00                            SENATE BILL NO. 130                                                                         
01 "An Act relating to a special deposit for workers' compensation and employers' liability                                
02 insurers; relating to assigned risk pools; relating to workers' compensation insurers;                                  
03 stating the intent of the legislature, and setting out limitations, concerning the                                      
04 interpretation, construction, and implementation of workers' compensation laws;                                         
05 relating to the Alaska Workers' Compensation Board; assigning certain Alaska                                            
06 Workers' Compensation Board functions to the division of workers' compensation in the                                   
07 Department of Labor and Workforce Development and to that department, and                                               
08 authorizing the board to delegate administrative and enforcement duties to the division;                                
09 establishing a Workers' Compensation Appeals Commission; providing for workers'                                         
10 compensation hearing officers in workers' compensation proceedings; relating to                                         
11 workers' compensation medical benefits and to charges for and payment of fees for the                                   
12 medical benefits; relating to agreements that discharge workers' compensation liability;                                

01 relating to workers' compensation awards; relating to reemployment benefits and job                                     
02 dislocation benefits; relating to coordination of workers' compensation and certain                                     
03 disability benefits; relating to division of workers' compensation records; relating to                                 
04 release of treatment records; relating to an employer's failure to insure and keep                                      
05 insured or provide security; providing for appeals from compensation orders; relating                                   
06 to workers' compensation proceedings; providing for supreme court jurisdiction of                                       
07 appeals from the Workers' Compensation Appeals Commission; providing for a                                              
08 maximum amount for the cost-of-living adjustment for workers' compensation benefits;                                    
09 relating to attorney fees; providing for the department to enter into contracts with                                    
10 nonprofit organizations to provide information services and legal representation to                                     
11 injured employees; providing for administrative penalties for employers uninsured or                                    
12 without adequate security for workers' compensation; relating to fraudulent acts or                                     
13 false or misleading statements in workers' compensation and penalties for the acts or                                   
14 statements; providing for members of a limited liability company to be included as an                                   
15 employee for purposes of workers' compensation; establishing a workers' compensation                                    
16 benefits guaranty fund; relating to the second injury fund; making conforming                                           
17 amendments; providing for a study and report by the medical services review                                             
18 committee; and providing for an effective date."                                                                        
19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
20    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
21 to read:                                                                                                                
22       LEGISLATIVE INTENT.  It is the intent of the legislature by secs. 2 - 4 of this Act                               
23            (1)  to reform the workers' compensation system in Alaska to ensure the                                      
24 continued payment of benefits in the event of an insurer insolvency; and                                                
25            (2)  to reduce the overall costs of workers' compensation premiums to                                        

01 employers.                                                                                                            
02    * Sec. 2.  AS 21.09.090 is amended by adding new subsections to read:                                              
03            (e)  In addition to and separate from the deposit required under (b) of this                                 
04       section, an insurer that is authorized to transact workers' compensation and employer's                           
05       liability insurance as defined in AS 21.12.070(a)(3) shall deposit in this state, through                         
06       the director, for the protection of persons in this state covered by workers'                                     
07       compensation insurance issued by the insurer, an amount no less than the greater of                               
08                 (1)  $100,000; or                                                                                       
09                 (2)  an amount equal to the sum of the following less any credit for                                    
10       reinsurance that the insurer may take under (f) of this section:                                                  
11                      (A)  the aggregate of the present value at four percent interest of                                
12            the total determined and estimated future loss and loss expense payment upon                                 
13            each claim incurred under a policy written in this state more than three years                               
14            before the date of computation; and                                                                          
15                      (B)  for each of the three years before the date of computation,                                   
16            65 percent of the earned premium for the year less each loss and loss expense                                
17            payment made upon a claim incurred in the corresponding year, except that the                                
18            amount for any year may not be less than the present value at four percent                                   
19            interest of the total determined and estimated future loss and loss expense                                  
20            payment upon each claim incurred under a policy written in this state that year.                             
21            (f)  In calculating the deposit amount required under (e)(2) of this section, an                             
22       insurer may take a credit for reinsurance if the reinsurer has deposited in trust in this                         
23       state, through the director, an amount at least equal to the credit to be taken, and no                           
24       less than the aggregate of all credits taken by each insurer under this subsection.                               
25    * Sec. 3.  AS 21.24.130 is amended by adding a new subsection to read:                                             
26            (f)  If an insurer is found to be insolvent by a proceeding under AS 21.78 or by                             
27       a court of competent jurisdiction in any other state, the director shall take control of                          
28       the insurer's deposit made under AS 21.09.090(e).  The deposit assets shall be                                    
29       released, at the discretion of the director, to the Alaska Insurance Guaranty                                     
30       Association (AS 21.80) to reimburse for a valid loss and loss expense claim payment                               
31       made by the association that is within the purpose of the deposit.  The director shall                            

