SB 311: "An Act providing for a special deposit for workers' compensation insurers; relating to the board of governors of the Alaska Insurance Guaranty Association; relating to covered workers' compensation claims paid by the Alaska Insurance Guaranty Association; stating the intent of the legislature, and setting out limitations, concerning the interpretation, construction, and implementation of workers' compensation laws; relating to restructuring the Alaska workers' compensation system; eliminating the Alaska Workers' Compensation Board; establishing a division of workers' compensation within the Department of Labor and Workforce Development and assigning certain Alaska Workers' Compensation Board functions to the division and the Department of Labor and Workforce Development; establishing a Workers' Compensation Appeals Commission; assigning certain functions of the Alaska Workers' Compensation Board to the Workers' Compensation Appeals Commission; relating to agreements that discharge workers' compensation liability; providing for hearing officers in workers' compensation proceedings; relating to workers' compensation awards; relating to an employer's failure to insure and keep insured or provide security; providing for appeals from compensation orders; relating to workers' compensation proceedings; providing for supreme court jurisdiction of appeals from the Workers' Compensation Appeals Commission; providing for a maximum amount for the cost-of-living adjustment for workers' compensation benefits; providing for administrative penalties for employers uninsured or without adequate security for workers' compensation; relating to assigned risk pools and insurers; and providing for an effective date."
00 SENATE BILL NO. 311 01 "An Act providing for a special deposit for workers' compensation insurers; relating to 02 the board of governors of the Alaska Insurance Guaranty Association; relating to 03 covered workers' compensation claims paid by the Alaska Insurance Guaranty 04 Association; stating the intent of the legislature, and setting out limitations, concerning 05 the interpretation, construction, and implementation of workers' compensation laws; 06 relating to restructuring the Alaska workers' compensation system; eliminating the 07 Alaska Workers' Compensation Board; establishing a division of workers' 08 compensation within the Department of Labor and Workforce Development and 09 assigning certain Alaska Workers' Compensation Board functions to the division and 10 the Department of Labor and Workforce Development; establishing a Workers' 11 Compensation Appeals Commission; assigning certain functions of the Alaska Workers' 12 Compensation Board to the Workers' Compensation Appeals Commission; relating to
01 agreements that discharge workers' compensation liability; providing for hearing 02 officers in workers' compensation proceedings; relating to workers' compensation 03 awards; relating to an employer's failure to insure and keep insured or provide security; 04 providing for appeals from compensation orders; relating to workers' compensation 05 proceedings; providing for supreme court jurisdiction of appeals from the Workers' 06 Compensation Appeals Commission; providing for a maximum amount for the cost-of- 07 living adjustment for workers' compensation benefits; providing for administrative 08 penalties for employers uninsured or without adequate security for workers' 09 compensation; relating to assigned risk pools and insurers; and providing for an 10 effective date." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 13 to read: 14 LEGISLATIVE INTENT. It is the intent of the legislature by secs. 3 - 6 of this Act 15 (1) to reform the workers' compensation system in Alaska to ensure the 16 continued payment of benefits in the event of an insurer insolvency; 17 (2) to give parties affected by the insolvency of a workers' compensation 18 insurer a voice on the board of governors of the Alaska Insurance Guaranty Association; and 19 (3) to reduce the overall costs of workers' compensation premiums to 20 employers. 21 * Sec. 2. AS 08.18.101(1) is amended to read: 22 (1) to the extent required under AS 23.30, workers' compensation 23 insurance that is purchased from a private insurer who is admitted to do business in the 24 state and that shows coverage in this state, appropriate employee classifications, and 25 rates applicable in this state, or a valid workers' compensation self-insurance 26 certificate issued by the director of the division of workers' compensation 27 [ALASKA WORKERS' COMPENSATION BOARD]; and
01 * Sec. 3. AS 21.09.090 is amended by adding a new subsection to read: 02 (e) In addition to any other deposit required under this section, an insurer who 03 transacts workers' compensation insurance in this state shall maintain in the state a 04 special deposit of cash or securities eligible for deposit under AS 21.24.030 in an 05 amount not less than the basic capital or surplus required of an insurer under 06 AS 21.09.070 for the protection of persons in this state covered under workers' 07 compensation insurance. The insurer shall maintain the deposit under this subsection 08 in this state as long as there is any outstanding liability of the insurer for workers' 09 compensation in this state. If the insurer is unable to pay workers' compensation 10 claims due under AS 23.30 because the insurer is an insolvent insurer, upon the 11 director's request, the deposit is immediately available to the Alaska Insurance 12 Guaranty Association (AS 21.80) for continuation of claims benefits to eligible 13 workers. In this subsection, "insolvent insurer" has the meaning given in 14 AS 21.80.180. 15 * Sec. 4. AS 21.24.130(d) is amended to read: 16 (d) Except as provided in AS 21.09.090(e), if [IF] the insurer is subject to 17 delinquency proceedings as defined in AS 21.78, upon the order of a court of 18 competent jurisdiction, the director shall yield the assets and securities held on deposit 19 to the receiver, conservator, rehabilitator, or liquidator of the insurer, or to any other 20 properly designated official or officials who succeed to the management and control of 21 the insurer's assets. 22 * Sec. 5. AS 21.80.050 is repealed and reenacted to read: 23 Sec. 21.80.050. Board of governors. (a) The board of governors of the 24 association consists of nine members appointed by the director. Terms are established 25 in the plan of operation of the association. Membership of the board of governors 26 consists of 27 (1) four members who represent member insurers; 28 (2) two members who represent employers; 29 (3) two members who represent labor; 30 (4) one member who represents licensees. 31 (b) Members appointed shall serve staggered three-year terms and may be
01 removed for cause by the director. 02 (c) Within 90 days after a vacancy occurs on the board, the director shall fill 03 the vacancy for the remaining period of the term of the vacating member. 04 (d) In appointing a member insurer to the board, the director shall consider, 05 among other things, whether all member insurers are fairly represented. 06 (e) Members of the board may be reimbursed from the assets of the 07 association for expenses incurred by them as members of the board of governors. 08 * Sec. 6. AS 21.80.180(6) is amended to read: 09 (6) "covered claim" 10 (A) means an unpaid claim, including one of unearned 11 premiums, that arises out of and is within the coverage and not in excess of the 12 applicable limits of an insurance policy issued by an insurer to which this 13 chapter applies if the insurer becomes an insolvent insurer and 14 (i) [(A)] the claimant or insured is a resident of this 15 state at the time of the insured event; [,] or 16 (ii) [(B)] the claim is a first party claim for damage to 17 property that is permanently located in this state; 18 (B) ["COVERED CLAIM"] does not include 19 (i) an amount awarded for punitive or exemplary 20 damages; 21 (ii) [,] an amount sought as a return of premium under a 22 retroactive rating plan; 23 (iii) [,] or an amount due a reinsurer, insurer, insurance 24 pool, or underwriting association, as subrogation recoveries or 25 otherwise; or 26 (iv) a workers' compensation claim if the insured's 27 net worth exceeds $25,000,000 on December 31 of the year 28 preceding the date the insurer becomes an insolvent insurer; in this 29 sub-subparagraph, "insured's net worth" includes the aggregate 30 net worth of the insured and all of its subsidiaries as calculated on 31 a consolidated basis;
01 * Sec. 7. AS 23.05.067 (a) is amended to read: 02 (a) Each insurer providing workers' compensation insurance and each 03 employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall 04 pay an annual service fee to the department for the administrative expenses of the state 05 for workers' safety programs under AS 18.60 and the workers' compensation program 06 under AS 23.30 as follows: 07 (1) for each employer, 08 (A) except as provided in (b) of this section, the service fee 09 shall be paid each year to the department at the time that the annual report is 10 required to be filed under AS 23.30.155(m) or (n); and 11 (B) the service fee is 2.9 percent of all payments reported to the 12 director of the divisions of workers' compensation [ALASKA WORKERS' 13 COMPENSATION BOARD] under AS 23.30.155(m) or (n), except second 14 injury fund payments; and 15 (2) for each insurer, the director of the division of insurance shall, 16 under (e) of this section, deposit from funds received from the insurer under 17 AS 21.09.210 a service fee of 1.82 percent of the direct premium income for workers' 18 compensation insurance received by the insurer during the year ending on the 19 preceding December 31, subject to all the deductions specified in AS 21.09.210(b). 20 * Sec. 8. AS 23.05.067(e) is amended to read: 21 (e) Annual service fees and civil penalties collected under this section and 22 fees collected by the Workers' Compensation Appeals Commission shall be 23 deposited in the workers' safety and compensation administration account in the state 24 treasury. Under AS 37.05.146(c), the Workers' Compensation Appeals Commission 25 fees, service fees, and civil penalties shall be accounted for separately, and 26 appropriations from the account are not made from the unrestricted general fund. The 27 legislature may appropriate money from the account for expenditures by the 28 department for necessary costs incurred by the department in the administration of the 29 workers' safety programs contained in AS 18.60 and of the Alaska Workers' 30 Compensation Act contained in AS 23.30. The legislature may appropriate money 31 from the account for expenditures by the department for necessary costs
01 incurred by the Workers' Compensation Appeals Commission and for the 02 administration of adjudication of claims and petitions arising under AS 23.30. 03 Nothing in this subsection creates a dedicated fund or dedicates the money in the 04 account for a specific purpose. Money deposited in the account does not lapse at the 05 end of a fiscal year unless otherwise provided by an appropriation. 06 * Sec. 9. AS 23.30 is amended by adding a new section to read: 07 Sec. 23.30.001. Intent of the legislature and construction of chapter. It is 08 the intent of the legislature that 09 (1) this chapter be interpreted so as to ensure the quick, efficient, fair, 10 and predictable delivery of indemnity and medical benefits to injured workers at a 11 reasonable cost to the employers who are subject to the provisions of this chapter; 12 (2) workers' compensation cases shall be decided on their merits and 13 that the common law rule of liberal construction based on a remedial basis and 14 beneficent purposes of workers' compensation legislation may not apply in workers' 15 compensation cases; the workers' compensation system in Alaska is based on a mutual 16 renunciation of common law rights and defenses by both employers and employees; 17 the employees' rights to sue for damages are limited by the provisions of this chapter, 18 and the employers' rights to raise defenses, such as lack of negligence and comparative 19 negligence of the employee or others, are curtailed; workers' compensation laws may 20 not be given a broad liberal construction in favor of the claimant or employee, nor 21 may the interests of the employer be favored over those of the employee; 22 (3) hearings in workers' compensation cases shall be impartial and fair 23 to all parties and that all parties shall be afforded due process and an opportunity to be 24 heard and for their arguments and evidence to be fairly considered; doubt as to the 25 substance of evidence may not be interpreted in favor of one party or the other, and 26 evidence shall be carefully and rationally examined. 27 * Sec. 10. AS 23.30.005 is repealed and reenacted to read: 28 Sec. 23.30.005. Alaska workers' compensation division; duties of 29 department; regulations; notice of revocation of self-insurance. (a) There is 30 established in the Department of Labor and Workforce Development a division of 31 workers' compensation. The commissioner shall appoint the director of the division.
01 The director shall have at least three years' experience in the field of workers' 02 compensation. 03 (b) The director is responsible to the commissioner for the execution of the 04 duties and responsibilities imposed by this chapter and the regulations adopted under 05 this chapter. The director shall 06 (1) direct and supervise the administrative, technical, investigative, and 07 enforcement activities of the division of workers' compensation; 08 (2) develop, in cooperation with others, programs for the improvement 09 of the workers' compensation system; 10 (3) prepare regulations, consistent with the responsibilities of the 11 division under this chapter, that are required to implement and administer this chapter 12 for adoption by the department; 13 (4) notify employees, employers, physicians, and rehabilitation 14 specialists of their rights and obligations under this chapter; 15 (5) perform other lawful acts necessary to carry out the purposes of 16 this chapter. 17 (c) The department shall adopt rules for the periodic selection, retention, and 18 removal of rehabilitation specialists and physicians under AS 23.30.041 and 19 23.30.095. 20 (d) The department may adopt regulations concerning the medical care 21 provided for in this chapter and, except as committed to the authority of the Workers' 22 Compensation Appeals Commission, may adopt regulations to carry out the provisions 23 of this chapter. 24 (e) The director shall notify the contracting agency of the state or of a political 25 subdivision of the state when it revokes the self-insurance certificate of an employer 26 holding a contract with the state or a political subdivision of the state. 27 * Sec. 11. AS 23.30 is amended by adding new sections to read: 28 Sec. 23.30.007. Workers' Compensation Appeals Commission. (a) There 29 is established in the Department of Labor and Workforce Development a Workers' 30 Compensation Appeals Commission. The commission has jurisdiction to hear appeals 31 from decisions and orders of hearing officers and the director. Jurisdiction of the
01 office is limited to administrative appeals arising under this chapter. 02 (b) The commission consists of three members appointed by the governor and 03 confirmed by a majority of the members of the legislature in joint session. Members 04 shall be appointed for a term of four years. A member may act and receive 05 compensation from the date of appointment until confirmation or rejection by the 06 legislature. 07 (c) A member of the commission shall, at the time of appointment, 08 (1) be a citizen of the United States, a resident of this state for five 09 years preceding appointment, licensed to practice law in this state, and a member in 10 good standing of the Alaska Bar Association; and 11 (2) have been in the active practice of law for least five years with 12 experience of workers' compensation law in this state. 13 (d) The governor shall appoint one member of the commission to serve as 14 chair of the commission. The chair of the commission shall serve a term of three years 15 but may not be appointed for successive terms as chair of the commission. 16 (e) A vacancy arising in the commission shall be filled by appointment of the 17 governor and confirmed by a majority of the members of the legislature in joint 18 session. Except as provided in AS 39.05.080(4), an appointee selected to fill a 19 vacancy shall hold office for the unexpired term of the member whose vacancy is 20 filled. A vacancy in the commission does not impair the authority of a quorum of 21 members to exercise all the powers and perform all the duties of the commission. A 22 majority of the members of the commission constitutes a quorum. 23 (f) A member of the commission may be removed from office by the governor 24 for good cause. A member of the commission, to be removed for cause, shall be given 25 a copy of the charges and afforded an opportunity to be heard in person or by counsel 26 in the member's own defense upon not less than 10 days' notice. If the member is 27 removed for cause, the governor shall file with the lieutenant governor a complete 28 statement of all charges made against the member, the governor's findings on the 29 charges, and the record of any proceedings. In this subsection, "good cause" includes 30 (1) misconduct in office or violation of AS 39.52; 31 (2) conviction of a felony;
01 (3) conviction of a misdemeanor related to workers' compensation; 02 (4) inability to serve, neglect of duty, incompetence, unjustified failure 03 to handle the caseload assigned, or similar nonfeasance of office; and 04 (5) failure to meet the requirements of this section relating to 05 qualification for office. 06 (g) The monthly base salary for a member of the commission shall be equal to 07 Step C, Range 29, of the salary schedule in AS 39.27.011(a) for Juneau, Alaska. The 08 chair of the commission shall receive a monthly salary equal to Step F, Range 30 of 09 the salary schedule in AS 39.27.011(a) for Juneau, Alaska. Members of the 10 commission are in the exempt service under AS 39.25.110. 11 (h) Each member of the commission, before entering upon the duties of office, 12 shall take and subscribe to the oath prescribed for principal officers of the state. 13 (i) The office and staff of the commission shall be physically separate from 14 office and staff of the division. 15 Sec. 23.30.008. Powers and duties of the commission. (a) The commission 16 shall be the exclusive and final authority for the hearing and determination of all 17 questions of law and fact arising under this chapter in those matters that have been 18 appealed to the commission, except for an appeal to the Alaska Supreme Court. The 19 commission may not have jurisdiction in any case that does not arise under this 20 chapter or in any criminal case. On any matter taken to the commission, the decision 21 of the commission is final and conclusive, unless appealed to the Alaska Supreme 22 Court, and shall stand in lieu of the order of the director or the hearing officer from 23 which the appeal was taken. Unless reversed by the Alaska Supreme Court, decisions 24 of the commission shall have the force of legal precedent. 25 (b) The commission, in its administrative capacity, shall maintain, index, and 26 make available for public inspection the final administrative decisions and orders of 27 the commission and of hearing officers. To promote consistency among legal 28 determinations, the chair of the commission may review and circulate among the other 29 members of the commission the drafts of formal decisions, decisions upon 30 reconsideration, and other legal opinions of the other members of the commission. 31 The drafts are confidential documents and are not subject to disclosure.
