CSHB 419(FIN): "An Act relating to the weekly rate of compensation and minimum and maximum compensation rates for workers' compensation; specifying components of a workers' compensation reemployment plan; relating to the liability of an employer for workers' compensation coverage for a subcontractor; adjusting workers' compensation benefits for permanent partial impairment, for reemployment plans, for rehabilitation benefits, for widows, widowers, and orphans, and for funerals; relating to permanent total disability of an employee receiving rehabilitation benefits; relating to calculation of gross weekly earnings for workers' compensation benefits for seasonal and temporary workers and for workers with overtime or premium pay; setting time limits for requesting a hearing on claims for workers' compensation, for selecting a rehabilitation specialist, and for payment of medical bills; relating to termination and to waiver of rehabilitation benefits, obtaining medical releases, and resolving discovery disputes relating to workers' compensation; setting an interest rate for late payments of workers' compensation; providing for updating the workers' compensation medical fee schedule; and providing for an effective date."
00CS FOR HOUSE BILL NO. 419(FIN) 01 "An Act relating to the weekly rate of compensation and minimum and maximum 02 compensation rates for workers' compensation; specifying components of a workers' 03 compensation reemployment plan; relating to the liability of an employer for 04 workers' compensation coverage for a subcontractor; adjusting workers' 05 compensation benefits for permanent partial impairment, for reemployment plans, 06 for rehabilitation benefits, for widows, widowers, and orphans, and for funerals; 07 relating to permanent total disability of an employee receiving rehabilitation 08 benefits; relating to calculation of gross weekly earnings for workers' compensation 09 benefits for seasonal and temporary workers and for workers with overtime or 10 premium pay; setting time limits for requesting a hearing on claims for workers' 11 compensation, for selecting a rehabilitation specialist, and for payment of medical 12 bills; relating to termination and to waiver of rehabilitation benefits, obtaining 13 medical releases, and resolving discovery disputes relating to workers' 14 compensation; setting an interest rate for late payments of workers' compensation;
01 providing for updating the workers' compensation medical fee schedule; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 INTENT. It is the intent of the legislature that 07 (1) AS 23.30 be interpreted so as to ensure the quick, efficient, fair, and 08 predictable delivery of indemnity and medical benefits to injured workers at a reasonable cost 09 to the employers who are subject to the provisions of AS 23.30; 10 (2) AS 23.30 not be construed by the courts in favor of any party; 11 (3) workers' compensation cases be decided on the merits, except when 12 otherwise provided by statute; 13 (4) increases in benefits be tied to the state average weekly wage so as to more 14 fairly compensate injured workers and that the benefit rate in effect at the time of injury remain 15 the benefit rate for the life of the claim without regard to any changes that may occur in the 16 state average weekly wage subsequent to the year of injury; 17 (5) AS 23.30.041 be amended to clarify existing language and to mandate 18 compliance by the board, the reemployment administrator, and the parties with the deadlines in 19 AS 23.30.041; 20 (6) vocational rehabilitation clearly be a voluntary process that allows claimants 21 to waive their rights to receive reemployment benefits; 22 (7) claimants be entitled to permanent impairment benefits and reduced 23 compensation while involved in the reemployment process so as to encourage injured workers 24 to complete that process as quickly as possible and return to the workplace in an expeditious 25 and efficient manner; 26 (8) claimants provide releases of information that allow employers and insurers 27 and their agents to obtain promptly information needed to investigate and adjust claims; 28 (9) medical information relevant to a claim be discoverable and be promptly 29 provided; and 30 (10) the discovery process be improved to encourage the quick and efficient 31 resolution of discovery disputes under AS 23.30.