01       pay the remaining deposit assets to the receiver, conservator, rehabilitator, or                                  
02       liquidator of the insurer, or to any other properly designated official who succeeds to                           
03       the management and control of the insurer's assets, after the director determines that                            
04       all loss and loss expense liabilities have been paid that were incurred on the insurer's                          
05       policies written in this state for which the deposit was required.                                                
06    * Sec. 4.  AS 21.39.155(a) is amended to read:                                                                     
07            (a)  The director may require insurers, except a reciprocal insurer formed [BY                               
08       AND INSURING ONLY A GROUP OF MUNICIPALITIES OR NONPROFIT                                                          
09       PUBLIC UTILITIES] under AS 21.75 [OR A RECIPROCAL INSURER FORMED                                                  
10       UNDER AS 21.75 TO PROVIDE MARINE INSURANCE], as a condition of writing                                            
11       a line of insurance dealing with medical malpractice or workers' compensation, to                                 
12       participate in an assigned risk pool if the director finds that mandatory carrier                                 
13       participation is in the public interest.                                                                          
14    * Sec. 5.  AS 23.05.067(a) is amended to read:                                                                     
15            (a)  Each insurer providing workers' compensation insurance and each                                         
16       employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall                            
17       pay an annual service fee to the department for the administrative expenses of the state                          
18       for workers' safety programs under AS 18.60 and the workers' compensation program                                 
19       under AS 23.30 as follows:                                                                                        
20                 (1)  for each employer,                                                                                 
21                      (A)  except as provided in (b) of this section, the service fee                                    
22            shall be paid each year to the department at the time that the annual report is                              
23            required to be filed under AS 23.30.155(m) or (n); and                                                       
24                      (B)  the service fee is 2.9 percent of all payments reported to the                                
25            Alaska Workers' Compensation Board under AS 23.30.155(m) or (n) [,                                           
26            EXCEPT SECOND INJURY FUND PAYMENTS]; and                                                                     
27                 (2)  for each insurer, the director of the division of insurance shall,                                 
28       under (e) of this section, deposit from funds received from the insurer under                                     
29       AS 21.09.210 a service fee of 1.82 percent of the direct premium income for workers'                              
30       compensation insurance received by the insurer during the year ending on the                                      
31       preceding December 31, subject to all the deductions specified in AS 21.09.210(b).                                

01    * Sec. 6.  AS 23.30 is amended by adding a new section to read:                                                    
02            Sec. 23.30.001.  Intent of the legislature and construction of chapter.  It is                             
03       the intent of the legislature that                                                                                
04                 (1)  this chapter be interpreted so as to ensure the quick, efficient, fair,                            
05       and predictable delivery of indemnity and medical benefits to injured workers at a                                
06       reasonable cost to the employers who are subject to the provisions of this chapter;                               
07                 (2)  workers' compensation cases shall be decided on their merits                                       
08       except where otherwise provided by statute;                                                                       
09                 (3)  this chapter may not be construed by the courts in favor of a party;                               
10                 (4)  hearings in workers' compensation cases shall be impartial and fair                                
11       to all parties and that all parties shall be afforded due process and an opportunity to be                        
12       heard and for their arguments and evidence to be fairly considered.                                               
13    * Sec. 7.  AS 23.30.005(a) is amended to read:                                                                     
14            (a)  The Alaska Workers' Compensation Board consists of a southern panel of                                  
15       three members sitting for the first judicial district, a northern panel of three members                          
16       sitting for the second and fourth judicial districts, four southcentral panels of three                           
17       members each sitting for the third judicial district, and one panel of three members                              
18       that may sit in any judicial district.  Each panel must include the commissioner of                               
19       labor and workforce development or a hearing officer designated to represent [THE                             
20       DESIGNATED REPRESENTATIVE OF] the commissioner, a representative of                                               
21       industry, and a representative of labor.  The latter two members of each panel shall be                           
22       appointed by the governor and are subject to confirmation by a majority of the                                    
23       members of the legislature in joint session.  The board shall by regulation provide                           
24       procedures to avoid conflicts and the appearance of impropriety in hearings.                                  
25    * Sec. 8.  AS 23.30.005(b) is amended to read:                                                                     
26            (b)  The commissioner shall act as chairman and executive officer of the board                               
27       and chairman of each panel.  The commissioner may designate a representative to                               
28       act for the commissioner as chair and executive officer of the board.  The                                    
29       commissioner may designate hearing officers to serve as chairs of panels for                                  
30       hearing claims.  [IF THE COMMISSIONER DESIGNATES A REPRESENTATIVE                                             
31       TO ACT FOR THE COMMISSIONER, THE REPRESENTATIVE SHALL SERVE                                                       