01 (c) The commission, in its administrative capacity, may adopt regulations 02 implementing its authority and duties under this chapter, including rules of procedure 03 and evidence for proceedings before the commission and before hearing officers in 04 workers' compensation proceedings under AS 23.30.090 and 23.30.110, and for the 05 adjudication of all claims and petitions and appeals under this chapter. The provisions 06 of AS 44.62 (Administrative Procedure Act) apply to the adoption of regulations by 07 the commission. 08 (d) The commission shall award a successful party reasonable costs and, if the 09 party is represented by an attorney, attorney fees that the commission determines to be 10 fully compensatory and reasonable. However, the commission may not make an 11 award of attorney fees against an injured worker unless the commission finds that the 12 worker's position on appeal was frivolous or unreasonable or the appeal was taken in 13 bad faith. 14 (e) The commission, in its administrative capacity, may adopt and alter an 15 official seal and do all things necessary, convenient, or desirable to carry out the 16 powers expressly granted or necessarily implied in this chapter. 17 Sec. 23.30.009. Powers and duties of the chair of the commission. (a) The 18 chair of the commission shall exercise general supervision of the office of the 19 commission, appeals, and workers' compensation hearings and direct the 20 administrative functions of the commission. The chair may 21 (1) employ and supervise commission staff and hearing officers and 22 appoint a commission clerk; 23 (2) establish and implement a time management system for the 24 commission, staff, and hearing officers and manage the calendar of hearings and 25 appeals; 26 (3) assign the work of the commission members, hearing officers and 27 staff so that hearings and appeals are resolved as expeditiously and competently as 28 possible, including designating hearing officers to hear preliminary matters; and 29 (4) prepare an annual budget of the commission. 30 (b) The chair of the commission shall, not later than March 15 of each year, 31 make available to the public and file with the lieutenant governor, a report regarding
01 the commission, including data regarding time periods between initial receipt and final 02 decisions on appeals. 03 * Sec. 12. AS 23.30.011(c) is amended to read: 04 (c) If an employee is entitled to the benefits of this chapter by reason of an 05 injury sustained in this state in employment by an employer who is domiciled in 06 another state and who has not secured the payment of compensation as required by 07 this chapter, the employer or the employer's carrier may file with the division 08 [BOARD] a certificate, issued by the commission or agency of the other state having 09 jurisdiction over workers' compensation claims, certifying that the employer has 10 secured the payment of compensation under the workers' compensation law of the 11 other state and that, with respect to that injury, the employee is entitled to the benefits 12 provided under that law. In that event, 13 (1) the filing of the certificate shall constitute an appointment by the 14 employer or the employer's carrier of the director [BOARD] as the employer's agent 15 for acceptance of the service of process in a proceeding brought by the employee or 16 the employee's dependents to enforce the employee's or their rights under this chapter 17 on account of the injury; 18 (2) the director [BOARD] shall send to the employer or carrier, by 19 registered or certified mail to the address shown on the certificate, a true copy of any 20 notice of claim or other process served on the director by the employee or the 21 employee's dependents in any proceeding brought to enforce the employee's or their 22 rights under this chapter; 23 (3) if the employer is a qualified self-insurer under the workers' 24 compensation law of the other state, the employer, upon submission of evidence 25 satisfactory to the director [BOARD] of the employer's ability to meet the employer's 26 liability to the employee under this chapter, shall be considered to be a qualified self- 27 insurer under this chapter; 28 (4) if the employer's liability under the workers' compensation law of 29 another state is insured, the employer's carrier, as to the employee or the employee's 30 dependents only, shall be considered to be an insurer authorized to write insurance 31 under and be subject to this chapter; however, unless its contract with the employer
01 requires it to pay an amount equivalent to the compensation benefits provided by this 02 chapter, its liability for income benefits or medical and related benefits may not 03 exceed the amounts of the benefits for which the insurer would have been liable under 04 the workers' compensation law of the other state; 05 (5) if the amount for which the employer's insurance is liable under (3) 06 and (4) of this subsection is less than the total of the compensation benefits to which 07 the employee is entitled under this chapter, the director [BOARD] may, if the 08 director [IT] considers it necessary, require the employer to file security satisfactory 09 to the director [BOARD] to secure the payment of benefits due the employee or the 10 employee's dependents under this chapter; and 11 (6) upon compliance with the preceding requirements of this 12 subsection, the employer, as to the employee only, shall be considered to have secured 13 the payment of compensation under this chapter. 14 * Sec. 13. AS 23.30.012 is amended to read: 15 Sec. 23.30.012. Agreements in regard to claims. (a) At any time after 16 death, or after 30 days subsequent to the date of the injury, the employer and the 17 employee or the beneficiary or beneficiaries, as the case may be, have the right to 18 reach an agreement in regard to a claim for injury or death under this chapter [IN 19 ACCORDANCE WITH THE APPLICABLE SCHEDULE IN THIS CHAPTER], but 20 a memorandum of the agreement in a form prescribed by the director [BOARD] shall 21 be filed with the division [BOARD]. Otherwise, the agreement is void for any 22 purpose. An agreement filed with the division discharges the liability of the 23 employer for the compensation, notwithstanding the provisions of AS 23.30.130, 24 23.30.160, and 23.30.245, and is enforceable as a compensation order. 25 (b) If the claimant or beneficiary is not represented by an attorney 26 licensed to practice in this state, or the beneficiary is a minor, the division shall 27 request review of the agreement by a hearing officer. If approved by a hearing 28 officer [THE BOARD], the agreement is enforceable the same as an order or award of 29 a hearing officer [THE BOARD] and discharges the liability of the employer for the 30 compensation notwithstanding the provisions of AS 23.30.130, 23.30.160, and 31 23.30.245. The agreement shall be approved by a hearing officer [THE BOARD]
01 only when the terms conform to the provisions of this chapter and, if it involves or is 02 likely to involve permanent disability, a hearing officer [THE BOARD] may require 03 an impartial medical examination and a hearing in order to determine whether or not 04 to approve the agreement. A [THE BOARD MAY APPROVE] lump-sum settlement 05 may be approved [SETTLEMENTS] when it appears to be to the best interest of the 06 employee or beneficiary or beneficiaries. 07 * Sec. 14. AS 23.30.015(b) is amended to read: 08 (b) Acceptance of compensation under [AN AWARD IN] a compensation 09 order filed with the office of the commission [BY THE BOARD] operates as an 10 assignment to the employer of all rights of the person entitled to compensation and the 11 personal representative of a deceased employee to recover damages from the third 12 person unless the person or representative entitled to compensation commences an 13 action against the third person within one year after an order [AWARD]. 14 * Sec. 15. AS 23.30.015(e) is amended to read: 15 (e) An amount recovered by the employer under an assignment, whether by 16 action or compromise, shall be distributed as follows: 17 (1) the employer shall retain an amount equal to 18 (A) the expenses incurred by the employer with respect to the 19 action or compromise, including [A] reasonable attorney fees [FEE] 20 determined by a hearing officer [THE BOARD]; 21 (B) the cost of all benefits actually furnished by the employer 22 under this chapter; 23 (C) all amounts paid as compensation and second injury 24 [SECOND-INJURY] fund payments, and, if the employer is self-insured or 25 uninsured, all service fees paid under AS 23.05.067; 26 (D) the present value of all amounts payable later as 27 compensation, computed from a schedule prepared by the director [BOARD]; 28 and the present value of the estimated cost of all benefits to be furnished later 29 under AS 23.30.095 [AS ESTIMATED BY THE BOARD]; the amounts so 30 computed and estimated shall [TO] be retained by the employer as a trust fund 31 to pay compensation and the cost of benefits as they become due and to pay
01 any finally remaining excess sum to the person entitled to compensation or to 02 the representative; and 03 (2) the employer shall pay any excess to the person entitled to 04 compensation or to the representative of that person. 05 * Sec. 16. AS 23.30.015(j) is amended to read: 06 (j) Notice of the commencement of an action against a third party shall be 07 given to the division [BOARD] and to all interested parties within 30 days. If a 08 request for a hearing under AS 23.30.110 has been filed, notice of the 09 commencement of the action shall also be filed with the commission. 10 * Sec. 17. AS 23.30.025(a) is amended to read: 11 (a) An insurer may not enter into or issue a policy of insurance under this 12 chapter until its policy form has been submitted to and approved by the director of the 13 division of insurance. The director of the division of insurance may not approve the 14 policy form of an insurance company until the company files with it the certificate of 15 the director of the division of insurance showing that the company is authorized to 16 transact the business of workers' compensation insurance in the state. The filing of a 17 policy form by an insurance company with the division of workers' compensation 18 [BOARD] for approval constitutes, on the part of the company, a conclusive and 19 unqualified acceptance of the provisions of this chapter [,] and an agreement by it to 20 be bound by them. 21 * Sec. 18. AS 23.30.030(5) is amended to read: 22 (5) A termination of the policy by cancellation is not effective as to the 23 employees of the insured employer covered by it until 20 days after written notice of 24 the termination has been received by the division [BOARD]. If the employer has a 25 contract with the state or a home rule or other political subdivision of the state, and the 26 employer's policy is cancelled due to nonpayment of a premium, the termination of the 27 policy is not effective as to the employees of the insured employer covered by it until 28 20 days after written notice of the termination has been received by the contracting 29 agency, and the agency has the option of continuing the payments on behalf of the 30 employer in order to keep the policy in force. If, however, the employer has secured 31 insurance with another insurance carrier, cancellation is effective as of the date of the
01 new coverage. 02 * Sec. 19. AS 23.30.030(6) is amended to read: 03 (6) All claims for compensation, death benefits, physician's fees, 04 nurse's charges, hospital services, hospital supplies, medicines, prosthetic devices, 05 transportation charges to the nearest point where adequate medical facilities are 06 available, and burial expenses [,] may be made directly against either the employer or 07 the insurer, or both, and the order or award of a hearing officer [THE BOARD] may 08 be made against either the employer or the insurer or both. 09 * Sec. 20. AS 23.30.040(a) is amended to read: 10 (a) There is created a second injury fund, administered by the director 11 [COMMISSIONER]. Money in the second injury fund may only be paid for the 12 benefit of those persons entitled to payment of benefits from the second injury fund 13 under this chapter. Payments from the second injury fund must be made by the 14 director [COMMISSIONER] in accordance with the orders [AND AWARDS] of the 15 director [BOARD]. 16 * Sec. 21. AS 23.30.040(d) is amended to read: 17 (d) The director [BOARD] may refund a payment made into the second 18 injury fund if the employer or insurance carrier shows that it made the payment by 19 mistake or inadvertence, or if it shows there existed at the time of the death of the 20 employee a beneficiary entitled to benefits under AS 23.30.215. 21 * Sec. 22. AS 23.30.041(a) is amended to read: 22 (a) The director [BOARD] shall select and employ a reemployment benefits 23 administrator. The director [BOARD] may authorize the administrator to select and 24 employ additional staff. The administrator is in the partially exempt service under 25 AS 39.25.120. 26 * Sec. 23. AS 23.30.041(b) is amended to read: 27 (b) The administrator shall 28 (1) enforce regulations adopted by the department [BOARD] to 29 implement this section; 30 (2) recommend regulations for adoption by the department [BOARD] 31 that establish performance and reporting criteria for rehabilitation specialists;
01 (3) enforce the quality and effectiveness of reemployment benefits 02 provided for under this section; 03 (4) review on an annual basis the performance of rehabilitation 04 specialists to determine continued eligibility for delivery of rehabilitation services; 05 (5) submit to the department, on or before May 1 of each year, a report 06 of reemployment benefits provided under this section for the previous calendar year; 07 the report must include a general section, sections related to each rehabilitation 08 specialist employed under this section, and a statistical summary of all rehabilitation 09 cases, including 10 (A) the estimated and actual cost of each active rehabilitation 11 plan; 12 (B) the estimated and actual time of each rehabilitation plan; 13 (C) a status report on all individuals completing or terminating 14 a reemployment benefits program including a return to work date; 15 (D) the cost of reemployment benefits; 16 (6) maintain a list of rehabilitation specialists who meet the 17 qualifications established under this section; 18 (7) promote awareness among physicians, adjusters, injured workers, 19 employers, employees, attorneys, training providers, and rehabilitation specialists of 20 the reemployment program established in this subsection. 21 * Sec. 24. AS 23.30.041(d) is amended to read: 22 (d) Within 30 days after the referral by the administrator, the rehabilitation 23 specialist shall perform the eligibility evaluation and issue a report of findings. The 24 administrator may grant up to an additional 30 days for performance of the eligibility 25 evaluation upon notification of unusual and extenuating circumstances and the 26 rehabilitation specialist's request. Within 14 days after receipt of the report from the 27 rehabilitation specialist, the administrator shall notify the parties of the employee's 28 eligibility for reemployment preparation benefits. Within 10 days after the decision, 29 either party may seek review of the decision by requesting a hearing under 30 AS 23.30.110. The hearing shall be held within 30 days after it is requested. The 31 hearing officer [BOARD] shall uphold the decision of the administrator except for
