CSSSHB 51(L&C): "An Act relating to associations of self-insured employers for purposes of providing workers' compensation coverage and allowing employers who are members of the same trade to form associations for providing self-insurance for workers' compensation coverage; and providing for an effective date."
00 CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 51(L&C) 01 "An Act relating to associations of self-insured employers for purposes of providing 02 workers' compensation coverage and allowing employers who are members of the same 03 trade to form associations for providing self-insurance for workers' compensation 04 coverage; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 21 is amended by adding a new chapter to read: 07 Chapter 77. Associations of Self-insured Employers for Providing Workers' 08 Compensation Coverage. 09 Sec. 21.77.010. Self-insurance certificates. (a) The director may issue a self- 10 insurance certificate to an association of employers if the association files an 11 application for a certificate and demonstrates that 12 (1) the members of the association of employers have at least 100 13 employees in the aggregate; 14 (2) the members of the association of employers have a tangible net
01 worth of at least $5,000,000 in the aggregate; 02 (3) the association of employers has paid the annual service fee 03 assessed under AS 23.05.067; 04 (4) each member of the association of employers has a workplace 05 safety rate reduction program in effect under AS 21.89.015; 06 (5) the association of employers has obtained excess insurance 07 coverage in amounts and with coverage required by the director; and 08 (6) the association of employers has filed with the director an 09 indemnity agreement in a form approved by the director jointly and severally binding 10 each member of the association of employers to secure the payment of all 11 compensation due to the members' employees under AS 23.30. 12 (b) An application for a self-insurance certificate must include 13 (1) the name of the association of employers; 14 (2) the address of the principal office of the association of employers 15 and the location where the books and records of the association will be maintained; 16 (3) the date the association of employers was organized; 17 (4) the name and address of each member of the association of 18 employers; 19 (5) the names of the initial members of the board of directors of the 20 association of employers and the name of the association's initial administrator; 21 (6) a copy of agreements entered into with the administrator of the 22 association of employers and a third-party administrator; 23 (7) a copy of the bylaws of the association of employers; 24 (8) a pro forma financial statement prepared by an independent 25 certified public accountant in accordance with generally accepted accounting 26 principles that shows the financial ability of the association of employers to pay all 27 compensation due to its members' employees and their beneficiaries under AS 23.30; 28 (9) a compiled, reviewed, or audited financial statement prepared by an 29 independent certified public accountant for each member of the association of 30 employers or internal financial statements with at least three years of tax returns or 31 evidence of the ability of the association or its members to provide a solvency bond
01 under AS 21.77.020(c); 02 (10) proof that each member of the association of employers will make 03 the initial payment to the association required under AS 21.77.160 on a date specified 04 by the director. 05 (c) Financial information relating to a member of an association of employers 06 received by the director under this section is confidential and is not a public record. 07 (d) For purposes of this section, "association of employers" means a group of 08 five or more employers who are 09 (1) merchants, craftsmen, or businesses in a similar trade or industry; 10 and 11 (2) members of an Alaska trade association for that trade or industry; 12 the Alaska trade association shall be organized under the laws of this state to promote 13 the common interests of the trade or industry and shall have been in existence for at 14 least five years. 15 Sec. 21.77.020. Excess insurance, reinsurance contracts, surety, and 16 solvency bonds. (a) Except as otherwise provided in this section, an association of 17 self-insured employers shall 18 (1) maintain a policy of specific and aggregate excess insurance or a 19 reinsurance contract in a form and amount required by the director; excess insurance 20 or a reinsurance contract must be written by an insurer approved by the director; 21 nothing in this paragraph prohibits an association from purchasing secondary excess 22 insurance or reinsurance contracts in addition to the excess insurance or reinsurance 23 contract required under this paragraph; 24 (2) collect an annual assessment from each member of the association 25 in an amount necessary to maintain the solvency of the association; 26 (3) except as provided in (4) of this subsection, deposit as security with 27 the director a bond executed by the association as principal and issued by a licensed 28 surety, payable to the State of Alaska, and conditioned on the payment of 29 compensation due to the members' employees under AS 23.30; 30 (4) in lieu of a bond, deposit with the director a like amount of lawful 31 money of the United States or other form of security authorized by the director; if