01 * Sec. 2. AS 23.30.041(g) is amended to read: 02 (g) Within 15 [10] days after the employee receives the administrator's 03 notification of eligibility for benefits, an employee who desires to use these benefits 04 shall give written notice to the employer of the employee's selection of a rehabilitation 05 specialist who shall provide a complete reemployment benefits plan. Failure to give 06 notice required by this subsection constitutes noncooperation under (n) of this 07 section. If the employer disagrees with the employee's choice of rehabilitation specialist 08 to develop the plan and the disagreement cannot be resolved, then the administrator shall 09 assign a rehabilitation specialist. The employer and employee each have one right of 10 refusal of a rehabilitation specialist. 11 * Sec. 3. AS 23.30.041(h) is amended to read: 12 (h) Within 90 days after the rehabilitation specialist's selection under (g) of this 13 section, the reemployment plan must be formulated and approved. The reemployment 14 plan must require continuous participation by the employee and must maximize the 15 usage of the employee's transferrable skills. The reemployment plan must include at 16 least the following: 17 (1) a determination of the occupational goal in the labor market; 18 (2) an inventory of the employee's technical skills, transferrable skills, 19 physical and intellectual capacities, academic achievement, emotional condition, and 20 family support; 21 (3) a plan to acquire the occupational skills to be employable; 22 (4) the cost estimate of the reemployment plan, including provider fees ; 23 and [;] the cost [AMOUNT] of tuition, books, tools, and supplies , [;] transportation , [;] 24 temporary lodging , [;] or job modification devices; 25 (5) the estimated length of time that the plan will take; 26 (6) the date that the plan will commence; 27 (7) the estimated time of medical stability as predicted by a treating 28 physician or by a physician who has examined the employee at the request of the 29 employer or the board, or by referral of the treating physician; 30 (8) a detailed description and plan schedule; and 31 (9) a finding by the rehabilitation specialist that the inventory under (2)
01 of this subsection indicates that the employee can be reasonably expected to 02 satisfactorily complete the plan and perform in a new occupation within the time and 03 cost limitations of the plan. 04 * Sec. 4. AS 23.30.041(k) is amended to read: 05 (k) Benefits related to the reemployment plan may not extend past two years 06 from date of plan approval or acceptance, whichever date occurs first, at which time the 07 benefits expire. If an employee reaches medical stability before completion of the plan, 08 temporary total disability benefits shall cease and permanent impairment benefits shall 09 then be paid at the employee's temporary total disability rate. If the employee's 10 permanent impairment benefits are exhausted before the completion or termination of 11 the reemployment plan, the employer shall provide compensation [WAGES] equal to 12 70 [60] percent of the employee's spendable weekly wages , but not to exceed 105 13 percent of the average weekly wage [$525], until the completion or termination of the 14 plan , except that any compensation paid under this subsection is reduced by wages 15 earned by the employee while participating in the plan to the extent that the wages 16 earned, when combined with the compensation paid under this subsection, exceed 17 the employee's temporary total disability rate. If permanent partial disability 18 benefits have been paid in a lump sum before the employee requested or was found 19 eligible for reemployment benefits, payment of benefits under this subsection is 20 suspended until permanent partial disability benefits would have ceased, had those 21 benefits been paid at the employee's temporary total disability rate, notwithstanding 22 the provisions of AS 23.30.155(j) . A permanent impairment benefit remaining unpaid 23 upon the completion or termination of the plan shall be paid to the employee in a single 24 lump sum. An employee may not be considered permanently totally disabled so 25 long as the employee is involved in the rehabilitation process under this chapter. 26 The fees of the rehabilitation specialist or rehabilitation professional shall be paid by the 27 employer and may not be included in determining the cost of the reemployment plan. 28 * Sec. 5. AS 23.30.041(l) is amended to read: 29 (l) The cost of the reemployment plan incurred under this section shall be the 30 responsibility of the employer, shall be paid on an expense incurred basis, and may not 31 exceed $13,300 [$10,000].