01 abuse of discretion on the administrator's part. 02 * Sec. 25. AS 23.30.041(h) is amended to read: 03 (h) Within 90 days after the rehabilitation specialist's selection under (g) of 04 this section, the reemployment plan must be formulated and approved. The 05 reemployment plan must require continuous participation by the employee and must 06 maximize the usage of the employee's transferable skills. The reemployment plan must 07 include at least the following: 08 (1) a determination of the occupational goal in the labor market; 09 (2) an inventory of the employee's technical skills, transferable skills, 10 physical and intellectual capacities, academic achievement, emotional condition, and 11 family support; 12 (3) a plan to acquire the occupational skills to be employable; 13 (4) the cost estimate of the reemployment plan, including provider 14 fees; and the cost of tuition, books, tools [,] and supplies, transportation, temporary 15 lodging, or job modification devices; 16 (5) the estimated length of time that the plan will take; 17 (6) the date that the plan will commence; 18 (7) the estimated time of medical stability as predicted by a treating 19 physician or by a physician who has examined the employee at the request of the 20 employer or the director [BOARD], or by referral of the treating physician; 21 (8) a detailed description and plan schedule; 22 (9) a finding by the rehabilitation specialist that the inventory under (2) 23 of this subsection indicates that the employee can be reasonably expected to 24 satisfactorily complete the plan and perform in a new occupation within the time and 25 cost limitations of the plan; and 26 (10) a provision requiring that, after a person has been assigned to 27 perform medical management services for an injured employee, the person shall send 28 written notice to the employee, the employer, and the employee's physician explaining 29 in what capacity the person is employed, whom the person represents, and the scope of 30 the services to be provided. 31 * Sec. 26. AS 23.30.041(j) is amended to read:
01 (j) The employee, rehabilitation specialist, and the employer shall sign the 02 reemployment benefits plan. If the employer and employee fail to agree on a 03 reemployment plan, either party may submit a reemployment plan for approval to the 04 administrator; the administrator shall approve or deny a plan within 14 days after the 05 plan is submitted; within 10 days after [OF] the decision, either party may seek 06 review of the decision by requesting a hearing under AS 23.30.110; a hearing officer 07 [THE BOARD] shall uphold the decision of the administrator unless evidence is 08 submitted supporting an allegation of abuse of discretion on the part of the 09 administrator; a hearing officer [THE BOARD] shall render a decision within 30 10 days after completion of the hearing. 11 * Sec. 27. AS 23.30.041(o) is amended to read: 12 (o) Upon the request of either party, the administrator shall decide whether the 13 employee has not cooperated as provided under (n) of this section. A hearing before 14 the administrator shall be held within 30 days after it is requested. The administrator 15 shall issue a decision within 14 days after the hearing. Within 10 days after the 16 administrator files the decision, either party may seek review of the decision by 17 requesting a hearing under AS 23.30.110; a hearing officer [THE BOARD] shall 18 uphold the decision of the administrator unless evidence is submitted supporting an 19 allegation of abuse of discretion on the part of the administrator; a hearing officer 20 [THE BOARD] shall render a decision within 30 days after completion of the hearing. 21 * Sec. 28. AS 23.30.041(p) is amended to read: 22 (p) When the United States Department of Labor publishes a new edition, 23 revision, or replacement for the "Selected Characteristics of Occupations Defined in 24 the Revised Dictionary of Occupational Titles" referred to in (e) of this section, the 25 director [BOARD] shall, not later than 90 days after the last day of the month in 26 which the new edition, revision, or replacement standard is published, hold an open 27 meeting under AS 44.62.310 to select the proposed date on which the new edition, 28 revision, or replacement standard will be implemented to make all eligibility 29 determinations required under (e) of this section. The date selected by the department 30 [BOARD] for implementing the new edition, revision, or replacement standard may 31 not be later than 90 days after the last day of the month in which the new edition,
01 revision, or replacement standard is published. After the meeting, the director 02 [BOARD] shall issue a public notice announcing the date selected by the 03 department. The requirements of AS 44.62.010 - 44.62.300 do not apply to the 04 selection or announcement of the date under this subsection. 05 * Sec. 29. AS 23.30.041(q) is amended to read: 06 (q) Notwithstanding AS 23.30.012, after medical stability has been determined 07 and a physician has predicted that the employee may have a permanent impairment 08 that may cause the employee to have permanent physical capacities that are less than 09 the physical demands of the employee's job at the time of injury, an employee may 10 waive any benefits or rights under this section, including an eligibility evaluation and 11 benefits related to a reemployment plan. To waive any benefits or rights under this 12 section, an employee must file a statement under oath with the division [BOARD] to 13 notify the parties of the waiver and to specify the scope of benefits or rights that the 14 employee seeks to waive. The statement must be on a form prescribed or approved by 15 the director [BOARD]. The division [BOARD] shall serve the notice of waiver on 16 all parties to the claim within 10 days after filing. The waiver is effective upon service 17 to the party. A waiver effective under this subsection discharges the liability of the 18 employer for the benefits or rights contained in this section. The waiver may not be 19 modified under AS 23.30.130. 20 * Sec. 30. AS 23.30.045(d) is amended to read: 21 (d) A contract may not be awarded by the state or a home rule or other 22 political subdivision of the state unless the person to whom the contract is to be 23 awarded has submitted to the contracting agency proof, furnished by the insurance 24 carrier, of current coverage by workers' compensation insurance from an insurance 25 company or association authorized to transact the business of workers' compensation 26 insurance in this state or proof, furnished by the division [BOARD], of a current 27 certificate of self-insurance from the director [BOARD]. The person to whom the 28 contract is awarded shall keep the workers' compensation insurance policy in effect 29 during the life of the contract with the state or political subdivision. If the state or the 30 political subdivision of the state fails to obtain proof of coverage or self-insurance or 31 to protect itself under (e) of this section, and an employee of the contractor is injured
01 during the term of the contract, the state or the political subdivision is liable for 02 workers' compensation to the employee if the employee is unable to recover from the 03 employer because of the employer's lack of financial assets. The state or the political 04 subdivision is not liable, however, to the employee for workers' compensation if the 05 employee can recover from the employer under (a) and (b) of this section. 06 * Sec. 31. AS 23.30.045(e) is amended to read: 07 (e) When a contracting agency of the state or a political subdivision receives 08 notice that the workers' compensation insurance policy of an employer to whom the 09 agency has awarded a contract has been cancelled due to nonpayment of a premium, 10 without being replaced by a comparable policy, the agency may either terminate the 11 contract with the employer or continue the premium payments on behalf of the 12 employer in order to keep the policy in force during the life of the agency's contract. 13 If the agency chooses to keep the policy in force, it may deduct its payments from the 14 contract price or bring an action against the employer to recover the amount of the 15 payments. When the contracting agency receives notice that the director [BOARD] 16 has revoked a certificate of self-insurance held by a person to whom a contract has 17 been awarded, the agency may terminate the contract. This subsection does not limit 18 the causes of action or remedies that the state or political subdivision may have against 19 the employer. 20 * Sec. 32. AS 23.30.065 is amended to read: 21 Sec. 23.30.065. Employer's record of injuries. An employer shall keep a 22 record in respect of an injury to an employee. The record must contain the 23 information of disease, other disability, or death with [IN] respect to an injury that the 24 division [BOARD] requires, and must be available to inspection by the division 25 [BOARD] or by a state authority at the times and under the conditions that the 26 department [BOARD] prescribes by regulation. 27 * Sec. 33. AS 23.30.070(a) is amended to read: 28 (a) Within 10 days from the date the employer has knowledge of an injury or 29 death or from the date the employer has knowledge of a disease or infection, alleged 30 by the employee or on behalf of the employee to have arisen out of and in the course 31 of the employment, the employer shall send to the division [BOARD] a report setting
01 out 02 (1) the name, address, and business of the employer; 03 (2) the name, address, and occupation of the employee; 04 (3) the cause and nature of the alleged injury or death; 05 (4) the year, month, day, and hour when and the particular locality 06 where the alleged injury or death occurred; and 07 (5) the other information that the division [BOARD] may require. 08 * Sec. 34. AS 23.30.070(b) is amended to read: 09 (b) Additional reports with [IN] respect to the injury and to the condition of 10 the employee shall be sent by the employer to the division [BOARD] at the times and 11 in the manner that the director [BOARD] prescribes. 12 * Sec. 35. AS 23.30.070(d) is amended to read: 13 (d) Mailing of the report and copy to the division [BOARD] in a stamped 14 envelope, within the time prescribed in (a) or (b) of this section, is compliance with 15 this section. 16 * Sec. 36. AS 23.30.070(f) is amended to read: 17 (f) An employer who fails or refuses to send a report required of the employer 18 by this section or who fails or refuses to send the report required by (a) of this section 19 within the time required shall, if so required by a hearing officer after a hearing 20 [THE BOARD], pay the employee or the legal representative of the employee or other 21 person entitled to compensation by reason of the employee's injury or death an 22 additional award equal to 20 percent of the amounts that were unpaid when due. The 23 award shall be against either the employer or the insurance carrier, or both. 24 * Sec. 37. AS 23.30.075 is amended to read: 25 Sec. 23.30.075. Employer's liability to pay. (a) An employer under this 26 chapter, unless exempted, shall either insure and keep insured for the employer's 27 liability under this chapter in an insurance company or association duly authorized to 28 transact the business of workers' compensation insurance in this state, or shall furnish 29 the division [BOARD] satisfactory proof of the employer's financial ability to pay 30 directly the compensation provided for. If an employer elects to pay directly, the 31 director [BOARD] may, in the director's [ITS] discretion, require the deposit of an
01 acceptable security, indemnity, or bond to secure the payment of compensation 02 liabilities as they are incurred. 03 (b) If an employer fails to insure and keep insured employees subject to this 04 chapter or fails to obtain a certificate of self-insurance from the division [BOARD], 05 upon conviction, the court shall impose a fine of $10,000 and may impose a sentence 06 of imprisonment for not more than one year. If an employer is a corporation, all 07 persons who, at the time of the injury or death, had authority to insure the corporation 08 or apply for a certificate of self-insurance, and the person actively in charge of the 09 business of the corporation shall be subject to the penalties prescribed in this 10 subsection and shall be personally, jointly, and severally liable together with the 11 corporation for the payment of all compensation or other benefits for which the 12 corporation is liable under this chapter if the corporation at that time is not insured or 13 qualified as a self-insurer. 14 * Sec. 38. AS 23.30.080(d) is amended to read: 15 (d) If an employer fails to insure or provide security as required by 16 AS 23.30.075, the director [BOARD] may petition a hearing officer to issue a stop 17 order prohibiting the use of employee labor by the employer until the employer insures 18 or provides security as required by AS 23.30.075. The failure of an employer to file 19 evidence of compliance as required by AS 23.30.085 creates a rebuttable presumption 20 that the employer has failed to insure or provide security as required by AS 23.30.075. 21 If the director presents evidence with the petition that hazards in the employment 22 constitute a danger that could reasonably be expected to immediately cause an 23 employee death or serious physical harm, the petition may be heard on shortened 24 notice. If an employer fails to comply with a stop order issued under this section, a 25 hearing officer [THE BOARD] shall assess a civil penalty of $1,000 a [PER] day. 26 The employer may not obtain a public contract with the state or a political subdivision 27 of the state for three years following the violation of the stop order. 28 * Sec. 39. AS 23.30.080 is amended by adding new subsections to read: 29 (e) If an employer fails, refuses, or neglects to insure or provide security as 30 required by AS 23.30.075(a), the director may petition a hearing officer to order 31 payment of a civil penalty to the state of an amount up to $100 for each employee for
01 each day an employee is employed while the employer is uninsured or does not 02 provide the security required by AS 23.30.075(a). The failure of an employer to file 03 evidence of compliance as required by AS 23.30.085 creates a rebuttable presumption 04 that the employer has failed to obtain and keep insurance or provide security as 05 required by AS 23.30.075(a). If the director presents evidence with the petition that 06 hazards in the employment constitute a danger that could reasonably be expected to 07 immediately cause an employee death or serious physical harm, the petition may be 08 heard on shortened notice. 09 (f) If an employer fails to pay a civil penalty ordered under (d) or (e) of this 10 section within seven days after the date of service of the order upon the employer, the 11 director may declare the employer in default. The director shall file a certified copy of 12 the penalty order and declaration of default with the clerk of the superior court. The 13 court shall, upon the filing of the copy of the order and declaration, enter judgment for 14 the amount declared in default if it is in accordance with law. Anytime after a 15 declaration of default, the attorney general, when requested to do so by the director, 16 shall take appropriate action to assure collection of defaulted payment. Review of the 17 judgment may be had as provided under the Alaska Rules of Civil Procedure. Final 18 proceedings to execute the judgment may be had by writ of execution. 19 * Sec. 40. AS 23.30.085(a) is amended to read: 20 (a) An employer subject to this chapter, unless exempted, shall initially file 21 evidence of compliance with the insurance provisions of this chapter with the division 22 [BOARD], in the form prescribed by the director [IT]. The employer shall also give 23 evidence of compliance within 10 days after the termination of the employer's 24 insurance by expiration or cancellation. These requirements do not apply to an 25 employer who has certification from the division [BOARD] of the employer's 26 financial ability to pay compensation directly without insurance. 27 * Sec. 41. AS 23.30.090 is amended to read: 28 Sec. 23.30.090. Self-insurance certificates. If an employer has complied 29 with the provisions of this chapter relating to self-insurance and has paid annual 30 service fees assessed under AS 23.05.067, the director [BOARD] shall issue the 31 employer a certificate that shall remain in force for a period fixed by the director