01 security is provided in the form of a savings certificate, certificate of deposit, or 02 investment certificate, the certificate must state that the amount is unavailable for 03 withdrawal except on order of the director. 04 (b) In addition to complying with the requirements of (a) of this section, an 05 association of self-insured employers shall maintain a combined tangible net worth of 06 all members in the association of at least $5,000,000 or deposit with the director a 07 solvency bond, in a form prescribed by the director, in an aggregate amount of at least 08 $5,000,000. 09 (c) The administrator of the association of self-insured employers shall deposit 10 with the director a bond, in an amount determined by the director, executed by the 11 association's administrator as principal, issued by a licensed surety, payable to the 12 State of Alaska, and conditioned on the faithful performance of the administrator's 13 duties. 14 (d) A third-party administrator providing claims services for the association of 15 self-insured employers shall deposit with the director a bond, in an amount determined 16 by the director, executed by the third-party administrator as principal, issued by a 17 licensed surety, payable to the State of Alaska, and conditioned on the faithful 18 performance of the third-party administrator's duties. 19 (e) The director may increase or decrease the amount of a bond or money 20 required to be deposited under this section in accordance with statutory and regulatory 21 requirements for loss reserves in casualty insurance. If the director requires an 22 association of self-insured employers, the association's administrator, or the third- 23 party administrator to increase its deposit, the director may specify the form of the 24 additional security. The association, association's administrator, or third-party 25 administrator shall provide the additional security within 60 days after receiving notice 26 from the director. 27 (f) The security deposited under this section does not relieve an association of 28 self-insured employers from responsibility for the administration of claims and 29 payment of compensation under AS 23.30. 30 Sec. 21.77.030. Surety and solvency bonds. A surety or bonding company 31 may not furnish a bond or other form of security required under this chapter for an
01 association of self-insured employers or the association's members unless the surety or 02 bonding company is authorized to do business in the state. 03 Sec. 21.77.040. Issuance of certificate of self-insurance. (a) On determining 04 that an association is qualified as an association of self-insured employers, the director 05 may issue a certificate of self-insurance to the association and the association's 06 administrator. 07 (b) A certificate of self-insurance must include, without limitation, the name 08 of the association of self-insured employers, the name of each employer who the 09 director determines is a member of the association at the time the certificate is issued, 10 an identification number assigned to the association by the director, and the date the 11 certificate was issued. 12 (c) A certificate of self-insurance is valid until it is withdrawn by the director 13 or voluntarily terminated by the association. 14 (d) The director may not issue a certificate of self-insurance to an association 15 that has had its certification as an association of self-insured employers involuntarily 16 withdrawn by the director within two years immediately preceding the association's 17 application. 18 (e) The director may not grant a request to cancel a certificate of self- 19 insurance unless the association has insured or reinsured all incurred obligations with 20 an insurer authorized to do business in the state under an agreement filed with and 21 approved by the director. The agreement must include coverage for actual claims, 22 claims incurred but not reported, and expenses associated with those claims. 23 Sec. 21.77.050. Effect of certificate. (a) An association of self-insured 24 employers directly assumes the responsibility for providing compensation due the 25 employees of the members of the association and the employers' beneficiaries under 26 AS 23.30. 27 (b) An association of self-insured employers is not required to pay premiums 28 required of other employers under AS 23.30, but is relieved from other liability for 29 personal injury to the same extent as other employers. 30 (c) An association of self-insured employers may act on behalf of or for the 31 benefit of its members to provide for its members' workers' compensation obligations
01 under AS 23.30. An association of self-insured employers shall have the rights and 02 obligations of an employer under AS 23.30. 03 (d) The claims of employees and their beneficiaries resulting from injuries 04 while in the employment of a member of an association of self-insured employers 05 must be handled in the manner provided under AS 23.30, and the association is subject 06 to regulations adopted by the Alaska Workers' Compensation Board. 07 Sec. 21.77.060. Board of directors; members; duties; prohibited acts. (a) 08 An association of self-insured employers shall be operated by a board of directors 09 consisting of at least five members elected by the members of the association for terms 10 as set out in the bylaws of the association. At least two-thirds of the members of the 11 board of directors shall be employees, officers, or directors of the members of the 12 association. An association's administrator, third-party administrator, or an owner, 13 officer, employee or other person affiliated with the association's administrator or 14 third-party administrator may not serve as a member of the board of directors. A 15 member of the board of directors must be a resident of this state or an officer of a 16 corporation authorized to do business in this state. 