01 * Sec. 6. AS 23.30.041(n) is amended to read: 02 (n) After the employee has elected to participate in reemployment benefits, if 03 the employer believes the employee has not cooperated , the employer may terminate 04 reemployment benefits on the date of noncooperation. Noncooperation means 05 (1) unreasonable failure to 06 (A) [(1)] keep appointments; 07 (B) [(2)] maintain passing grades; 08 (C) [(3)] attend designated programs; 09 (D) [(4)] maintain contact with the rehabilitation specialist; 10 (E) [(5)] cooperate with the rehabilitation specialist in developing 11 a reemployment plan and participating in activities relating to reemployability on 12 a full-time basis; 13 (F) [(6)] comply with the employee's responsibilities outlined in 14 the reemployment plan; or 15 (G) [(7)] participate in any planned reemployment activity as 16 determined by the administrator ; or 17 (2) failure to give written notice to the employer of the employee's 18 choice of rehabilitation specialists within 15 days after receiving notice of eligibility 19 for benefits from the administrator as required by (g) of this section . 20 * Sec. 7. AS 23.30.041 is amended by adding a new subsection to read: 21 (r) Notwithstanding AS 23.30.012, after medical stability has been determined 22 and a physician has predicted that the employee may have a permanent impairment that 23 may cause the employee to have permanent physical capacities that are less than the 24 physical demands of the employee's job at the time of injury, an employee may waive 25 any benefits or rights under this section, including an eligibility evaluation and benefits 26 related to a reemployment plan. To waive any benefits or rights under this section, an 27 employee must file a statement under oath with the board to notify the parties of the 28 waiver and to specify the scope of benefits or rights that the employee seeks to waive. 29 The statement must be on a form prescribed or approved by the board. The board shall 30 serve the notice of waiver on all parties to the claim within 10 days after filing. The 31 waiver is effective upon service to the party. A waiver effective under this subsection
01 discharges the liability of the employer for the benefits or rights contained in this 02 section. The waiver may not be modified under AS 23.30.130. 03 * Sec. 8. AS 23.30.045(a) is amended to read: 04 (a) An employer is liable for and shall secure the payment to employees of the 05 compensation payable under AS 23.30.041, 23.30.050, 23.30.095, 23.30.145, and 06 23.30.180 - 23.30.215. If the employer is a subcontractor, 07 (1) the contractor is liable for and shall secure the payment of the 08 compensation to employees of the subcontractor unless the subcontractor secures the 09 payment ; and 10 (2) the contractor is not liable for and is not required to secure 11 payment of compensation to the subcontractor, if the subcontractor does not have 12 any employees . 13 * Sec. 9. AS 23.30.095(f) is amended to read: 14 (f) All fees and other charges for medical treatment or service shall be subject 15 to regulation by the board but may not exceed usual, customary, and reasonable fees for 16 the treatment or service in the community in which it is rendered, as determined by the 17 board. An employee may not be required to pay a fee or charge for medical treatment 18 or service. The board shall adopt updated usual, customary, and reasonable 19 medical fee schedules at least once each year. 20 * Sec. 10. AS 23.30.095 is amended by adding new subsections to read: 21 (l) An employer shall pay an employee's bills for medical treatment under this 22 chapter, excluding prescription charges or transportation for medical treatment, within 23 30 days after the date that the employer receives the health care provider's bill or a 24 completed report, whichever is later. 25 (m) Unless the employer controverts a charge, an employer shall reimburse an 26 employee's prescription charges under this chapter within 30 days after the employer 27 received the health care provider's completed report and an itemization of the 28 prescription charges for the employee. Unless the employer controverts a charge, an 29 employer shall reimburse any transportation expenses for medical treatment under this 30 chapter within 30 days after the employer received the health care provider's completed 31 report and an itemization of the dates, destination, and transportation expenses for each