01 [BOARD]. The director [BOARD] may, upon at least 10 days' notice and a hearing, 02 revoke a self-insurance certificate upon satisfactory proof that an employer is no 03 longer entitled to it. The hearing shall be held by a hearing officer. The hearing 04 officer shall make a proposed decision to the director, who may adopt, amend or 05 reject it in the director's discretion. After revocation, the director [BOARD] may 06 grant a new certificate to an employer, upon the employer's petition and satisfactory 07 proof of the employer's financial ability as provided in this chapter. An employer 08 authorized as a self-insurer shall provide claims facilities through its own staffed 09 adjusting facilities located within the state, or independent, licensed, resident adjusters 10 with power to effect settlement within the state. 11 * Sec. 42. AS 23.30.090 is amended by adding a new subsection to read: 12 (b) All testimony given before a hearing officer under this section shall be 13 recorded, but need not be transcribed unless further review is initiated. Hearings 14 before a hearing officer shall be open to the public. 15 * Sec. 43. AS 23.30.095(a) is amended to read: 16 (a) The employer shall furnish medical, surgical, and other attendance or 17 treatment, nurse and hospital service, medicine, crutches, and apparatus for the period 18 that [WHICH] the nature of the injury or the process of recovery requires, not 19 exceeding two years from and after the date of injury to the employee. However, if the 20 condition requiring the treatment, apparatus, or medicine is a latent one, the two-year 21 period runs from the time the employee has knowledge of the nature of the employee's 22 disability and its relationship to the employment and after disablement. If [IT SHALL 23 BE ADDITIONALLY PROVIDED THAT, IF] continued treatment or care or both 24 beyond the two-year period is indicated, the injured employee has the right of review 25 by a hearing officer [THE BOARD]. The hearing officer [BOARD] may authorize 26 continued treatment or care or both as the process of recovery may require. When 27 medical care is required, the injured employee may designate a licensed physician to 28 provide all medical and related benefits. The employee may not make more than one 29 change in the employee's choice of attending physician without the written consent of 30 the employer. Referral to a specialist by the employee's attending physician is not 31 considered a change in physicians. Upon procuring the services of a physician, the
01 injured employee shall give proper notification of the selection to the employer within 02 a reasonable time after first being treated. Notice of a change in the attending 03 physician shall be given before the change. 04 * Sec. 44. AS 23.30.095(c) is amended to read: 05 (c) A claim for medical or surgical treatment [,] or treatment requiring 06 continuing and multiple treatments of a similar nature is not valid and enforceable 07 against the employer unless, within 14 days following treatment, the physician or 08 health care provider giving the treatment or the employee receiving it furnishes to the 09 employer and the division [BOARD] notice of the injury and treatment, preferably on 10 a form prescribed by the director [BOARD]. A hearing officer [THE BOARD] 11 shall, however, excuse the failure to furnish notice within 14 days when the hearing 12 officer [IT] finds it to be in the interest of justice to do so, and the hearing officer 13 [IT] may, upon application by a party in interest, make an award for the reasonable 14 value of the medical or surgical treatment so obtained by the employee. When a claim 15 is made for a course of treatment requiring continuing and multiple treatments of a 16 similar nature, in addition to the notice, the physician or health care provider shall 17 furnish a written treatment plan if the course of treatment will require more frequent 18 outpatient visits than the standard treatment frequency for the nature and degree of the 19 injury and the type of treatments. The treatment plan shall be furnished to the 20 employee and the employer within 14 days after treatment begins. The treatment plan 21 must include objectives, modalities, frequency of treatments, and reasons for the 22 frequency of treatments. If the treatment plan is not furnished as required under this 23 subsection, neither the employer nor the employee may be required to pay for 24 treatments that exceed the frequency standard. The director shall propose and the 25 department [BOARD] shall adopt regulations establishing standards for frequency of 26 treatment. 27 * Sec. 45. AS 23.30.095(d) is amended to read: 28 (d) If at any time during the period the employee unreasonably refuses to 29 submit to medical or surgical treatment, a hearing officer [THE BOARD] may by 30 order suspend the payment of further compensation while the refusal continues, and no 31 compensation may be paid at any time during the period of suspension, unless the
01 circumstances justified the refusal. 02 * Sec. 46. AS 23.30.095(e) is amended to read: 03 (e) The employee shall, after an injury, at reasonable times during the 04 continuance of the disability, if requested by the employer or when ordered by a 05 hearing officer [THE BOARD], submit to an examination by a physician or surgeon 06 of the employer's choice authorized to practice medicine under the laws of the 07 jurisdiction in which the examination occurs, furnished and paid for by the employer. 08 The employer may not make more than one change in the employer's choice of a 09 physician or surgeon without the written consent of the employee. Referral to a 10 specialist by the employer's physician is not considered a change in physicians. An 11 examination requested by the employer not less than 14 days after injury, and every 60 12 days thereafter, shall be presumed to be reasonable, and the employee shall submit to 13 the examination without further request or order by a hearing officer [THE BOARD]. 14 Unless medically appropriate, the physician shall use existing diagnostic data to 15 complete the examination. Facts relative to the injury or claim communicated to or 16 otherwise learned by a physician or surgeon who may have attended or examined the 17 employee [,] or who may have been present at an examination are not privileged, 18 either in the hearings provided for in this chapter or an action to recover damages 19 against an employer who is subject to the compensation provisions of this chapter. If 20 an employee refuses to submit to an examination provided for in this section, the 21 employee's rights to compensation shall be suspended until the obstruction or refusal 22 ceases, and the employee's compensation during the period of suspension may, in the 23 discretion of a hearing officer [THE BOARD] or the court determining an action 24 brought for the recovery of damages under this chapter, be forfeited. In [THE 25 BOARD IN] any case of death, a hearing officer may order [REQUIRE] an autopsy 26 at the expense of the party requesting the autopsy. An autopsy may not be held 27 without notice first being given to the widow or widower or next of kin if they reside 28 in the state or their whereabouts can be reasonably ascertained, of the time and place 29 of the autopsy and reasonable time and opportunity given the widow or widower or 30 next of kin to have a representative present to witness the autopsy. If adequate notice 31 is not given, the findings from the autopsy may be suppressed on petition [MOTION]
01 made to a hearing officer [THE BOARD] or to the superior court, as the case may be. 02 * Sec. 47. AS 23.30.095(f) is amended to read: 03 (f) All fees and other charges for medical treatment or service shall be subject 04 to regulation by the department [BOARD] but may not exceed usual, customary, and 05 reasonable fees for the treatment or service in the community in which it is rendered, 06 as determined by the director [BOARD]. An employee may not be required to pay a 07 fee or charge for medical treatment or service. The director shall propose and the 08 department [BOARD] shall adopt updated usual, customary, and reasonable medical 09 fee schedules at least once each year. 10 * Sec. 48. AS 23.30.095(h) is amended to read: 11 (h) Upon the filing with the division [BOARD] by a party in interest of an 12 application or other pleading, all parties to the proceeding must immediately, or in any 13 event within five days after service of the pleading, send to the division [BOARD] the 14 original signed reports of all physicians relating to the proceedings that [WHICH] 15 they may have in their possession or under their control, and copies of the reports shall 16 be served by the party immediately on any [THE] adverse party. There is a 17 continuing duty on all [THE] parties to [SO] file and serve all the reports during the 18 pendency of the proceeding. 19 * Sec. 49. AS 23.30.095(j) is amended to read: 20 (j) The director [BOARD] may appoint a medical services review committee, 21 or contract with an existing organization in the state or another state, to assist and 22 advise the director [BOARD] in matters involving the appropriateness, necessity, and 23 cost of medical and related services provided under this chapter. 24 * Sec. 50. AS 23.30.095(k) is amended to read: 25 (k) In the event of a medical dispute regarding determinations of causation, 26 medical stability, ability to enter a reemployment plan, degree of impairment, 27 functional capacity, the amount and efficacy of the continuance of or necessity of 28 treatment, or compensability between the employee's attending physician and the 29 employer's independent medical evaluation, the director [BOARD] may require that a 30 second independent medical evaluation be conducted by a physician or physicians 31 selected [BY THE BOARD] from a list established and maintained by the director
01 [BOARD]. The cost of an examination and medical report shall be paid by the 02 employer. The report of an independent medical examiner shall be furnished to the 03 division [BOARD] and to the parties within 14 days after the examination is 04 concluded. A person may not seek damages from an independent medical examiner 05 caused by the rendering of an opinion or providing testimony under this subsection, 06 except in the event of fraud or gross incompetence. 07 * Sec. 51. AS 23.30.100(a) is amended to read: 08 (a) Notice of an injury or death with [IN] respect to which compensation is 09 payable under this chapter shall be given within 30 days after the date of such injury 10 or death to the division [BOARD] and to the employer. 11 * Sec. 52. AS 23.30.100(c) is amended to read: 12 (c) Notice shall be given to the division [BOARD] by delivering it or sending 13 it by mail addressed to the division's [BOARD'S] office, and to the employer by 14 delivering it to the employer or by sending it by mail addressed to the employer at the 15 employer's last known place of business. If the employer is a partnership, the notice 16 may be given to a partner, or, if a corporation, the notice may be given to an agent or 17 officer upon whom legal process may be served or who is in charge of the business in 18 the place where the injury occurred. 19 * Sec. 53. AS 23.30.100(d) is amended to read: 20 (d) Failure to give notice does not bar a claim under this chapter 21 (1) if the employer, an agent of the employer in charge of the business 22 in the place where the injury occurred, or the carrier had knowledge of the injury or 23 death and a hearing officer [THE BOARD] determines that the employer or carrier 24 has not been prejudiced by failure to give notice; 25 (2) if a hearing officer [THE BOARD] excuses the failure on the 26 ground that, for some satisfactory reason, notice could not be given; 27 (3) unless objection to the failure is raised before a hearing officer 28 [THE BOARD] at the first hearing of a claim for compensation with [IN] respect to 29 the injury or death. 30 * Sec. 54. AS 23.30.105(a) is amended to read: 31 (a) The right to compensation for disability under this chapter is barred unless
01 a claim for it is filed within two years after the employee has knowledge of the nature 02 of the employee's disability and its relation to the employment and after disablement. 03 However, the maximum time for filing the claim in any event other than arising out of 04 an occupational disease shall be four years from the date of injury, and the right to 05 compensation for death is barred unless a claim [THEREFOR] is filed within one year 06 after the death, except that, if payment of compensation has been made without an 07 award on account of the injury or death, a claim may be filed within two years after 08 the date of the last payment of benefits under AS 23.30.041, 23.30.180, 23.30.185, 09 23.30.190, 23.30.200, or 23.30.215. In [IT IS ADDITIONALLY PROVIDED THAT, 10 IN] the case of latent defects pertinent to and causing compensable disability, the 11 injured employee has the full right to claim compensation as shall be determined by a 12 hearing officer [THE BOARD], time limitations notwithstanding. 13 * Sec. 55. AS 23.30.107 is amended to read: 14 Sec. 23.30.107. Release of information. (a) Upon written request, an 15 employee shall provide written authority to the employer, carrier, rehabilitation 16 specialist, or reemployment benefits administrator to obtain medical and rehabilitation 17 information relative to the employee's injury. The request must include notice of the 18 employee's right to file a petition for a protective order with the division [BOARD] 19 and must be served by certified mail to the employee's address on the notice of injury 20 or by hand delivery to the employee. This subsection may not be construed to 21 authorize an employer, carrier, rehabilitation specialist, or reemployment benefits 22 administrator to request medical or other information that is not applicable to the 23 employee's injury. 24 (b) Medical or rehabilitation records in an employee's file maintained by the 25 division [BOARD] are not public records subject to public inspection and copying 26 under AS 40.25. This subsection does not prohibit 27 (1) the reemployment benefits administrator, the division, the office of 28 the commission [BOARD], or the department from releasing medical or rehabilitation 29 records in an employee's file, without the employee's consent, to a physician providing 30 medical services under AS 23.30.095(k) or 23.30.110(g), a party to a claim filed by 31 the employee, or a governmental agency; or
01 (2) the quoting or discussing of medical or rehabilitation records 02 contained in an employee's file during a hearing on a claim for compensation [,] or in 03 a decision and order of the hearing officer or commission [BOARD]. 04 * Sec. 56. AS 23.30.108 is amended to read: 05 Sec. 23.30.108. Prehearing conferences [PREHEARINGS] on discovery 06 matters; objections to requests for release of information; sanctions for 07 noncompliance. (a) If an employee objects to a request for written authority under 08 AS 23.30.107, the employee must file a petition with the division [BOARD] seeking a 09 protective order within 14 days after service of the request. If the employee fails to file 10 a petition and fails to deliver the written authority as required by AS 23.30.107 within 11 14 days after service of the request, the employee's rights to benefits under this chapter 12 are suspended until the written authority is delivered. 13 (b) If a petition seeking a protective order is filed, the division shall 14 promptly notify the office of the commission, and the office of the commission 15 [BOARD] shall set a prehearing conference within 21 days after the filing date of the 16 petition. At a prehearing conference conducted by a hearing officer [THE 17 BOARD'S DESIGNEE], the hearing officer [BOARD'S DESIGNEE] has the 18 authority to resolve disputes concerning the written authority. If the hearing officer 19 [BOARD OR THE BOARD'S DESIGNEE] orders delivery of the written authority 20 and if the employee refuses to deliver it within 10 days after being ordered to do so, 21 the employee's rights to benefits under this chapter are suspended until the written 22 authority is delivered. During any period of suspension under this subsection, the 23 employee's benefits under this chapter are forfeited unless a hearing officer [THE 24 BOARD], or the court determining an action brought for the recovery of damages 25 under this chapter, determines that good cause existed for the refusal to provide the 26 written authority. 27 (c) At a prehearing conference on discovery matters conducted by a hearing 28 officer [THE BOARD'S DESIGNEE], the hearing officer [BOARD'S DESIGNEE] 29 shall direct parties to sign releases or produce documents, or both, if the parties 30 present releases or requests for documents that are likely to lead to admissible 31 evidence relative to an employee's injury. If a party refuses to comply with an order by