17 (b) The board of directors of an association of self-insured employers shall 18 (1) ensure the prompt payment of compensation due under AS 23.30; 19 (2) take all actions necessary to protect the assets of the association; 20 (3) employ full time an administrator to carry out the policies of the 21 board of directors and perform the duties the board delegates to the administrator; an 22 association's administrator may not perform the duties assigned to a third-party 23 administrator; 24 (4) employ a third-party administrator to administer the claims or other 25 obligations of the association during the period of the contract; 26 (5) engage the services of an independent certified public accountant to 27 prepare the statement of financial condition required under AS 21.77.150; and 28 (6) maintain minutes of the meetings of the board and make the 29 minutes available for inspection by the director. 30 (c) The board of directors of an association of self-insured employers may not 31 (1) extend credit to any member of the association for the payment of
01 that member's annual assessment, except under a payment plan approved by the 02 director; 03 (2) borrow money from the association or in the name of the 04 association, except in the ordinary course of its business, without prior approval from 05 the director. 06 Sec. 21.77.070. Fiscal responsibilities. (a) The board of directors of an 07 association of self-insured employers is responsible for the money collected and 08 disbursed by the association. 09 (b) The board of directors shall establish 10 (1) a claims account in a financial institution in this state that is 11 approved by the director and that is federally insured; except as provided in (c) of this 12 section, at least 65 percent of the annual assessments collected by the association from 13 its members must be deposited in the claims account to pay claims, expenses related to 14 those claims, costs associated with the association's policy of excess insurance or 15 reinsurance contract, and assessments, payments, and penalties related to the 16 subsequent injury account and the uninsured employers' claim account; 17 (2) an administrative account in a financial institution in this state that 18 is approved by the director and that is federally insured; the amount of annual 19 assessments collected by the association not deposited in the claims account must be 20 deposited in the administrative account to pay the administrative expenses of the 21 association. 22 (c) The director may authorize an association of self-insured employers to 23 deposit less than 65 percent of the associations annual assessments in a claims account 24 if the association presents evidence satisfactory to the director that more than 35 25 percent of the association's annual assessments are needed to maintain programs for 26 loss control and occupational safety. 27 (d) The board of directors may invest the money of the association of self- 28 insured employers not needed to pay the obligations of the association under 29 AS 23.30. 30 (e) The director shall review the accounts of an association of self-insured 31 employers established under this section at the times necessary to ensure compliance
01 with the provisions of this section. 02 Sec. 21.77.080. Prohibited relationships. (a) An administrator of an 03 association of self-insured employers or an employee, officer, or director of an 04 association's administrator may not be an employee, officer, or director of a third-party 05 administrator employed by the association or have a direct or indirect financial interest 06 in the third-party administrator. 07 (b) A third-party administrator or an employee, officer, or director of a third- 08 party administrator may not be an employee, officer, or director of the association's 09 administrator or have a direct or indirect financial interest in the association's 10 administrator. 11 Sec. 21.77.090. Termination and cancellation of membership in 12 association; coverage following termination or cancellation. (a) A member of an 13 association of self-insured employers may terminate its membership at any time by 14 submitting to the association's administrator a notice of intent to withdraw from the 15 association at least 120 days before the effective date of withdrawal. The notice of 16 intent to withdraw must include a statement indicating that the member has 17 (1) been certified as a self-insured employer under AS 23.30.090; 18 (2) become a member of another association of self-insured employers; 19 or 20 (3) become insured for liability under AS 23.30 by a private carrier 21 authorized to do business in this state. 22 (b) The board of directors of an association of self-insured employers may 23 cancel the membership of a member of the association in accordance with the bylaws 24 of the association. 25 (c) At the expense of the member whose membership is terminated or 26 cancelled, the association of self-insured employers shall maintain coverage for that 27 member for 30 days after the notice is given under (a) of this section unless the 28 association first receives notice from the association's administrator that the member 29 has 30 (1) been certified as a self-insured employer under AS 23.30.090; 31 (2) become a member of another association of self-insured employers;