01 date of travel for medical treatment. If the employer does not plan to make or does not 02 make payment or reimbursement in full as required by this subsection, the employer 03 shall notify in writing the employee and the employee's health care provider that 04 payment will not be timely made and the reasons for the nonpayment. The notification 05 must be provided on or before the date that payment is due under this subsection or (l) 06 of this section. 07 * Sec. 11. AS 23.30.105(a) is amended to read: 08 (a) The right to compensation for disability under this chapter is barred unless 09 a claim for it is filed within two years after the employee has knowledge of the nature 10 of the employee's disability and its relation to the employment and after disablement. 11 However, the maximum time for filing the claim in any event other than arising out of 12 an occupational disease shall be four years from the date of injury, and the right to 13 compensation for death is barred unless a claim therefor is filed within one year after 14 the death, except that if payment of compensation has been made without an award on 15 account of the injury or death, a claim may be filed within two years after the date of 16 the last payment of benefits under AS 23.30.041, 23.30.180 [AS 23.30.180], 23.30.185, 17 23.30.190, 23.30.200, or 23.30.215. It is additionally provided that, in the case of latent 18 defects pertinent to and causing compensable disability, the injured employee has full 19 right to claim as shall be determined by the board, time limitations notwithstanding. 20 * Sec. 12. AS 23.30.107(a) is amended to read: 21 (a) Upon written request, an employee shall provide written authority to the 22 employer, carrier, rehabilitation specialist, or reemployment benefits administrator to 23 obtain medical and rehabilitation information relative to the employee's injury. The 24 request must include notice of the employee's right to file a petition for a protective 25 order with the board and must be served by certified mail to the employee's 26 address on the notice of injury or by hand delivery to the employee. This 27 subsection may not be construed to authorize an employer, carrier, rehabilitation 28 specialist, or reemployment benefits administrator to request medical or other 29 information that is not applicable to the employee's injury. 30 * Sec. 13. AS 23.30 is amended by adding a new section to read: 31 Sec. 23.30.108. Prehearings on discovery matters; objections to requests for
01 release of information; sanctions for noncompliance. (a) If an employee objects to 02 a request for written authority under AS 23.30.107, the employee must file a petition 03 with the board seeking a protective order within 14 days after service of the request. 04 If the employee fails to file a petition and fails to deliver the written authority as 05 required by AS 23.30.107 within 14 days after service of the request, the employee's 06 rights to benefits under this chapter are suspended until the written authority is delivered. 07 (b) If a petition seeking a protective order is filed, the board shall set a 08 prehearing within 21 days after the filing date of the petition. At a prehearing conducted 09 by the board's designee, the board's designee has the authority to resolve disputes 10 concerning the written authority. If the board or the board's designee orders delivery 11 of the written authority and if the employee refuses to deliver it within 10 days after 12 being ordered to do so, the employee's rights to benefits under this chapter are 13 suspended until the written authority is delivered. During any period of suspension 14 under this subsection, the employee's benefits under this chapter are forfeited unless the 15 board, or the court determining an action brought for the recovery of damages under this 16 chapter, determines that good cause existed for the refusal to provide the written 17 authority. 18 (c) At a prehearing on discovery matters conducted by the board's designee, the 19 board's designee shall direct parties to sign releases or produce documents, or both, if 20 the parties present releases or documents that are likely to lead to admissible evidence 21 relative to an employee's injury. If a party refuses to comply with an order by the 22 board's designee or the board concerning discovery matters, the board may impose 23 appropriate sanctions in addition to any forfeiture of benefits, including dismissing the 24 party's claim, petition, or defense. If a discovery dispute comes before the board for 25 review of a determination by the board's designee, the board may not consider any 26 evidence or argument that was not presented to the board's designee, but shall determine 27 the issue solely on the basis of the written record. The decision by the board on a 28 discovery dispute shall be made within 30 days. The board shall uphold the designee's 29 decision except when the board's designee's determination is an abuse of discretion. 30 * Sec. 14. AS 23.30.110 is amended by adding a new subsection to read: 31 (h) The filing of a hearing request under (c) of this section suspends the running