01 a hearing officer [THE BOARD'S DESIGNEE OR THE BOARD] concerning 02 discovery matters, a hearing officer [THE BOARD] may impose appropriate 03 sanctions in addition to any forfeiture of benefits, including dismissing the party's 04 claim, petition, or defense. A party may petition the commission for expedited 05 review of an order of a hearing officer on discovery matters within seven days 06 after the date of service of the challenged order, and a party opposing the petition 07 shall respond within seven days after service of the petition. The commission 08 shall determine whether to grant or deny a petition for review within 10 days 09 after a response is due. If [A DISCOVERY DISPUTE COMES BEFORE] the 10 commission grants a petition [BOARD] for expedited review of a discovery 11 determination by a hearing officer [THE BOARD'S DESIGNEE], the commission 12 [BOARD] may not consider any evidence or argument that was not presented to the 13 hearing officer [BOARD'S DESIGNEE], but shall determine the issue solely on the 14 basis of the written record. The decision by the commission [BOARD] on a discovery 15 dispute shall be made within 30 days. The commission [BOARD] shall uphold a 16 hearing officer's [THE DESIGNEE'S] decision except when the hearing officer's 17 [BOARD'S DESIGNEE'S] determination is an abuse of discretion. 18 * Sec. 57. AS 23.30.110 is amended to read: 19 Sec. 23.30.110. Procedure on claims and petitions. (a) Subject to the 20 provisions of AS 23.30.105, a claim for or petition relating to compensation or 21 benefits or both may be filed with the division [BOARD] in accordance with its 22 regulations at any time after the first seven days of disability following an injury, or at 23 any time after death, and a hearing officer [THE BOARD] may hear and determine 24 all questions with [IN] respect to the claim or petition. 25 (b) Within 10 days after a claim or petition is filed, the division [BOARD], in 26 accordance with its regulations, shall notify the opposing party, employer, and any 27 other person, other than the claimant or petitioner, whom the director [BOARD] 28 considers an interested party that a claim or petition has been filed. The notice may 29 be served personally [UPON THE EMPLOYER OR OTHER PERSON,] or sent by 30 certified [REGISTERED] mail. 31 (c) Before a hearing is scheduled, the party seeking a hearing shall file with
01 the office of the commission a request for a hearing together with an affidavit stating 02 that the party has completed necessary discovery, has obtained necessary evidence, 03 and is prepared for the hearing. An opposing party shall have 10 days after the hearing 04 request is filed to file a response. If a party opposes the hearing request, a hearing 05 officer [THE BOARD OR A BOARD DESIGNEE] shall, within 30 days after [OF] 06 the filing of the opposition, conduct a pre-hearing conference, plan the timing and 07 sequence of discovery and other preliminary matters, and set a reasonable hearing 08 date. If opposition is not filed, a hearing officer designated by the office of the 09 commission shall schedule a hearing not [HEARING SHALL BE SCHEDULED 10 NO] later than 60 days after the receipt of the hearing request. The hearing officer 11 [BOARD] shall give each party at least 10 days' notice of the hearing, either 12 personally or by certified mail. After a hearing has been scheduled, the parties may 13 not stipulate to change the hearing date or to cancel, postpone, or continue the hearing, 14 except for good cause as determined by the hearing officer [BOARD]. After 15 completion of the hearing, the hearing officer [BOARD] shall close the hearing 16 record. If a settlement agreement is reached by the parties less than 14 days before the 17 hearing, the parties shall appear at the time of the scheduled hearing to state the terms 18 of the settlement agreement. Within 30 days after the hearing record closes, the 19 hearing officer [BOARD] shall file the hearing officer's [ITS] decision. If the 20 employer controverts a claim on a director-prescribed [BOARD-PRESCRIBED] 21 controversion notice and the employee does not request a hearing within two years 22 following the filing of the controversion notice, the claim is denied. 23 (d) At the hearing, the parties [CLAIMANT AND THE EMPLOYER] may 24 each present evidence with [IN] respect to the claim or petition and may be 25 represented by any person authorized in writing for that purpose. 26 (e) The order rejecting the claim or petition, or making the award, referred to 27 in this chapter as a compensation order, shall be filed in the office of the commission 28 [BOARD], and a copy of it shall be sent by certified [REGISTERED] mail to the 29 parties [CLAIMANT AND TO THE EMPLOYER] at the last known address of each. 30 (f) An award of compensation for disability or an order dismissing a claim 31 may be made after the death of an injured employee.
01 (g) An injured employee claiming or entitled to compensation shall submit to 02 the physical examination by a duly qualified physician that a hearing officer 03 [WHICH THE BOARD] may require. The place or places shall be reasonably 04 convenient for the employee. The physician or physicians as the employee, employer, 05 or carrier may select and pay for may participate in an examination if the employee, 06 employer, or carrier so requests. Proceedings shall be suspended and no compensation 07 may be payable for a period during which the employee refuses to submit to 08 examination. 09 (h) The filing of a hearing request under (c) of this section suspends the 10 running of the two-year time period specified in (c) of this section. However, if the 11 employee subsequently requests a continuance of the hearing and the request is 12 granted [APPROVED BY THE BOARD], the granting of the continuance renders the 13 request for hearing inoperative, and the two-year time period specified in (c) of this 14 section continues to run again from the date of a hearing officer's [THE BOARD'S] 15 notice to the employee of [THE BOARD'S GRANTING OF] the continuance and of 16 its effect. If the employee fails to again request a hearing before the conclusion of the 17 two-year time period in (c) of this section, the claim is denied. 18 * Sec. 58. AS 23.30.110 is amended by adding new subsections to read: 19 (i) An order dismissing a claim in whole or in part may be made before a 20 hearing on the merits of the claim when (1) the claim requests relief that cannot be 21 granted under this chapter; (2) there is a lack of jurisdiction over the subject matter of 22 the claim or the person under this chapter; (3) division process or service of process 23 was insufficient; (4) the claim has not been prosecuted or a hearing was not requested 24 within the time allowed in (c) of this section; or (5) the claim is barred by a statute of 25 limitation. If, within 60 days after service of an order dismissing a claim under (1) - 26 (3) of this subsection, the defects stated in the order are cured, the dismissal may be 27 vacated. Otherwise, the order of dismissal is a final compensation order. 28 (j) At any time, a party may petition for a summary decision on all or part of a 29 claim. The hearing officer shall grant the petition if (1) the hearing officer finds all 30 reasonable discovery has been made on the issues presented; and (2) the record shows 31 that there is no genuine issue of any material fact and that the petitioner is entitled to a
01 decision as a matter of law. The hearing officer may file a compensation order in 02 favor of the petitioner if the summary decision adjudicates all issues in the claim with 03 respect to the petitioner. 04 * Sec. 59. AS 23.30 is amended by adding a new section to read: 05 Sec. 23.30.112. Hearing officers. (a) Unless otherwise provided in this 06 chapter, hearings on claims and petitions shall be conducted by a hearing officer 07 employed by the commission. A hearing officer shall be 08 (1) licensed to practice law in this state at the time of appointment and 09 have three years experience in this state in the field of workers' compensation or in a 10 similar field of practice; 11 (2) appointed to the partially exempt service under AS 39.25.120 and 12 compensated at Range 24 of the schedule set out in AS 39.27.011(a), but is not a 13 public employee for purposes of AS 23.40; and 14 (3) impartial and unbiased in all proceedings, hold fair and impartial 15 hearings on claims and petitions arising under this chapter, and issue written decisions 16 and orders. 17 (b) A hearing officer may 18 (1) for the purposes of this chapter, subpoena witnesses, administer or 19 cause to be administered oaths, and order production of parts of the books and records 20 of the parties to a proceeding or other records, documents, or papers that relate to 21 questions in dispute; the superior court, on application of the hearing officer under 22 AS 44.62.590, shall enforce the attendance and testimony of witnesses and the 23 production and examination of books, papers, and records; 24 (2) direct a physician or hospital rendering medical treatment or 25 service under this chapter to furnish to the division periodic reports of treatment or 26 services on forms prescribed by the division; 27 (3) arrange to have hearings held by the commission, officer, or 28 tribunal having authority to hear cases arising under the workers' compensation law of 29 any other state, of the District of Columbia, or of any territory of the United States, 30 when a proceeding in this state so requires; the testimony and proceedings at the 31 hearing shall be reported to the commission and are a part of the record in the case;
01 evidence taken at the hearing is subject to rebuttal upon final hearing before the 02 hearing officer. 03 (c) The hearing officer, in conducting a hearing under AS 23.30.110, is not 04 bound by common law or statutory rules of evidence or by technical or formal rules of 05 procedure, except as provided by this chapter and the regulations of the commission. 06 The hearing may be conducted in the manner designed to best ascertain the rights of 07 the parties. In proceedings before hearing officers, the administrative adjudication 08 procedures of AS 44.62 (Administrative Procedure Act) do not apply, except that 09 AS 44.62.410(b), 44.62.450(c), 44.62.460(a) - (d), 44.62.470, 44.62.480, 44.62.510, 10 and 44.62.590 shall apply to proceedings under this chapter. Declarations of a 11 deceased employee concerning the injury with respect to which the investigation or 12 inquiry is being made or the hearing conducted shall be received in evidence and are, 13 if corroborated by other evidence, sufficient to establish the injury. 14 (d) The hearing officer shall conduct hearings and perform all other functions 15 in an impartial manner with due regard for the rights of all parties and the facts and the 16 law, and consistent with the orderly and prompt dispatch of proceedings under this 17 chapter. A hearing officer shall voluntarily seek disqualification and withdraw from a 18 case in which the hearing officer cannot accord a fair and impartial hearing or 19 consideration. A request for disqualification of a hearing officer for bias or partiality 20 shall be determined by the hearing officer concerned. Except as otherwise permitted 21 by law, hearing officers may not engage in interviews with or hear evidence or 22 argument from, a party directly or indirectly, except upon opportunity for all parties to 23 be present. Copies of all communications to hearing officers shall be served on all 24 other parties. 25 (e) All testimony given during a hearing before a hearing officer shall be 26 recorded but need not be transcribed unless further review is initiated. Hearings 27 before a hearing officer shall be open to the public. 28 * Sec. 60. AS 23.30.115 is amended to read: 29 Sec. 23.30.115. Attendance and fees of witnesses. (a) A person is not 30 required to attend as a witness in a hearing [PROCEEDING] before the commission 31 or hearing officer [BOARD] at a place more than 100 miles from the person's place
01 of residence, unless the person's lawful mileage and fee for one day's attendance is 02 first paid or tendered to the person; but the testimony of a witness may be taken by 03 deposition or interrogatories according to the Rules of Civil Procedure. 04 (b) A witness summoned to testify in a hearing [PROCEEDING] before the 05 commission or hearing officer [BOARD] or whose deposition is taken shall receive 06 the same fees and mileage as a witness in the superior court. The commission clerk 07 may issue subpoenas and subpoenas duces tecum to summon a witness to testify 08 in a hearing or deposition and to produce records. The superior court shall 09 enforce the subpoenas on application by the commission in the manner provided 10 in AS 44.62.590. 11 * Sec. 61. AS 23.30.120(b) is amended to read: 12 (b) If delay in giving notice is excused by the hearing officer [BOARD] 13 under AS 23.30.100(d)(2), the burden of proof of the validity of the claim shifts to the 14 employee, notwithstanding the provisions of (a) of this section. 15 * Sec. 62. AS 23.30.122 is repealed and reenacted to read: 16 Sec. 23.30.122. Credibility of witnesses. The hearing officer has the sole 17 power to determine the credibility of testimony presented by a witness who appears in 18 a hearing. When credibility is disputed, the hearing officer's determination of 19 credibility must be supported by specific findings. 20 * Sec. 63. AS 23.30 is amended by adding a new section to read: 21 Sec. 23.30.124. Reconsideration of compensation order. (a) A hearing 22 officer may order a reconsideration of all or part of a compensation order on the 23 hearing officer's own motion or on petition of a party. A petition for reconsideration 24 must be filed with the office of the commission within 15 days after mailing of the 25 compensation order. The power to order reconsideration expires 30 days after the 26 mailing of a compensation order. If an order of reconsideration is not filed with the 27 office of the commission within the time allowed for ordering reconsideration, the 28 petition is considered denied. 29 (b) If reconsideration is ordered under (a) of this section, the compensation 30 order under reconsideration is stayed until the decision on reconsideration is filed. 31 The case may be reconsidered by the hearing officer on of all the pertinent parts of the
01 record and the additional arguments that are permitted by the hearing officer. A 02 written decision on reconsideration shall be filed with the commission within 30 days 03 after the date the order of reconsideration was filed. 04 * Sec. 64. AS 23.30.125 is repealed and reenacted to read: 05 Sec. 23.30.125. Administrative review of compensation order. (a) A 06 compensation order becomes effective when filed with the office of the commission as 07 provided in AS 23.30.110, and, unless proceedings to reconsider, suspend, or set aside 08 the order are instituted as provided in this chapter, the order becomes final on the 31st 09 day after it is filed. 10 (b) Notwithstanding other provisions of law, a decision or order of a hearing 11 officer is subject to review by the commission as provided in this chapter. 12 (c) If a compensation order is not in accordance with law or fact, the order 13 may be suspended or set aside, in whole or in part, through proceedings in the 14 commission brought by a party in interest against all other parties to the proceedings 15 before the hearing officer. The payment of the amounts required by an award may not 16 be stayed pending a final decision in the proceeding unless, upon application for a 17 stay, the commission, on hearing, after not less than three days' notice to the parties in 18 interest and the director, allows the stay of payment, in whole or in part, where the 19 party filing the application would otherwise suffer irreparable damage. The order of 20 the commission allowing a stay must contain a specific finding, based upon evidence 21 submitted to the commission and identified by reference to the evidence, that 22 irreparable damage would result to the party applying for a stay and specifying the 23 nature of the damage. 24 (d) Proceedings for reconsidering, suspending, setting aside, or enforcing a 25 compensation order, whether rejecting a claim or making an award, may not be 26 instituted, except as provided in this chapter. 27 * Sec. 65. AS 23.30 is amended by adding new sections to read: 28 Sec. 23.30.126. Review of director's decision. (a) A decision by the director 29 that affects a right, privilege, benefit, or duty that is imposed or conferred under this 30 chapter is subject to review by the commission. A decision by the director becomes 31 effective when filed with the division, and, unless proceedings to suspend or set aside