01 or 02 (3) become insured for liability under AS 23.30 by a private carrier 03 authorized to do business in this state. 04 Sec. 21.77.100. Notification of additional members, termination or 05 cancellation of membership, or change in information. (a) An association of self- 06 insured employers shall notify the director in writing within 30 days after a member 07 withdraws from the association, a new member joins the association, or the board of 08 directors of the association cancels a membership. In the case of a new member, the 09 notice must include information that the new member is qualified under AS 21.77.010 10 and the financial information for the new member required under AS 21.77.010(b)(9). 11 (b) An association of self-insured employers shall notify the director of any 12 change in the information submitted in its application for a certificate of self-insurance 13 or in the manner of its compliance with AS 21.77.020 within 30 days after the change. 14 Sec. 21.77.110. Liability for compensation obligations of members. An 15 association of self-insured employers is liable for the payment of any compensation 16 required to be paid by a member of the association under AS 23.30 during the period 17 of membership. Insolvency or bankruptcy of a member does not relieve the association 18 of liability for the payment of compensation. 19 Sec. 21.77.120. Examination of books, records, accounts, and assets; 20 payment of fees. The director may examine the books, records, accounts, and assets 21 of an association of self-insured employers as necessary to carry out the provisions of 22 this chapter. The director may charge the association a reasonable fee for conducting 23 the examination. 24 Sec. 21.77.130. Director as resident agent of association. The director is 25 considered the resident agent to receive initial legal process authorized by law or court 26 rule to be served on the association of self-insured employers for as long as the 27 association is obligated to pay compensation under AS 23.30. 28 Sec. 21.77.140. Merger of associations. An association of self-insured 29 employers may merge with another association of self-insured employers if the 30 members of the merging associations are members of the same trade association, the 31 resulting association assumes in full all obligations of the merging associations, and
01 the merger is approved by the director. The director may hold a hearing on a proposed 02 merger on the motion of the director or at the request of a member of the merging 03 associations. 04 Sec. 21.77.150. Statement of financial condition. (a) An association of self- 05 insured employers shall file with the director an audited statement of financial 06 condition prepared by an independent certified public accountant. The statement must 07 be filed within 120 days after the conclusion of the association's fiscal year and must 08 contain information for the previous fiscal year. 09 (b) The statement required in (a) of this section must be prepared in 10 accordance with generally accepted accounting principles and must include 11 (1) a statement of reserves for actual claims and expenses, claims 12 incurred but not reported and expenses associated with those claims, assessments that 13 are due but not paid, and unpaid debts; unpaid debts must be shown as liabilities; 14 (2) an actuarial opinion regarding reserves, prepared by a member of 15 the American Academy of Actuaries or another specialist in loss reserves identified in 16 the annual statement adopted by the National Association of Insurance 17 Commissioners, including a statement of actual claims and the expenses associated 18 with those claims and a statement of claims incurred but not reported, and the 19 expenses associated with those claims. 20 (c) The director may require the filing of other reports necessary to carry out 21 the provisions of this section, including 22 (1) audits of the payrolls of the members of an association of self- 23 insured employers; 24 (2) reports of losses; and 25 (3) quarterly financial statements. 26 Sec. 21.77.160. Calculation of annual assessments. (a) Except as provided in 27 (b) of this section, the annual assessment required to be paid by each member of an 28 association of self-insured employers must be 29 (1) calculated by a rate service organization that is a member of the 30 American Academy of Actuaries or another specialist approved by the director; and 31 (2) based on the assessment rate for the industrial classification of that
01 member, adjusted by the member's individual experience. 02 (b) The director may approve a reduction in the annual assessment based on 03 the association's level of expenses and loss experience. 04 (c) If approved by the director, an association of self-insured employers may 05 calculate the annual assessment required to be paid by each member of the association. 06 An assessment calculated by the association must be based on at least three years of 07 the member's individual experience. 08 Sec. 21.77.170. Annual audits. An association of self-insured employers shall 09 cause to be conducted at least annually an audit of each member to verify the 10 individual experience of each member of the association, the payroll of each member 11 of the association, and the assessment required to be paid by each member of the 12 association. The audit required under this section must be conducted by a payroll 13 auditor approved by the director. An association shall pay the expenses of an audit 14 required under this section. 