01 of the two-year time period specified in (c) of this section. However, if the employee 02 subsequently requests a continuance of the hearing and the request is approved by the 03 board, the granting of the continuance renders the request for hearing inoperative, and 04 the two-year time period specified in (c) of this section continues to run again from the 05 date of the board's notice to the employee of the board's granting of the continuance and 06 of its effect. If the employee fails to again request a hearing before the conclusion of 07 the two-year time period in (c) of this section, the claim is denied. 08 * Sec. 15. AS 23.30.155 is amended by adding a new subsection to read: 09 (p) An employer shall pay interest on compensation that is not paid when due. 10 Interest required under this subsection accrues at the rate specified in AS 09.30.070(a) 11 that is in effect on the date the compensation is due. 12 * Sec. 16. AS 23.30.175(a) is amended to read: 13 (a) The weekly rate of compensation for disability or death may not exceed the 14 maximum compensation rate, may not be less than 22 percent of the maximum 15 compensation rate, [$700] and initially may not be less than $110. However, if the 16 board determines that the employee's spendable weekly wages are less than $110 a week 17 as computed under AS 23.30.220, or less than 22 percent of the maximum 18 compensation rate [$154] a week in the case of an employee who has furnished 19 documentary proof of the employee's wages, it shall issue an order adjusting the weekly 20 rate of compensation to a rate equal to the employee's spendable weekly wages. If the 21 employer can verify that the employee's spendable weekly wages are less than 22 22 percent of the maximum compensation rate [$154], the employer may adjust the 23 weekly rate of compensation to a rate equal to the employee's spendable weekly wages 24 without an order of the board. If the employee's spendable weekly wages are greater 25 than 22 percent of the maximum compensation rate [$154], but 80 percent of the 26 employee's spendable weekly wages is less than 22 percent of the maximum 27 compensation rate [$154], the employee's weekly rate of compensation shall be 22 28 percent of the maximum compensation rate [$154]. Prior payments made in excess 29 of the adjusted rate shall be deducted from the unpaid compensation in the manner the 30 board determines. In any case, the employer shall pay timely compensation. In this 31 subsection, "maximum compensation rate" means 120 percent of the average
01 weekly wage, calculated under (d) of this section, applicable on the date of injury 02 of the employee. 03 * Sec. 17. AS 23.30.175 is amended by adding a new subsection to read: 04 (d) By December 1 of each year, the commissioner shall determine the average 05 weekly wage in this state by dividing the average annual wage in this state for the 06 preceding calendar year by 52. The resulting figure is the average weekly wage in this 07 state applicable for the period beginning January 1 and ending December 31 of the 08 following calendar year. The average annual wage calculation required under this 09 subsection shall include the wages of all employees in the state, both public and private, 10 who are covered by this chapter. 11 * Sec. 18. AS 23.30.190(a) is amended to read: 12 (a) In case of impairment partial in character but permanent in quality, and not 13 resulting in permanent total disability, the compensation is $177,000 [$135,000] 14 multiplied by the employee's percentage of permanent impairment of the whole person. 15 The percentage of permanent impairment of the whole person is the percentage of 16 impairment to the particular body part, system, or function converted to the percentage 17 of impairment to the whole person as provided under (b) of this section. The 18 compensation is payable in a single lump sum, except as otherwise provided in 19 AS 23.30.041, but the compensation may not be discounted for any present value 20 considerations. 21 * Sec. 19. AS 23.30.215(a) is amended to read: 22 (a) If the injury causes death, the compensation is known as a death benefit and 23 is payable in the following amounts to or for the benefit of the following persons: 24 (1) reasonable and necessary funeral expenses not exceeding $3,300 25 [$2,500]; 26 (2) if there is a widow or widower or a child or children of the deceased, 27 the following percentages of the spendable weekly wages of the deceased: 28 (A) 80 percent for the widow or widower with no children; 29 (B) 50 [40] percent for the widow or widower with one child and 30 40 percent for the child; 31 (C) 30 [25] percent for the widow or widower with two or more
