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