15 Sec. 21.77.180. Objections to industrial classification. An association of 16 self-insured employers or a member of the association may request a hearing before 17 the director to object to an industrial classification assigned to a member of the 18 association as a result of an audit conducted under AS 21.77.170. If the director 19 determines that the assessment required to be paid by a member of the association is 20 insufficient because of the industrial classification assigned to the employer, the 21 director shall order the association to collect from that member any amount required to 22 recover the deficiency. If the director determines that the assessment is excessive 23 because of the industrial classification assigned to the employer, the director shall 24 order the association to pay the member the excess amount collected. 25 Sec. 21.77.190. Payment of dividends to members. The board of directors of 26 an association of self-insured employers may, with the approval of the director, 27 declare and distribute dividends to the members of the association if the assets of the 28 association exceed the amount necessary to pay its obligations and administrative 29 expenses, carry reasonable reserves, and provide for contingencies. A dividend 30 declared under this section must be distributed not less than 12 months after the date 31 of declaration. A dividend may be paid only to an employer who was a member for at
01 least 12 months before to the date of declaration, and payment of a dividend may not 02 be conditioned on a member's continuing membership in the association. 03 Sec. 21.77.200. Plan for payment of annual assessment. An association of 04 self-insured employers shall adopt a plan for the payment of annual assessments by the 05 members of the association. The plan must be approved by the director and must 06 include a requirement for an initial payment, in advance, of a portion of the annual 07 assessment due from each member of the association and for the balance of the annual 08 installment to be paid in quarterly or monthly installments. The advance payment must 09 be in an amount equal to at least 15 percent of the member's annual assessment. 10 Sec. 21.77.210. Required reserves. An association of self-insured employers 11 shall maintain actuarially appropriate loss reserves. Loss reserves must include 12 reserves for 13 (1) actual claims and the expenses associated with those claims; 14 (2) claims incurred but not reported and the expenses associated with 15 those claims; and 16 (3) reserves for uncollected debts based on the experience of the 17 association or other associations. 18 Sec. 21.77.220. Regulation by division of insurance. Self-insurance provided 19 under a certificate issued to an association of self-insured employers may not be 20 considered insurance for the purpose of any other law of the state and is subject only 21 to regulations adopted by the director to implement this chapter. 22 Sec. 21.77.230. Insufficient assets to pay compensation and maintain 23 reserves. (a) If the assets of an association of self-insured employers are insufficient 24 to pay all compensation under AS 23.30 and to maintain the reserves required under 25 AS 21.77.210, the association shall immediately notify the director and 26 (1) transfer surplus funds acquired from a previous year to the current 27 year to make up the deficiency; 28 (2) transfer money from the administrative account of the association 29 to the claims account of the association; 30 (3) collect an additional assessment from the members of the 31 association in an amount required to make up the deficiency; or
01 (4) take any other action, approved by the director, to make up the 02 deficiency. 03 (b) If an association of self-insured employers wishes to transfer surplus funds 04 from one year to another, the association shall first notify the director of the transfer. 05 (c) The director shall order the association of self-insured employers to make 06 up any deficiency in accordance with (a) of this section if the association fails to do so 07 within 30 days after notifying the director of the deficiency. 08 (d) An association of self-insured employers is considered to be insolvent if it 09 fails to collect an additional assessment from its members within 30 days after being 10 ordered to do so by the director or fails to make up the deficiency in any other manner 11 within 60 days after being ordered to do so by the director. 12 Sec. 21.77.240. Order to cease and desist; penalties. (a) The director may 13 issue an order requiring an association of self-insured employers or a member of an 14 association to cease and desist from engaging in an act or practice found to be in 15 violation of this chapter or a regulation adopted under AS 21.77.300. 16 (b) If the director determines that an association of self-insured employers or 17 member of an association has violated an order to cease and desist, the director may 18 impose an administrative fine of not more than $10,000 for each violation of the order, 19 not to exceed an aggregate amount of $100,000, and may, in addition, withdraw the 20 association's certificate of self-insurance. 21 Sec. 21.77.250. Administrative fines. The director may impose an 22 administrative fine for each violation of a provision of this chapter or regulation 23 adopted under AS 21.77.300. Except as provided in AS 21.77.240, the amount of the 24 fine may not exceed $1,000 for each violation or an aggregate amount of $10,000. 25 Sec. 21.77.260. Withdrawal of certificate; effect of withdrawal. (a) The 26 director may withdraw the certificate of an association of self-insured employers if 27 (1) the association's certificate was obtained by fraud; 28 (2) the application for the certificate contained a material 29 misrepresentation; 30 (3) the association is found to be insolvent; 31 (4) the association fails to have five or more members;
