enforcing a compensation                                  
30       order, whether rejecting a claim or making an award, may not be instituted except as                              
31       provided in this section and AS 23.30.170.                                                                        
01            (e)  Subject to an employer's or employee's burden of proof, a finding of fact                               
02       made by the board as a part of a compensation order is conclusive unless the court                                
03       specifically finds that a reasonable person could not have reached the conclusion made                            
04       by the board.                                                                                                     
05            (f)  The director may intervene in an appeal under AS 44.62.560 or petition for                              
06       review. If a party is not represented by counsel and a compensation order concerns an                             
07       unsettled question of law, the director may file an appeal or petition for review to                              
08       obtain a ruling.                                                                                                  
09            (g)  A court may not make an award of costs and attorney fees against an                                     
10       injured worker unless the court finds that the worker's position on judicial review was                           
11       frivolous or unreasonable or the judicial review was sought in bad faith.                                         
12    * Sec. 6. AS 23.30.155(f) is amended to read:                                                                      
13            (f)  If compensation payable under the terms of an award is not paid within 14                               
14       days after it becomes due, there shall be added to that unpaid compensation an amount                             
15       equal to 25 percent of the unpaid installment. The additional amount shall be paid at                             
16       the same time as, but in addition to, the compensation, unless review of the                                      
17       compensation order making the award as provided under AS 23.30.126                                            
18       [AS 23.30.008] and an interlocutory injunction staying payments is allowed by the                                 
19       court. The additional amount shall be paid directly to the recipient to whom the unpaid                           
20       compensation was to be paid.                                                                                      
21    * Sec. 7. AS 39.50.200(b)(31) is amended to read:                                                                  
22                 (31)  Workers' Compensation Board (AS 23.30.005) [AND                                                   
23       WORKERS' COMPENSATION APPEALS COMMISSION (AS 23.30.007)];                                                         
24    * Sec. 8. Rules 201.1, 401.1, and 501.1, Alaska Rules of Appellate Procedure, are repealed.                        
25    * Sec. 9. AS 23.30.007, 23.30.008, 23.30.009, 23.30.125, 23.30.127, 23.30.128, 23.30.129,                          
26 23.30.395(10); AS 39.25.110(40); AS 44.64.020(a)(12), and 44.64.020(a)(13) are repealed.                                
27    * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section to                         
28 read:                                                                                                                   
29       INDIRECT COURT RULE AMENDMENTS. The provisions of AS 23.30.126, added                                             
30 by sec. 5 of this Act, and the repeal of AS 23.30.007, 23.30.008, 23.30.125, 23.30.127,                                 
31 23.30.128, and 23.30.129 in sec. 9 of this Act have the effect of changing Rules 202(a),                                
01 204(a) - (c), 210(e), 508, 601(b), 602, and 603, Alaska Rules of Appellate Procedure, by                                
02 repealing the Alaska Workers' Compensation Commission and providing that appeals from                                   
03 the Alaska Workers' Compensation Board be brought in the superior court, and by limiting                                
04 costs and attorney fees that may be awarded against an injured worker.                                                  
05    * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07       APPLICABILITY. Before December 2, 2016, AS 23.30.007 - 23.30.009,                                                 
08 23.30.107(b), 23.30.108(d) and (e), 23.30.125, 23.30.127, 23.30.128, 23.30.129, 23.30.155(f),                           
09 23.30.395(10), AS 39.25.110(40), AS 39.50.200(b)(31), and AS 44.64.020(a)(12) and (13), as                              
10 they existed on the day before the effective date of this Act, continue to apply to appeals,                            
11 petitions for review, and other proceedings pending before the Workers' Compensation                                    
12 Appeals Commission. Appeals, petitions for review, and other proceedings under this section                             
13 shall be continued in the Workers' Compensation Appeals Commission until December 1,                                    
14 2016. AS 23.30.126, added by sec. 5 of this Act, and AS 23.30.155(f), as amended by sec. 6                              
15 of this Act, do not apply to appeals, petitions for review, or other proceedings under this                             
16 section. AS 23.30.129, as it read on the day before the effective date of this Act, applies to                          
17 appeals to the Alaska Supreme Court from final decisions of the Workers' Compensation                                   
18 Appeals Commission issued on or before December 1, 2016.                                                                
19    * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to                         
20 read:                                                                                                                   
21       TRANSITIONAL PROVISIONS. (a) Appeals, petitions for review, and other                                             
22 proceedings pending before the Workers' Compensation Appeals Commission before June 1,                                  
23 2016, and not completed in the Workers' Compensation Appeals Commission before                                          
24 December 2, 2016, shall be transferred to the superior court in the judicial district where the                         
25 original claim was filed, under AS 22.10.020 and Rules 604(b) and 609, Alaska Rules of                                  
26 Appellate Procedure.                                                                                                    
27       (b)  Appeals, petitions for review, and other proceedings that seek review of Alaska                              
28 Workers' Compensation Board decisions and that have not been filed and are not pending                                  
29 before the Workers' Compensation Appeals Commission on or before May 31, 2016, must be                                  
30 filed in the superior court on or after June 1, 2016, within 30 days after the date that the board                      
31 decision becomes final.                                                                                                 
01       (c)  On or after November 1, 2016, a party seeking review of a Workers'                                           
02 Compensation Appeals Commission decision may file an appeal or petition for review with                                 
03 the supreme court under AS 23.30.129, as that section read on the day before the effective                              
04 date of this Act.                                                                                                       
05       (d)  On December 2, 2016, the Workers' Compensation Appeals Commission shall                                      
06 transfer the files of all appeals, petitions for review, and other proceedings that were pending                        
07 before June 1, 2016, and that were not completed before December 2, 2016, to the superior                               
08 court, which will assume jurisdiction of the action. The Workers' Compensation Appeals                                  
09 Commission shall provide notice to all parties of record 30 days before it transfers a pending                          
10 case, advising the parties of the transfer of jurisdiction and the effective date of the transfer.                      
11 The Workers' Compensation Appeals Commission shall prepare each file in accordance with                                 
12 the Alaska Rules of Appellate Procedure and mail or hand deliver the record in the pending                              
13 case to the superior court in the judicial district where the original claim was filed. If the                          
14 superior court determines that the record does not comply with the Alaska Rules of Appellate                            
15 Procedure, the court may return the record to the Workers' Compensation Appeals                                         
16 Commission and direct the Workers' Compensation Appeals Commission to conform the                                       
17 record as may be necessary.                                                                                             
18    * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to                         
19 read:                                                                                                                   
20       TRANSITION: TERMS OF COMMISSIONERS. Notwithstanding AS 23.30.007(e),                                              
21 the terms of individuals appointed to the Workers' Compensation Appeals Commission expire                               
22 December 31, 2016.                                                                                                      
23    * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to                         
24 read:                                                                                                                   
25       CONDITIONAL EFFECT. This Act takes effect only if secs. 8 and 10 of this Act                                      
26 receive the two-thirds majority vote of each house required by art. IV, sec. 15, Constitution of                        
27 the State of Alaska.                                                                                                    
28    * Sec. 15. This Act takes effect June 1, 2016.