01       IN THAT CAPACITY ON THE BOARD AND ON EACH PANEL.]                                                                 
02    * Sec. 9.  AS 23.30.005 is amended by adding new subsections to read:                                              
03            (m)  The department may in its discretion contract with a non-profit                                         
04       organization to provide to employees information services and legal representation in                             
05       proceedings under this chapter.                                                                                   
06            (n)  The board may by regulation delegate authority to the director to assist the                            
07       board in administering and enforcing this chapter.                                                                
08    * Sec. 10.  AS 23.30 is amended by adding new sections to read:                                                    
09            Sec. 23.30.007.  Workers' Compensation Appeals Commission.  (a)  There                                     
10       is established in the Department of Labor and Workforce Development the Workers'                                  
11       Compensation Appeals Commission.  The commission has jurisdiction to hear appeals                                 
12       from final decisions and orders of the board under this chapter.  Jurisdiction of the                             
13       commission is limited to administrative appeals arising under this chapter.                                       
14            (b)  The commission consists of five members appointed by the governor and                                   
15       confirmed by a majority of the members of the legislature in joint session.  The                                  
16       members shall be appointed as follows:                                                                            
17                 (1)  a member appointed as chair who meets the requirements of (c)(2)                                   
18       of this section;                                                                                                  
19                 (2)  two members who, because of their employment or affiliations,                                      
20       may be classified as a representative of employees covered by this chapter;                                       
21                 (3)  two members who, because of their employment or affiliations,                                      
22       may be classified as a representative of employers covered by this chapter.                                       
23            (c)  To be eligible for appointment under this section                                                       
24                 (1)  the member must                                                                                    
25                      (A)  be a citizen of the United States;                                                            
26                      (B)  be a resident of the state for the five years preceding the                                   
27            appointment; and                                                                                             
28                      (C)  have not been convicted of either a                                                           
29                           (i)  felony; or                                                                               
30                           (ii)  misdemeanor related to workers' compensation;                                           
31                 (2)  the chair must                                                                                     

