00 HOUSE BILL NO. 245 01 "An Act relating to workers' compensation tax rate and service fees; and relating to 02 electronic service of workers' compensation documents." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 21.09.210(b) is amended to read: 05 (b) Each insurer, and each formerly authorized insurer with respect to 06 premiums written while an authorized insurer in this state, shall pay a tax on the total 07 direct premium written during the year ending on the preceding December 31 and paid 08 for the insurance of property or risks resident or located in the state after deducting 09 from the total direct premium income the applicable cancellations, returned premiums, 10 the unabsorbed portion of any deposit premium, all policy dividends, unabsorbed 11 premiums refunded to policyholders, refunds, savings, savings coupons, and other 12 similar returns paid or credited to policyholders with respect to their policies. 13 Deductions may not be made of cash surrender value of policies. Considerations 14 received on annuity contracts are not included in the direct premium income and are 01 not subject to tax. The tax shall be paid to the director at least annually but not more 02 often than once each quarter on the dates specified by the director. The method of 03 payment must be by the electronic or other payment method specified by the director. 04 Except as provided under (m) of this section, the tax is computed at the rate of 05 (1) for domestic and foreign insurers, except hospital and medical 06 service corporations, 2.7 percent; 07 (2) for hospital and medical service corporations, six percent of their 08 gross premiums less claims paid; 09 (3) for wet marine and transportation insurance, three-quarters of one 10 percent; 11 (4) for workers' compensation insurance, four percent. 12  * Sec. 2. AS 23.05.067(a) is amended to read: 13 (a) Each insurer providing workers' compensation insurance and each 14 employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall 15 pay an annual service fee to the department for the administrative expenses of the state 16 for workers' safety programs under AS 18.60 and the workers' compensation program 17 under AS 23.30 as follows: 18 (1) for each employer, 19 (A) except as provided in (b) of this section, the service fee 20 shall be paid each year to the department at the time that the annual report is 21 required to be filed under AS 23.30.155(m) or (n); and 22 (B) the service fee is a percentage [2.9 PERCENT] of all 23 payments reported to the division of workers' compensation in the department 24 under AS 23.30.155(m) or (n), except second injury fund payments; and 25 (2) for each insurer, the director of the division of insurance shall, 26 under (e) of this section, deposit from funds received from the insurer under 27 AS 21.09.210 a service fee consisting of a percentage [2.5 PERCENT] of the direct 28 premium income for workers' compensation insurance received by the insurer during 29 the year ending on the preceding December 31, subject to all the deductions specified 30 in AS 21.09.210(b). 31  * Sec. 3. AS 23.05.067 is amended by adding a new subsection to read: 01 (j) The board shall, by regulation, establish, annually review, and, if 02 necessary, adjust the percentages described in (a)(1) and (2) of this section. Each 03 percentage may not exceed four percent. 04  * Sec. 4. AS 23.30.011(c) is amended to read: 05 (c) If an employee is entitled to the benefits of this chapter by reason of an 06 injury sustained in this state in employment by an employer who is domiciled in 07 another state and who has not secured the payment of compensation as required by 08 this chapter, the employer or the employer's carrier may file with the board a 09 certificate, issued by the commission or agency of the other state having jurisdiction 10 over workers' compensation claims, certifying that the employer has secured the 11 payment of compensation under the workers' compensation law of the other state and 12 that with respect to that injury the employee is entitled to the benefits provided under 13 that law. In that event 14 (1) the filing of the certificate shall constitute an appointment by the 15 employer or the employer's carrier of the board as the employer's agent for acceptance 16 of the service of process in a proceeding brought by the employee or the employee's 17 dependents to enforce the employee's or their rights under this chapter on account of 18 the injury; 19 (2) if the employer or carrier is not represented by an authorized  20 representative as described in AS 23.30.110(d), the board shall send to the employer 21 or carrier, by [REGISTERED OR] certified mail to the address shown on the 22 certificate, a true copy of any notice of claim or other process served on the director by 23 the employee or the employee's dependents in any proceeding brought to enforce the 24 employee's or their rights under this chapter, unless the employer or carrier agrees  25 to be served by electronic mail; if the employer or carrier is represented by an  26 authorized representative as described in AS 23.30.110(d), the board shall send  27 the document to the employer's or carrier's authorized representative by  28 electronic mail; 29 (3) if the employer is a qualified self-insurer under the workers' 30 compensation law of the other state, the employer, upon submission of evidence 31 satisfactory to the board of the employer's ability to meet the employer's liability to the 01 employee under this chapter, shall be considered to be a qualified self-insurer under 02 this chapter; 03 (4) if the employer's liability under the workers' compensation law of 04 another state is insured, the employer's carrier, as to the employee or the employee's 05 dependents only, shall be considered to be an insurer authorized to write insurance 06 under and be subject to this chapter; however, unless its contract with the employer 07 requires it to pay an amount equivalent to the compensation benefits provided by this 08 chapter, its liability for income benefits or medical and related benefits may not 09 exceed the amounts of the benefits for which the insurer would have been liable under 10 the workers' compensation law of the other state; 11 (5) if the amount for which the employer's insurance is liable under (3) 12 and (4) of this subsection is less than the total of the compensation benefits to which 13 the employee is entitled under this chapter, the board may, if it considers it necessary, 14 require the employer to file security satisfactory to the board to secure the payment of 15 benefits due the employee or the employee's dependents under this chapter; and 16 (6) upon compliance with the preceding requirements of this 17 subsection, the employer, as to the employee only, shall be considered to have secured 18 the payment of compensation under this chapter. 