01 the decision are instituted as provided in this section, the decision becomes final on the 02 31st day after it is filed. 03 (b) If a decision of the director is not in accordance with law or fact, the 04 decision may be suspended or set aside, in whole or in part, through proceedings in the 05 commission brought by a party in interest against the director and all other parties to 06 the proceedings. The decision may not be stayed pending final decision in the 07 proceeding unless, upon application for a stay, the commission, on hearing, after not 08 less than three days notice to the parties in interest and the director, allows the stay, in 09 whole or in part, where irreparable damage would otherwise result. The order of the 10 commission allowing the stay shall contain a specific finding, based upon evidence 11 submitted to the commission and identified by reference to it, that irreparable damage 12 would result to the party applying for a stay, and specifying the nature of the damage. 13 (c) Proceedings for suspending, setting aside, or enforcing a director's decision 14 or determination may not be instituted except as provided in this chapter. 15 Sec. 23.30.127. Appeals to commission. (a) A party in interest may appeal a 16 compensation order issued by a hearing officer to the commission within 30 days after 17 the compensation order is filed with the office of the commission under AS 23.30.110. 18 The director may intervene in an appeal. If a party in interest is not represented by 19 counsel and the compensation order concerns an unsettled question of law, the director 20 may file an appeal on behalf of the unrepresented party. 21 (b) A party in interest may appeal a decision of the director to the commission 22 within 30 days after the decision is filed with the division. 23 (c) An appeal shall be initiated by filing with the office of the commission 24 (1) a signed notice of appeal specifying the compensation order 25 appealed from; 26 (2) a statement of the grounds upon which the appeal is taken; and 27 (3) other materials the commission may by regulation require. 28 (d) A cross-appeal may be initiated by filing with the office of the commission 29 a signed notice of cross-appeal within 30 days after the decision is filed or within 15 30 days after service of notice of an appeal, whichever is later. The notice of cross- 31 appeal shall specify the compensation order appealed from and the grounds upon
01 which the cross-appeal is taken. 02 (e) The office of the commission may charge a fee not to exceed $100, for 03 filing appeals and cross-appeals, except that the office of the commission may not 04 charge a fee if the appellant is the state or a political subdivision of the state. The 05 commission may require an appellant to pay the costs of the transcript of hearing and 06 the preparation of the record on appeal. The commission may require cross-appellants 07 or intervenors to share in the costs. 08 (f) If a request for reconsideration of a hearing officer's decision is timely filed 09 with the office of the commission, the notice of appeal must be filed within 30 days 10 after the reconsideration decision is mailed to the parties, or the date the request for 11 reconsideration is considered denied, in the absence of any action on the request, 12 whichever is earlier. 13 (g) The commission may require written briefs and make other rules and 14 orders to facilitate the business of the commission and advance the prompt, fair, and 15 just disposition of appeals. 16 Sec. 23.30.128. Commission proceedings. (a) The commission may review 17 de novo all discretionary actions, findings of fact, and conclusions of law by the 18 hearing officer or the director in hearing, determining or otherwise acting on any 19 compensation claim or petition. A hearing officer's findings regarding the credibility 20 of testimony of a witness who appeared in the hearing is binding on the commission, 21 but all other findings by a hearing officer, including the weight to be accorded medical 22 testimony and reports, may be set aside by the commission. The findings of the 23 hearing officer, if not set aside by the commission, are conclusive. 24 (b) The matter on appeal shall be decided by the commission on the record 25 made before the director or hearing officer, a transcript or recording of the 26 proceedings before the director or hearing officer, and oral argument and written briefs 27 allowed by the commission. Except as provided in (c) of this section, new or 28 additional evidence may not be received with respect to the appeal. 29 (c) The commission may hold hearings and receive evidence on applications 30 for (1) stays under AS 23.30.125; (2) attorney fees and costs of appeal; (3) waiver of 31 fees by indigent appellants; or (4) dismissal of appeals for failure to prosecute or upon
01 settlement. The commission may rely on new or additional evidence presented during 02 the hearing in making its decision on the application. 03 (d) The commission may affirm, reverse, or modify a decision or order upon 04 review and issue other orders as appropriate. The commission may remand matters it 05 determines were improperly, incompletely, or otherwise insufficiently developed. The 06 commission may remand for further proceedings and appropriate action with or 07 without relinquishing the commission's jurisdiction of the appeal. The administrative 08 adjudication procedures of AS 44.62 (Administrative Procedure Act) do not apply to 09 the proceedings of the commission. 10 (e) Within 90 days after written briefing on the appeal is completed or oral 11 argument is held, whichever is later, the commission shall issue a decision in writing. 12 The decision must contain a concise statement of reasons for the decision, including 13 findings of fact, if required, and conclusions of law. The commission shall serve each 14 party and the director with a copy of the decision. Appeals may be expedited for good 15 cause by the commission. Unless reconsideration is ordered under (f) of this section, a 16 decision under this subsection is the final commission decision. 17 (f) A party or the director may request reconsideration of a decision issued 18 under (e) of this section within 30 days after the date of service shown in the 19 certificate of service of the decision. The request must state specific grounds for 20 reconsideration. Reconsideration may be granted if, in reaching the decision, the 21 commission (1) overlooked, misapplied, or failed to consider a statute, regulation, 22 court or administrative decision, or legal principle directly controlling; (2) overlooked 23 or misconceived a material fact; (3) misconceived a material question in the case; or 24 (4) applied law in the ruling that has subsequently changed. The commission may 25 issue an order for reconsideration of all or part of the decision upon request of a party 26 or the director. Reconsideration is based on the record, unless the commission allows 27 additional argument. The power to order reconsideration expires 60 days after the 28 date of service, as shown on the certificate of service, of a decision issued under (e) of 29 this section. If the commission does not issue an order for reconsideration within the 30 time allowed for ordering reconsideration, a request for reconsideration is considered 31 denied. If reconsideration is ordered, the commission shall issued a decision within 30
01 days after the close of the record on reconsideration. The commission shall serve each 02 party in the case with a copy of the decision upon reconsideration. The decision upon 03 reconsideration is the final commission decision. 04 (g) A decision of the commission becomes final on the 05 (1) 31st day after the date of service of a decision if reconsideration is 06 not requested; or 07 (2) 61st day after the date of service of a decision if reconsideration is 08 requested but an order for reconsideration is not issued; or 09 (3) date of service of the commission decision upon reconsideration 10 under (f) of this section if reconsideration is requested and an order for reconsideration 11 is issued. 12 Sec. 23.30.129. Judicial review of commission orders. (a) Notwithstanding 13 the provisions of AS 44.62.560, orders of the commission may not be appealed to the 14 superior court. Consistent with AS 22.05.010(b), final decisions of the commission 15 may be appealed to the supreme court, and other orders may be reviewed by the 16 supreme court as provided by the Alaska Rules of Appellate Procedure. 17 (b) A finding by the commission concerning the weight to be accorded a 18 witness's testimony, including medical testimony and reports, is conclusive even if the 19 evidence is conflicting or susceptible to contrary conclusions. The commission's 20 findings of fact may be reversed on appeal if not supported by substantial evidence in 21 light of the whole record. 22 * Sec. 66. AS 23.30.130 is amended to read: 23 Sec. 23.30.130. Modification of awards. (a) A party in interest or the 24 director may petition to modify a compensation order [UPON ITS OWN 25 INITIATIVE, OR UPON THE APPLICATION OF ANY PARTY IN INTEREST] on 26 the ground of a change in conditions, including, for the purposes of AS 23.30.175, a 27 change in residence, or because of a mistake in a [ITS] determination of a material 28 fact. A hearing officer [, THE BOARD] may, before one year after the date of the 29 last payment of compensation benefits under AS 23.30.180, 23.30.185, 23.30.190, 30 23.30.200, or 23.30.215, whether or not a compensation order has been issued, or 31 before one year after the rejection of a claim, act on the petition and review a
01 compensation case under the procedure prescribed with [IN] respect to [OF] claims in 02 AS 23.30.110. Under AS 23.30.110, a hearing officer [THE BOARD] may issue a 03 new compensation order that [WHICH] terminates, continues, reinstates, increases, or 04 decreases the compensation, or award compensation. 05 (b) A new order does not affect compensation previously paid, except that an 06 award increasing the compensation rate may be made effective from the date of the 07 injury, and, if part of the compensation due or to become due is unpaid, an award 08 decreasing the compensation rate may be made effective from the date of the injury, 09 and payment made earlier in excess of the decreased rate shall be deducted from the 10 unpaid compensation, in the manner the hearing officer [BOARD] determines. 11 * Sec. 67. AS 23.30.135 is amended to read: 12 Sec. 23.30.135. Procedure before the division [BOARD]. (a) The director 13 in [IN] making a decision on an investigation or inquiry or conducting a hearing, 14 [THE BOARD] is not bound by common law or statutory rules of evidence or by 15 technical or formal rules of procedure, except as provided by this chapter. The 16 director [BOARD] may make an [ITS] investigation or inquiry or conduct a [ITS] 17 hearing in the manner that [BY WHICH IT] may best ascertain the rights of the 18 parties. For purposes of investigation under AS 23.30.011, 23.30.040, 23.30.075, 19 23.30.080, 23.30.085, 23.30.090, 23.30.140, 23.30.155(i), 23.30.155(k), 20 23.30.155(m), 23.30.170, and 23.30.240 the director may subpoena witnesses, 21 administer or cause to be administered oaths, and may examine or cause to be 22 examined books, papers and records relating to the questions under 23 investigation. The superior court shall enforce the subpoenas on application by 24 the director in the manner provided in AS 44.62.590. Declarations of a deceased 25 employee concerning the injury with [IN] respect to which the investigation or inquiry 26 is being made or the hearing conducted shall be received in evidence and are, if 27 corroborated by other evidence, sufficient to establish the injury. 28 (b) All testimony given during a hearing before the director [BOARD] shall 29 be recorded, but need not be transcribed unless further review is initiated. Hearings 30 before the director [BOARD] shall be open to the public. 31 * Sec. 68. AS 23.30.140 is amended to read:
01 Sec. 23.30.140. Appointment of guardian by court. The director 02 [BOARD] may require the appointment of a guardian or other representative by a 03 competent court for any person who is mentally incompetent or a minor to receive 04 compensation payable to the person under this chapter and to exercise the powers 05 granted to or to perform the duties required of the person under this chapter. If the 06 director [BOARD] does not require the appointment of a guardian to receive the 07 compensation of a minor, appointment for this purpose is not necessary. 08 * Sec. 69. AS 23.30.145(a) is amended to read: 09 (a) Fees for legal services rendered with [IN] respect to a claim are not valid 10 unless approved by the hearing officer [BOARD, AND THE FEES MAY NOT BE 11 LESS THAN 25 PER CENT ON THE FIRST $1,000 OF COMPENSATION OR 12 PART OF THE FIRST $1,000 OF COMPENSATION, AND 10 PER CENT OF ALL 13 SUMS IN EXCESS OF $1,000 OF COMPENSATION]. When [THE BOARD 14 ADVISES THAT] a claim has been controverted, in whole or in part, [THE BOARD 15 MAY DIRECT THAT THE] fees for legal services may be paid by the employer or 16 carrier in addition to compensation awarded; the fees may be allowed only on the 17 amount of compensation controverted and awarded. When [THE BOARD ADVISES 18 THAT] a claim has not been controverted, but [FURTHER ADVISES THAT] bona 19 fide legal services have been rendered with [IN] respect to the claim, then the hearing 20 officer [BOARD] shall direct the payment of the fees out of the compensation 21 awarded. In determining the amount of fees the hearing officer [BOARD] shall take 22 into consideration the nature, length, and complexity of the services performed, 23 transportation charges, and the benefits resulting from the services to the 24 compensation beneficiaries, but a fee may not be less than 25 percent of the first 25 $1,000 of controverted compensation awarded and 10 percent of controverted 26 compensation in excess of $1,000. 27 * Sec. 70. AS 23.30.145(b) is amended to read: 28 (b) If an employer fails to file timely notice of controversy or fails to pay 29 compensation or medical and related benefits within 15 days after it becomes due or 30 otherwise resists the payment of compensation or medical and related benefits and if 31 the claimant has employed an attorney in the successful prosecution of the claim, a