01 children and 70 [55] percent divided equally among the children; 02 (D) 100 [80] percent for an only child when there is no widow 03 or widower; 04 (E) 100 [80] percent, divided equally, if there are two or more 05 children and no widow or widower; 06 (3) if the widow or widower remarries, the widow or widower is entitled 07 to be paid in one sum an amount equal to the compensation to which the widow or 08 widower would otherwise be entitled in the two years commencing on the date of 09 remarriage as full and final settlement of all sums due the widow or widower; 10 (4) if there is no widow or widower or child or children, then for the 11 support of father, mother, grandchildren, brothers and sisters, if dependent upon the 12 deceased at the time of injury, 42 percent of the spendable weekly wage of the deceased 13 to such beneficiaries, share and share alike, not to exceed $20,000 in the aggregate. 14 * Sec. 20. AS 23.30.220(a) is amended to read: 15 (a) Computation of compensation under this chapter shall be on the basis of an 16 employee's spendable weekly wage at the time of injury. An employee's spendable 17 weekly wage is the employee's gross weekly earnings minus payroll tax deductions. An 18 employee's gross weekly earnings shall be calculated as follows: 19 (1) if at the time of injury the employee's earnings are calculated by the 20 week, the weekly amount is the employee's gross weekly earnings; 21 (2) if at the time of injury the employee's earnings are calculated by the 22 month, the employee's gross weekly earnings are the monthly earnings multiplied by 12 23 and divided by 52; 24 (3) if at the time of injury the employee's earnings are calculated by the 25 year, the employee's gross weekly earnings are the yearly earnings divided by 52; 26 (4) if at the time of injury the 27 (A) employee's earnings are calculated by the day, hour, or by 28 the output of the employee, the employee's gross weekly earnings are the 29 employee's earnings most favorable to the employee computed by dividing by 30 13 the employee's earnings, [NOT] including overtime or premium pay, earned 31 during any period of 13 consecutive calendar weeks within the 52 weeks
01 immediately preceding the injury; 02 (B) employee has been employed for less than 13 calendar weeks 03 immediately preceding the injury, then, notwithstanding (1) - (3) of this 04 subsection and (A) of this paragraph, the employee's gross weekly earnings are 05 computed by determining the amount that the employee would have earned, 06 [NOT] including overtime or premium pay, had the employee been employed by 07 the employer for 13 calendar weeks immediately preceding the injury and 08 dividing this sum by 13; 09 (5) if at the time of injury the employee's earnings have not been fixed 10 or cannot be ascertained, the employee's earnings for the purpose of calculating 11 compensation are the usual wage for similar services when the services are rendered by 12 paid employees; 13 (6) if at the time of injury the employment is exclusively seasonal or 14 temporary, then, notwithstanding (1) - (5) of this subsection, the gross weekly earnings 15 are 1/50 [1/50th] of the total wages that the employee has earned from all occupations 16 during the 12 calendar months [YEAR] immediately preceding the injury; 17 (7) when the employee is working under concurrent contracts with two 18 or more employers, the employee's earnings from all employers is considered as if 19 earned from the employer liable for compensation; 20 (8) if an employee when injured is a minor, an apprentice, or a trainee 21 in a formal training program, as determined by the board, whose wages under normal 22 conditions would increase during the period of disability, the projected increase may be 23 considered by the board in computing the gross weekly earnings of the employee; 24 (9) if the employee is injured while performing duties as a volunteer 25 ambulance attendant, volunteer police officer, or volunteer fire fighter, then, 26 notwithstanding (1) - (6) of this subsection, the gross weekly earnings for calculating 27 compensation shall be the minimum gross weekly earnings paid a full-time ambulance 28 attendant, police officer, or fire fighter employed in the political subdivision where the 29 injury occurred, or, if the political subdivision has no full-time ambulance attendants, 30 police officers, or fire fighters, at a reasonable figure previously set by the political 31 subdivision to make this determination, but in no case may the gross weekly earnings
01 for calculating compensation be less than the minimum wage computed on the basis of 02 40 hours work per week; 03 (10) if an employee is entitled to compensation under AS 23.30.180 and 04 the board determines that calculation of the employee's gross weekly earnings under (1) - 05 (7) of this subsection does not fairly reflect the employee's earnings during the period 06 of disability, the board shall determine gross weekly earnings by considering the nature 07 of the employee's work, work history, and resulting disability, but compensation 08 calculated under this paragraph may not exceed the employee's gross weekly earnings 09 at the time of injury. 10 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section 11 to read: 12 TRANSITION: REGULATIONS. The agency affected by the changes made by this 13 Act may proceed to adopt regulations under AS 23.30.005 to implement the changes. The 14 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 15 effective date of secs. 2 - 20 of this Act. 16 * Sec. 22. Section 21 of this Act takes effect immediately under AS 01.10.070(c). 17 * Sec. 23. Except as provided in sec. 22 of this Act, this Act takes effect July 1, 2000.