19  * Sec. 5. AS 23.30.107(a) is amended to read: 20 (a) Upon written request, an employee shall provide written authority to the 21 employer, carrier, rehabilitation specialist, or reemployment benefits administrator to 22 obtain medical and rehabilitation information relative to the employee's injury. The 23 request must include notice of the employee's right to file a petition for a protective 24 order with the division and, if the employee is not represented by an authorized  25 representative as described in AS 23.30.110(d), must be served by certified mail to 26 the employee's address on the notice of injury or by hand delivery to the employee,  27 unless the employee agrees to be served by electronic mail. If the employee is  28 represented by an authorized representative as described in AS 23.30.110(d), the  29 notice must be served on the employee's authorized representative by electronic  30 mail. This subsection may not be construed to authorize an employer, carrier, 31 rehabilitation specialist, or reemployment benefits administrator to request medical or 01 other information that is not applicable to the employee's injury. 02  * Sec. 6. AS 23.30.110(b) is amended to read: 03 (b) Within 10 days after a claim is filed the board, in accordance with its 04 regulations, shall notify the employer and any other person, other than the claimant, 05 whom the board considers an interested party that a claim has been filed. If the  06 person is not represented by an authorized representative as described in (d) of  07 this section, the board shall serve the [THE] notice on [MAY BE SERVED 08 PERSONALLY UPON] the employer or other person either personally [,] or [SENT] 09 by certified [REGISTERED] mail, unless the person agrees to be served by  10 electronic mail. If the person is represented by an authorized representative as  11 described in (d) of this section, the board shall serve the notice on the person's  12 authorized representative by electronic mail. 13  * Sec. 7. AS 23.30.110(c) is amended to read: 14 (c) Before a hearing is scheduled, the party seeking a hearing shall file a 15 request for a hearing together with an affidavit stating that the party has completed 16 necessary discovery, obtained necessary evidence, and is prepared for the hearing. An 17 opposing party shall have 10 days after the hearing request is filed to file a response. If 18 a party opposes the hearing request, the board or a board designee shall within 30 days 19 of the filing of the opposition conduct a pre-hearing conference and set a hearing date. 20 If opposition is not filed, the board shall schedule a hearing not [SHALL BE 21 SCHEDULED NO] later than 60 days after the receipt of the hearing request. The 22 board shall give each party at least 10 days' notice of the hearing. If the party is not  23 represented by an authorized representative as described in (d) of this section,  24 the board shall serve the hearing notice [,] either personally or by certified mail,  25 unless the party agrees to be served by electronic mail. If the party is represented  26 by an authorized representative as described in (d) of this section, the board shall  27 serve the hearing notice on the party's authorized representative by electronic  28 mail. After a hearing has been scheduled, the parties may not stipulate to change the 29 hearing date or to cancel, postpone, or continue the hearing, except for good cause as 30 determined by the board. After completion of the hearing the board shall close the 31 hearing record. If a settlement agreement is reached by the parties less than 14 days 01 before the hearing, the parties shall appear at the time of the scheduled hearing to state 02 the terms of the settlement agreement. [WITHIN 30 DAYS AFTER THE HEARING 03 RECORD CLOSES, THE BOARD SHALL FILE ITS DECISION.] If the employer 04 controverts a claim on a board-prescribed controversion notice and the employee does 05 not request a hearing within two years following the filing of the controversion notice, 06 the claim is denied. 07  * Sec. 8. AS 23.30.110(d) is amended to read: 08 (d) At the hearing the claimant and the employer may each present evidence in 09 respect to the claim. A person [AND] may represent a party in a matter pending  10 before the board if the party authorizes the representation [BE REPRESENTED 11 BY ANY PERSON AUTHORIZED] in writing [FOR THAT PURPOSE]. The  12 authorized representative shall file a written notice of appearance with the board  13 and shall serve a copy of the notice on all parties. The notice must be in a format  14 prescribed by the director and include the representative's electronic mail  15 address and other information prescribed by the board in regulation. 16  * Sec. 9. AS 23.30.110(e) is repealed and reenacted to read: 17 (e) Within 30 days after the hearing record closes, the board shall file the 18 board's decision electronically in the office of the board and serve a copy of the 19 decision on each party. If a party is not represented by an authorized representative as 20 described in (d) of this section, the board shall serve the decision by certified mail to 21 the party's last known address, unless the party agrees to be served by electronic mail. 22 If the party is represented by an authorized representative as described in (d) of this 23 section, the board shall serve a copy of the decision on the party's authorized 24 representative by electronic mail.