01 hearing officer [THE BOARD] shall make an award to reimburse the claimant for the 02 costs in the proceedings, including [A] reasonable attorney fees [FEE]. The award is 03 in addition to the compensation or medical and related benefits ordered. 04 * Sec. 71. AS 23.30.155(a) is amended to read: 05 (a) Compensation under this chapter shall be paid periodically, promptly, and 06 directly to the person entitled to it, without an award, except where liability to pay 07 compensation is controverted by the employer. To controvert a claim, the employer 08 must file a notice, on a form prescribed by the director [BOARD], stating 09 (1) that the right of the employee to compensation is controverted; 10 (2) the name of the employee; 11 (3) the name of the employer; 12 (4) the date of the alleged injury or death; and 13 (5) the type of compensation and all grounds upon which the right to 14 compensation is controverted. 15 * Sec. 72. AS 23.30.155(b) is amended to read: 16 (b) The first installment of compensation becomes due on the 14th day after 17 the employer has knowledge of the injury or death. On this date all compensation then 18 due shall be paid. Subsequent compensation shall be paid in installments, every 14 19 days, except where a hearing officer [THE BOARD] determines that payment in 20 installments should be made monthly or at some other period. 21 * Sec. 73. AS 23.30.155(c) is amended to read: 22 (c) The insurer or adjuster shall notify the division [BOARD] and the 23 employee on a form prescribed by the director [BOARD] that the payment of 24 compensation has begun or has been increased, decreased, suspended, terminated, 25 resumed, or changed in type. An initial report shall be filed with the division 26 [BOARD] and sent to the employee within 28 days after the date of issuing the first 27 payment of compensation. If at any time 21 days or more pass and no compensation 28 payment is issued, a report notifying the division [BOARD] and the employee of the 29 termination or suspension of compensation shall be filed with the division [BOARD] 30 and sent to the employee within 28 days after the date the last compensation payment 31 was issued. A report shall also be filed with the division [BOARD] and sent to the
01 employee within 28 days after the date of issuing a payment increasing, decreasing, 02 resuming, or changing the type of compensation paid. If the division [BOARD] and 03 the employee are not notified within the 28 days prescribed by this subsection for 04 reporting, the insurer or adjuster shall pay a civil penalty of $100 for the first day plus 05 $10 for each day after the first day [THEREAFTER] that the notice was not given. 06 Total penalties under this subsection may not exceed $1,000 for a failure to file a 07 required report. Penalties assessed under this subsection are eligible for reduction 08 under (m) of this section. A penalty assessed under this subsection after penalties have 09 been reduced under (m) of this section shall be increased by 25 percent and shall bear 10 interest at the rate established under AS 45.45.010. 11 * Sec. 74. AS 23.30.155(d) is amended to read: 12 (d) If the employer controverts the right to compensation, the employer shall 13 file with the division [BOARD] and send to the employee a notice of controversion on 14 or before the 21st day after the employer has knowledge of the alleged injury or death. 15 If the employer controverts the right to compensation after payments have begun, the 16 employer shall file with the division [BOARD] and send to the employee a notice of 17 controversion within seven days after an installment of compensation payable without 18 an award is due. When payment of temporary disability benefits is controverted solely 19 on the grounds that another employer or another insurer of the same employer may be 20 responsible for all or a portion of the benefits, the most recent employer or insurer 21 who is party to the claim and who may be liable shall make the payments during the 22 pendency of the dispute. When a final determination of liability is made, any 23 reimbursement required, including interest at the statutory rate, and all costs and 24 attorney [ATTORNEYS'] fees incurred by the prevailing employer, shall be made 25 within 14 days after [OF] the determination. 26 * Sec. 75. AS 23.30.155(e) is amended to read: 27 (e) If any installment of compensation payable without an award is not paid 28 within seven days after it becomes due, as provided in (b) of this section, there shall be 29 added to the unpaid installment an amount equal to 25 percent of it. This additional 30 amount shall be paid at the same time as, and in addition to, the installment, unless 31 notice is filed under (d) of this section or unless the nonpayment is excused by the a
01 hearing officer [THE BOARD] after a showing by the employer that, owing to 02 conditions over which the employer had no control, the installment could not be paid 03 within the period prescribed for the payment. 04 * Sec. 76. AS 23.30.155(f) is amended to read: 05 (f) If compensation payable under the terms of an award is not paid within 14 06 days after it becomes due, there shall be added to that unpaid compensation an amount 07 equal to 25 percent of it, which shall be paid at the same time as, but in addition to, the 08 compensation, unless review of the compensation order making the award is had as 09 provided in AS 23.30.125 and payment is stayed by an order of the commission 10 [INTERLOCUTORY INJUNCTION STAYING PAYMENTS IS ALLOWED BY 11 THE COURT]. 12 * Sec. 77. AS 23.30.155(h) is amended to read: 13 (h) The director may initiate an investigation, have a medical examination 14 performed at the division's expense, or file a petition on a disputed matter for 15 hearing by a hearing officer [BOARD MAY UPON ITS OWN INITIATIVE] at any 16 time in a case in which payments are being made with or without an award, where 17 right to compensation is controverted, or where payments of compensation have been 18 increased, reduced, terminated, changed, or suspended, upon receipt of notice from a 19 person entitled to compensation, or from the employer, that the right to compensation 20 is controverted, or that payments of compensation have been increased, reduced, 21 terminated, changed, or suspended. The director may then [, MAKE THE 22 INVESTIGATIONS, CAUSE THE MEDICAL EXAMINATIONS TO BE MADE, 23 OR HOLD THE HEARINGS, AND] take the further action considered necessary to 24 [WHICH IT CONSIDERS WILL] properly protect the rights of all parties. 25 * Sec. 78. AS 23.30.155(i) is amended to read: 26 (i) When the director [BOARD] considers it advisable, the director [IT] may 27 require an employer to make a deposit with the Department of Revenue to secure the 28 prompt and convenient payment of the compensation, and payments from the deposit 29 upon an award shall be made upon order of the director [BOARD]. 30 * Sec. 79. AS 23.30.155(j) is amended to read: 31 (j) If an employer has made advance payments or overpayments of
01 compensation, the employer is entitled to be reimbursed by withholding up to 20 02 percent out of each unpaid installment or installments of compensation due. More 03 than 20 percent of unpaid installments of compensation due may be withheld from an 04 employee only on approval of a hearing officer [THE BOARD]. 05 * Sec. 80. AS 23.30.155(k) is amended to read: 06 (k) An injured employee [,] or, in case of death, the employee's dependents or 07 personal representative [,] shall give receipts for payment of compensation to the 08 employer paying the compensation, [IT] and the employer shall produce the receipts 09 [THEM] for inspection by the director [BOARD], whenever required. 10 * Sec. 81. AS 23.30.155(m) is amended to read: 11 (m) On or before March 1 of each year, the insurer or adjuster shall file a 12 verified annual report on a form prescribed by the director [BOARD] stating the total 13 amount of all compensation by type, the number of claims received and the percentage 14 controverted, medical, and related benefits, vocational rehabilitation expenses, legal 15 fees, including a separate total of fees paid to attorneys and fees paid for the other 16 costs of litigation, and penalties paid on all claims during the preceding calendar year. 17 If the annual report is timely and complete when received by the division [BOARD] 18 and provides accurate information about each category of payments, the director 19 [COMMISSIONER] shall review the timeliness of the insurer's or adjuster's reports 20 filed during the preceding year under (c) of this section. If, during the preceding year, 21 the insurer or adjuster filed at least 99 percent of the reports on time, the penalties 22 assessed under (c) of this section shall be waived. If, during the preceding year, the 23 insurer or adjuster filed at least 97 percent of the reports on time, 75 percent of the 24 penalties assessed under (c) of this section shall be waived. If, during the preceding 25 year, the insurer or adjuster filed 95 percent of the reports on time, 50 percent of the 26 penalties assessed under (c) of this section shall be waived. If, during the preceding 27 year, the insurer's or adjuster's reports have not been filed on time at least 95 percent 28 of the time, none of the penalties assessed under (c) of this section shall be waived. 29 The penalties that are not waived are due and payable when the insurer or adjuster 30 receives notification from the director [COMMISSIONER] regarding the timeliness 31 of the reports. If the annual report is not filed by March 1 of each year, the insurer or
01 adjuster shall pay a civil penalty of $100 for the first day the annual report is late [,] 02 and $10 for each additional day the report is late. If the annual report is incomplete 03 when filed, the insurer or adjuster shall pay a civil penalty of $1,000. 04 * Sec. 82. AS 23.30.155(o) is amended to read: 05 (o) The director [BOARD] shall promptly notify the division of insurance if a 06 hearing officer [THE BOARD] determines that the employer's insurer has frivolously 07 or unfairly controverted compensation due under this chapter. After receiving notice 08 from the director [BOARD], the division of insurance shall determine if the insurer 09 has committed an unfair claim settlement practice under AS 21.36.125. 10 * Sec. 83. AS 23.30.170(a) is amended to read: 11 (a) In case of default by the employer in the payment of compensation due 12 under an award of compensation for a period of 30 days after the compensation is due, 13 the person to whom the compensation is payable may, within one year after the 14 default, file a petition with the division [APPLY TO THE BOARD MAKING THE 15 COMPENSATION ORDER] for a supplementary order declaring the amount of the 16 default. After completion of any investigation the director considers necessary, 17 and upon [,] notice [,] and hearing, as provided in AS 23.30.110, a hearing officer 18 may [THE BOARD SHALL] make a supplementary order declaring the amount of the 19 default. The order shall be filed in the same manner as the compensation order. 20 * Sec. 84. AS 23.30.170(b) is amended to read: 21 (b) If the payment in default is an installment of the award, a hearing officer 22 has [THE BOARD MAY, IN ITS] discretion to [,] declare the whole of the award as 23 the amount in default. The petitioner [APPLICANT] may file a certified copy of the 24 supplementary order with the clerk of the superior court. The supplementary order is 25 final. The court shall, upon the filing of the copy, enter judgment for the amount 26 declared in default by the supplementary order if it is in accordance with law. Any 27 time after a supplementary order is filed [BY THE BOARD], the attorney general, 28 when requested to do so by the director [COMMISSIONER], shall take appropriate 29 action to ensure [ASSURE] collection of the defaulted payments. 30 * Sec. 85. AS 23.30.175(a) is amended to read: 31 (a) The weekly rate of compensation for disability or death may not exceed
01 the maximum compensation rate, may not be less than 22 percent of the maximum 02 compensation rate, and initially may not be less than $110. However, if a hearing 03 officer [THE BOARD] determines that the employee's spendable weekly wages are 04 less than $110 a week as computed under AS 23.30.220, or less than 22 percent of the 05 maximum compensation rate a week in the case of an employee who has furnished 06 documentary proof of the employee's wages, it shall issue an order adjusting the 07 weekly rate of compensation to a rate equal to the employee's spendable weekly 08 wages. If the employer can verify that the employee's spendable weekly wages are 09 less than 22 percent of the maximum compensation rate, the employer may adjust the 10 weekly rate of compensation to a rate equal to the employee's spendable weekly wages 11 without an order of a hearing officer [THE BOARD]. If the employee's spendable 12 weekly wages are greater than 22 percent of the maximum compensation rate, but 80 13 percent of the employee's spendable weekly wages is less than 22 percent of the 14 maximum compensation rate, the employee's weekly rate of compensation shall be 22 15 percent of the maximum compensation rate. Prior payments made in excess of the 16 adjusted rate shall be deducted from the unpaid compensation in the manner a hearing 17 officer [THE BOARD] determines. In any case, the employer shall pay timely 18 compensation. In this subsection, "maximum compensation rate" means 120 percent 19 of the average weekly wage, calculated under (d) of this section, applicable on the date 20 of injury of the employee. 21 * Sec. 86. AS 23.30.175(b) is amended to read: 22 (b) The following rules apply to benefits payable to recipients not residing in 23 the state at the time compensation benefits are payable: 24 (1) the weekly rate of compensation shall be calculated by multiplying 25 the recipient's weekly compensation rate calculated under AS 23.30.180, 23.30.185, 26 23.30.190, 23.30.200, or 23.30.215 [,] by the ratio of the cost of living of the area in 27 which the recipient resides to the cost of living in this state; 28 (2) the calculation required by (1) of this subsection does not apply if 29 the recipient is absent from the state for medical or rehabilitation services not 30 reasonably available in the state; 31 (3) if the gross weekly earnings of the recipient and the resulting
01 compensation rate are determined under AS 23.30.220(a)(6), (7), or (10), the 02 calculation required by this subsection applies only to the portion of the recipient's 03 weekly compensation rate attributable to wages earned in the state; 04 (4) application of this subsection may not reduce the weekly 05 compensation rate to less than $154 a week, except as provided in (a) of this section; 06 (5) application of (1) - (4) of this subsection may not result in 07 raising a recipient's weekly compensation rate to an amount that exceeds the 08 weekly compensation rate that the recipient would have received if the recipient 09 had been residing in the state. 10 * Sec. 87. AS 23.30.175(c) is amended to read: 11 (c) The department [BOARD] shall provide by regulation for the 12 determination and comparison of living costs for this state and the other areas in which 13 recipients reside and for the annual redetermination and comparison of these costs. 14 * Sec. 88. AS 23.30.180(a) is amended to read: 15 (a) In case of total disability adjudged to be permanent, 80 percent of the 16 injured employee's spendable weekly wages shall be paid to the employee during the 17 continuance of the total disability. If a permanent partial disability award has been 18 made before a permanent total disability determination, permanent total disability 19 benefits must be reduced by the amount of the permanent partial disability award, 20 adjusted for inflation, in a manner determined by a hearing officer [THE BOARD]. 21 Loss of both hands, [OR] both arms, [OR] both feet, [OR] both legs, or both eyes, or 22 of any two of them, in the absence of conclusive proof to the contrary, constitutes 23 permanent total disability. In all other cases, permanent total disability is determined 24 in accordance with the facts. In making this determination the market for the 25 employee's services shall be the 26 (1) area of residence; 27 (2) area of last employment; 28 (3) [THE] state of residence; and 29 (4) [THE] State of Alaska. 30 * Sec. 89. AS 23.30.190(b) is amended to read: 31 (b) All determinations of the existence and degree of permanent impairment