01 (5) the association fails to pay the costs of an examination or a penalty, 02 fee, or assessment required under this chapter; 03 (6) the association fails to comply with a provision of this chapter or 04 regulation adopted under AS 21.77.300; 05 (7) the association fails to comply with an order of the director within 06 the time prescribed by law or in the director's order; or 07 (8) the association or its third-party administrator misappropriates, 08 converts, illegally withholds, or refuses to pay any money to which a person is entitled 09 and that was entrusted to the association in its fiduciary capacity. 10 (b) If the director withdraws a certificate of self-insurance, each employer who 11 is a member of the association of self-insured employers remains liable for the 12 employer's obligations incurred before and after the order of withdrawal. 13 (c) Before withdrawing a certificate under this section, the director shall give 14 written notice to the association of self-insured employers by certified mail that the 15 certificate of the association will be withdrawn 10 days after receipt of the notice 16 unless, within that time, the association corrects the conduct set out in the notice as the 17 reason for the withdrawal or submits a written request for a hearing to the director. 18 The director may grant additional time, not to exceed an additional 120 days, before 19 the withdrawal of the certificate if the grounds for withdrawal are based on (a)(4) of 20 this section and the association is financially sound and capable of fulfilling its 21 commitments. 22 (d) The director may not take action under this section unless the director has 23 provided the association of self-insured employers with an opportunity for an informal 24 meeting to discuss and seek correction of conduct that would be grounds for 25 withdrawal of the association's certificate of self-insurance. 26 Sec. 21.77.270. Retention of security deposit in event of termination. If the 27 certificate of an association of self-insured employers is terminated or withdrawn for 28 any reason, the security deposited under AS 21.77.020 must remain on deposit for at 29 least 36 months in an amount necessary to secure the outstanding and contingent 30 liability for compensation payable under AS 23.30. At the expiration of the 36-month 31 period, or another period the director may prescribe, the director may accept a paid-up
01 policy of insurance in a form approved by the director in lieu of the previously 02 deposited security. 03 Sec. 21.77.280. Insolvency; termination of liability on surety bond; effect 04 of termination of surety bond. (a) For purposes of this chapter, an association of 05 self-insured employers is insolvent if it is unable to pay its outstanding obligations as 06 they mature in the regular course of business. 07 (b) If an association of self-insured employers becomes insolvent, institutes 08 any voluntary proceeding under the bankruptcy laws of the United States or is named 09 in any involuntary proceeding under those laws, makes a general or special assignment 10 for the benefit of creditors, or fails to pay compensation due under AS 23.30, after an 11 order for the payment of a claim becomes final, the director may, after giving at least 12 10 days' notice to the association and its insurer or guarantor, use money or interest on 13 securities, sell securities, or institute legal proceedings on a surety bond deposited with 14 the director to the extent necessary to make the payment. 15 (c) A surety providing a surety bond under AS 21.77.020 may terminate 16 liability on its surety bond by giving the director and the association of self-insured 17 employers, the association's administrator, or the third-party administrator 90 days' 18 written notice. Termination does not limit liability that was incurred under the surety 19 bond before the termination. If the association fails to requalify as an association of 20 self-insured employers on or before the termination date, the director shall withdraw 21 the association's certificate of self-insurance, effective on the date the termination 22 becomes effective. 23 Sec. 21.77.290. Judicial review. A party aggrieved by a decision of the 24 director under this chapter may seek judicial review in accordance with applicable 25 court rules. 26 Sec. 21.77.300. Regulations. The director may adopt regulations to implement 27 the provisions of this chapter. 28 Sec. 21.77.399. Definitions. In this chapter, 29 (1) "association of self-insured employers" means an association of 30 employers that has been granted a certificate of self-insurance under AS 21.77.010; 31 (2) "third-party administrator" means a person under contract with an
01 association of self-insured employers to administer, from one or more offices in this 02 state, all claims for the association arising under AS 23.30 and maintain records 03 concerning those claims. 04 * Sec. 2. This Act takes effect immediately under AS 01.10.070(c).