01 shall be made strictly and solely under the whole person determination as set out in the 02 American Medical Association Guides to the Evaluation of Permanent Impairment, 03 except that an impairment rating may not be rounded to the next five percent. The 04 department [BOARD] shall adopt a supplementary recognized schedule for injuries 05 that cannot be rated by use of the American Medical Association Guides. 06 * Sec. 90. AS 23.30.190(d) is amended to read: 07 (d) When a new edition of the American Medical Association Guides 08 described in (b) of this section is published, the director [BOARD] shall, not later 09 than 90 days after the last day of the month in which the new edition is published, hold 10 an open meeting under AS 44.62.310 to select the date on which the new edition will 11 be used to make all determinations required under (b) of this section. The date selected 12 by the director [BOARD] for using the new edition may not be later than 90 days 13 after the last day of the month in which the new edition is published. After the 14 meeting, the director [BOARD] shall issue a public notice announcing the date 15 selected. The requirements of AS 44.62.010 - 44.62.300 do not apply to the selection 16 or announcement of the date under this subsection. 17 * Sec. 91. AS 23.30.200(b) is amended to read: 18 (b) The wage-earning capacity of an injured employee is determined by the 19 actual spendable weekly wage of the employee if the actual spendable weekly wage 20 fairly and reasonably represents the wage-earning capacity of the employee. A 21 hearing officer [THE BOARD] may, in the interest of justice, fix the wage-earning 22 capacity that is reasonable, having due regard for [TO] the nature of the injury, the 23 degree of physical impairment, the usual employment, and other factors or 24 circumstances in the case that may affect the capacity of the employee to earn wages 25 in a disabled condition, including the effect of disability as it may naturally extend into 26 the future. 27 * Sec. 92. AS 23.30.205(e) is amended to read: 28 (e) The second injury fund may not be bound as to any question of law or fact 29 by reason of an award or an adjudication to which it was not a party or in relation to 30 which the director [COMMISSIONER] was not notified at least three weeks before 31 the award or adjudication, that the fund might be subject to liability for the injury or
01 death. 02 * Sec. 93. AS 23.30.205(f) is amended to read: 03 (f) An employer or the employer's carrier shall notify the director 04 [COMMISSIONER OF LABOR AND WORKFORCE DEVELOPMENT] of any 05 possible claim against the second injury fund as soon as practicable, but in no event 06 later than 100 weeks after the employer or the employer's carrier have knowledge of 07 the injury or death. 08 * Sec. 94. AS 23.30.215(d) is amended to read: 09 (d) Compensation under this chapter to aliens not residents, or about to 10 become nonresidents, of the United States or Canada is the same in amount as 11 provided for residents, except that dependents in a foreign country are limited to 12 widow or widower and child or children, or, if there is no widow or widower and child 13 or children, to surviving father or mother whom the employee has supported, either 14 wholly or in part, for a period of one year before the date of injury. A hearing officer, 15 upon petition of the director, the employer, or [THE BOARD, AT ITS OPTION, 16 OR UPON THE APPLICATION OF] the insurance carrier, may commute all future 17 installments of compensation to be paid to an alien dependent who is not a resident of 18 the United States or Canada by paying or causing to be paid to the alien dependent 19 one-half of the commuted amount of the future installments of compensation as 20 determined by the hearing officer [BOARD]. 21 * Sec. 95. AS 23.30.220(a) is amended to read: 22 (a) Computation of compensation under this chapter shall be on the basis of an 23 employee's spendable weekly wage at the time of injury. An employee's spendable 24 weekly wage is the employee's gross weekly earnings minus payroll tax deductions. 25 An employee's gross weekly earnings shall be calculated as follows: 26 (1) if, at the time of injury, the employee's earnings are calculated by 27 the week, the weekly amount is the employee's gross weekly earnings; 28 (2) if, at the time of injury, the employee's earnings are calculated by 29 the month, the employee's gross weekly earnings are the monthly earnings multiplied 30 by 12 and divided by 52; 31 (3) if, at the time of injury, the employee's earnings are calculated by
01 the year, the employee's gross weekly earnings are the yearly earnings divided by 52; 02 (4) if, at the time of injury, the 03 (A) employee's earnings are calculated by the day, by the hour, 04 or by the output of the employee, the employee's gross weekly earnings are the 05 employee's earnings most favorable to the employee computed by dividing by 06 13 the employee's earnings, including overtime or premium pay, earned during 07 any period of 13 consecutive calendar weeks within the 52 weeks immediately 08 preceding the injury; 09 (B) employee has been employed for less than 13 calendar 10 weeks immediately preceding the injury, then, notwithstanding (1) - (3) of this 11 subsection and (A) of this paragraph, the employee's gross weekly earnings are 12 computed by determining the amount that the employee would have earned, 13 including overtime or premium pay, had the employee been employed by the 14 employer for 13 calendar weeks immediately preceding the injury and dividing 15 this sum by 13; 16 (5) if, at the time of injury, the employee's earnings have not been 17 fixed or cannot be ascertained, the employee's earnings for the purpose of calculating 18 compensation are the usual wage for similar services when the services are rendered 19 by paid employees; 20 (6) if, at the time of injury, the employment is exclusively seasonal or 21 temporary, then, notwithstanding (1) - (5) of this subsection, the gross weekly earnings 22 are 1/50 of the total wages that the employee has earned from all occupations during 23 the 12 calendar months immediately preceding the injury; 24 (7) when the employee is working under concurrent contracts with two 25 or more employers, the employee's earnings from all employers are [IS] considered as 26 if earned from the employer liable for compensation; 27 (8) if an employee when injured is a minor, an apprentice, or a trainee 28 in a formal training program, as determined by a hearing officer [THE BOARD], 29 whose wages, under normal conditions, would increase during the period of disability, 30 the projected increase may be considered by the hearing officer [BOARD] in 31 computing the gross weekly earnings of the employee;
01 (9) if the employee is injured while performing duties as a volunteer 02 ambulance attendant, volunteer police officer, or volunteer fire fighter, then, 03 notwithstanding (1) - (6) of this subsection, the gross weekly earnings for calculating 04 compensation shall be the minimum gross weekly earnings paid a full-time ambulance 05 attendant, police officer, or fire fighter employed in the political subdivision where the 06 injury occurred, or, if the political subdivision has no full-time ambulance attendants, 07 police officers, or fire fighters, at a reasonable figure previously set by the political 08 subdivision to make this determination, but, in no case, may the gross weekly earnings 09 for calculating compensation be less than the minimum wage computed on the basis of 10 40 hours work a [PER] week; 11 (10) if an employee is entitled to compensation under AS 23.30.180 12 and a hearing officer [THE BOARD] determines that calculation of the employee's 13 gross weekly earnings under (1) - (7) of this subsection does not fairly reflect the 14 employee's earnings during the period of disability, the hearing officer [BOARD] 15 shall determine gross weekly earnings by considering the nature of the employee's 16 work, work history, and resulting disability, but compensation calculated under this 17 paragraph may not exceed the employee's gross weekly earnings at the time of injury. 18 * Sec. 96. AS 23.30.240 is amended to read: 19 Sec. 23.30.240. Officers of corporations, municipal corporations, and 20 nonprofit corporations as employees. An executive officer elected or appointed and 21 empowered in accordance with the charter and bylaws of a corporation, other than an 22 official of a municipal corporation or a charitable, religious, educational, or other 23 nonprofit corporation, is an employee of the corporation under this chapter. However, 24 an executive officer of a corporation may waive coverage under this chapter, subject 25 to the approval of the director [COMMISSIONER OF LABOR AND WORKFORCE 26 DEVELOPMENT], notwithstanding AS 23.30.245(b). Notwithstanding any other 27 provision of this chapter, an executive officer of a municipal corporation or of a 28 charitable, religious, educational, or other nonprofit corporation may be brought 29 within the coverage of its insurance contract by the corporation by specifically 30 including the officer in the contract of insurance. The election to bring an executive 31 officer within the coverage continues in force for the period the contract of insurance
01 is in effect. During that period, an executive officer brought within the coverage of 02 the insurance contract is an employee of the corporation under this chapter. 03 * Sec. 97. AS 23.30.250(b) is amended to read: 04 (b) If a hearing officer [THE BOARD], after a hearing, finds that a person 05 has obtained compensation, medical treatment, or another benefit provided under this 06 chapter by knowingly making a false or misleading statement or representation for the 07 purpose of obtaining that benefit, the hearing officer [BOARD] shall order that 08 person to make full reimbursement of the cost of all benefits obtained. Upon entry of 09 an order authorized under this subsection, the hearing officer [BOARD] shall also 10 order that person to pay all reasonable costs and attorney fees incurred by the 11 employer and the employer's carrier in obtaining an order under this section and in 12 defending any claim made for benefits under this chapter. If a person fails to comply 13 with an order of a hearing officer [THE BOARD] requiring reimbursement of 14 compensation and payment of costs and attorney fees, the employer may declare the 15 person in default and proceed to collect any sum due as provided under 16 AS 23.30.170(b) and (c). 17 * Sec. 98. AS 23.30.260 is amended to read: 18 Sec. 23.30.260. Penalty for receiving unapproved fees and soliciting. A 19 person is guilty of a misdemeanor [,] and, upon conviction, is punishable for each 20 offense by a fine of not more than $1,000 [,] or by imprisonment for not more than one 21 year, or by both, if the person 22 (1) receives a fee, other consideration, or a gratuity on account of any 23 services rendered for representation or advice with [IN] respect to a claim, unless 24 the consideration or gratuity is approved by the hearing officer, the commission, 25 [BOARD] or the court; or 26 (2) makes it a business to solicit employment for a lawyer or for the 27 person with [ONESELF IN] respect to a claim or award for compensation. 28 * Sec. 99. AS 23.30.395(28) is amended to read: 29 (28) "self-insurer" means an employer who, instead of insuring 30 liability under this chapter as it provides, elects to pay directly the compensation 31 provided for, and who has furnished to the division [BOARD] satisfactory proof of
01 the employer's financial ability to make the direct payments; 02 * Sec. 100. AS 23.30.395 is amended by adding new paragraphs to read: 03 (35) "commission" means the Workers' Compensation Appeals 04 Commission; 05 (36) "director" means the director of the division of workers' 06 compensation; 07 (37) "division" means the division of workers' compensation; 08 (38) "hearing officer" means a hearing officer employed under 09 AS 23.30.112 to hear workers' compensation claims and petitions under this chapter. 10 * Sec. 101. AS 39.25.120(c)(14) is amended to read: 11 (14) the rehabilitation administrator of the division of workers' 12 compensation [WORKERS' COMPENSATION BOARD]; 13 * Sec. 102. AS 39.25.120(c) is amended by adding new paragraphs to read: 14 (20) hearing officers of the Workers' Compensation Appeals 15 Commission; 16 (21) the reemployment benefits administrator of the division of 17 workers' compensation in the Department of Labor and Workforce Development. 18 * Sec. 103. AS 39.50.200(b)(31) is amended to read: 19 (31) Workers' Compensation Appeals Commission (AS 23.30.007) 20 [BOARD (AS 23.30.005)]; 21 * Sec. 104. AS 44.62.330(a)(15) is amended to read: 22 (15) division of workers' compensation and its director [ALASKA 23 WORKERS' COMPENSATION BOARD], where procedures are not otherwise 24 expressly provided by AS 23.30 ( [THE] Alaska Workers' Compensation Act); 25 * Sec. 105. AS 21.39.155(c) and AS 23.30.395(3) are repealed. 26 * Sec. 106. The uncodified law of the State of Alaska is amended by adding a new section 27 to read: 28 APPLICABILITY. The amendment to AS 23.30.175(b) made by sec. 86 of this Act 29 applies to an injury occurring on or after the effective date of sec. 86 of this Act. 30 * Sec. 107. The uncodified law of the State of Alaska is amended by adding a new section 31 to read:
01 TRANSITION: TERMS OF BOARD OF GOVERNORS MEMBERS. (a) 02 Notwithstanding sec. 5 of this Act, the director of insurance in the Department of Community 03 and Economic Development shall designate members of the board of governors for the Alaska 04 Insurance Guaranty Association to serve staggered initial terms in the manner provided in 05 AS 39.05.055. 06 (b) Terms of members of the board of governors for the Alaska Insurance Guaranty 07 Association serving on July 1, 2004, expire on July 2, 2004, but a member of the board of 08 governors on July 1, 2004, may continue to serve until a successor is appointed if the member 09 meets the standards set out in sec. 5 of this Act for the position in which the member was 10 serving on July 1, 2004. Members of the board of governors for the Alaska Insurance 11 Guaranty Association serving on July 1, 2004, may apply for reappointment to the board by 12 submitting a request to the director of insurance. 13 * Sec. 108. The uncodified law of the State of Alaska is amended by adding a new section 14 to read: 15 TRANSITION: TERMS OF MEMBERS OF WORKERS' COMPENSATION 16 APPEALS COMMISSION. The governor shall designate members of the Workers' 17 Compensation Appeals Commission to serve staggered terms in the manner provided in 18 AS 39.05.055. 19 * Sec. 109. The uncodified law of the State of Alaska is amended by adding a new section 20 to read: 21 TRANSITIONAL PROVISIONS. The terms of the members of the Alaska Workers' 22 Compensation Board who are serving on the effective date of this section expire 45 days after 23 the effective date of this section. All cases heard by and awaiting a decision by the board on 24 the effective date of this section shall be decided by the board before the expiration of the 25 members' terms, and the board's decision or order shall be issued within 45 days after the 26 effective date of this section. Litigation, investigations, and other proceedings pending under 27 a law amended or repealed by this Act, or in connection with functions transferred by this 28 Act, continue in effect and may be continued and completed, notwithstanding a transfer or 29 amendment or repeal provided for in this Act. Certificates, decisions, orders, and regulations 30 issued or adopted under authority of a law amended or repealed by this Act remain in effect 31 for the term issued, or until revoked, vacated, or otherwise modified under the provisions of
01 this Act. Contracts, rights, liabilities, and obligations created by or under a law amended or 02 repealed by this Act, and in effect on the effective date of this section, remain in effect 03 notwithstanding this Act's taking effect. Records, equipment, appropriations, and other 04 property of agencies of the state whose functions are transferred under this Act shall be 05 transferred to implement the provisions of this Act. 06 * Sec. 110. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 TRANSITION: REGULATIONS. The Department of Labor and Workforce 09 Development and the director of insurance in the Department of Community and Economic 10 Development each may proceed to adopt regulations necessary to implement their respective 11 provisions of this Act. The regulations take effect under AS 44.62 (Administrative Procedure 12 Act), but not before the effective date of the statutory changes. 13 * Sec. 111. Section 110 of this Act takes effect immediately under AS 01.10.070(c). 14 * Sec. 112. Except as provided in sec. 111 of this Act, this Act takes effect July 1, 2004.