01                      (A)  meet the criteria specified in (1) of this subsection;                                        
02                      (B)  be licensed to practice law in this state and be a member in                                  
03            good standing with the Alaska Bar Association; and                                                           
04                      (C)  have engaged in the active practice of law for at least five                                  
05            years with experience in workers' compensation in this state.                                                
06            (d)  A member may act and receive compensation under this section from the                                   
07       date of appointment until confirmation or rejection by the legislature.                                           
08            (e)  The term of service on the commission is five years.  A member may be                                   
09       reappointed so long as the reappointment complies with the provisions of this section.                            
10            (f)  The chair of the commission is in the exempt service under AS 39.25.110                                 
11       and shall receive a monthly salary that is not less than Step A nor more than Step F of                           
12       Range 27 of the salary schedule in AS 39.27.011(a) for Anchorage, Alaska.                                         
13            (g)  A vacancy arising in the commission shall be filled by appointment by the                               
14       governor and confirmed by a majority of the members of the legislature in joint                                   
15       session.  Except as provided in AS 39.05.080(4), an appointee selected to fill a                                  
16       vacancy shall hold office for the unexpired term of the member whose vacancy is                                   
17       filled.  A vacancy in the commission does not impair the authority of a quorum of                                 
18       members to exercise all the powers and perform all the duties of the commission.                                  
19            (h)  An appeal to the commission shall be heard and decided by a three-                                      
20       member panel of the commission.  An appeal panel shall consist of the chair of the                                
21       commission and two members of the commission assigned by the chair, one member                                    
22       classified as representing employees, and one member classified as representing                                   
23       employers.  At other meetings to conduct commission business, the number of                                       
24       commission members classified as representing employees must equal the number of                                  
25       commission members classified as representing employers.  The chair of the                                        
26       commission and two representative members of the commission, one classified as                                    
27       representing employees and one classified as representing employers, constitutes a                                
28       quorum.                                                                                                           
29            (i)  A member of the commission may be removed from office by the governor                                   
30       for good cause.  To be removed for cause, a member of the commission shall be given                               
31       a copy of the charges and afforded an opportunity to be heard in person or by counsel                             

01       in the member's own defense upon not less than 10 days' notice.  If the member is                                 
02       removed for cause, the governor shall file with the lieutenant governor a complete                                
03       statement of all charges made against the member, the governor's findings on the                                  
04       charges, and the record of any proceedings.  In this subsection, "good cause" includes                            
05                 (1)  misconduct in office or violation of AS 39.52;                                                     
06                 (2)  conviction of a felony;                                                                            
07                 (3)  conviction of a misdemeanor related to workers' compensation;                                      
08                 (4)  inability to serve, neglect of duty, incompetence, unjustified failure                             
09       to handle the caseload assigned, or similar nonfeasance of office; and                                            
10                 (5)  failure to continue to meet the requirements of this section relating                              
11       to qualification for office.                                                                                      
12            (j)  Representative members are entitled to compensation in the amount of                                    
13       $200 a day for each day spent in actual hearing of appeals or on authorized official                              
14       business incidental to their duties, and to transportation and per diem as provided by                            
15       law.  Compensation shall be paid pro rata for each portion of a day spent in actual                               
16       hearing of appeals or on authorized official business.                                                            
17            (k)  A member of the commission may not hear an appeal under this chapter if                                 
18                 (1)  a party is an employee or was, in the past seven years, an employee                                
19       of the commission member or of a business that employs the commission member;                                     
20       this paragraph does not apply to the chair of the commission when the State of Alaska                             
21       is or was the employer of a party;                                                                                
22                 (2)  a party is a member or was, in the past seven years, a member of                                   
23       the same union or employee association as the commission member;                                                  
24                 (3)  a party has a contractual relationship with the commission member,                                 
25       a business that employs the commission member, or a union or employee association                                 
26       of which the commission member is a member;                                                                       
27                 (4)  the commission member is unable to be fair, impartial, and                                         
28       unbiased toward the appeal participants; or                                                                       
29                 (5)  participation in the appeal is a violation of AS 39.52.                                            
30            (l)  If the chair of the commission is unable to hear an appeal for reasons of                               
31       absence or illness in excess of 10 days, or for reasons set out in (k) of this section, the                       

01       commissioner of the department shall appoint a person who meets the qualifications of                             
02       this section to serve as chair to hear the appeal as chair pro tem.  The person shall                             
03       receive the compensation provided in (j) of this section.  Appointment of a chair pro                             
04       tem does not require legislative confirmation.                                                                    
05            (m)  Each member of the commission, before entering upon the duties of                                       
06       office, shall take and subscribe to the oath prescribed for principal officers of the state.                      
07            (n)  The offices of the commission shall be physically separate from the offices                             
08       of the division.                                                                                                  
09            Sec. 23.30.008.  Powers and duties of the commission.  (a)  The commission                                 
10       shall be the exclusive and final authority for the hearing and determination of all                               
11       questions of law and fact arising under this chapter in those matters that have been                              
12       appealed to the commission, except for an appeal to the Alaska Supreme Court.  The                                
13       commission does not have jurisdiction in any case that does not arise under this                                  
14       chapter or in any criminal case.  On any matter taken to the commission, the decision                             
15       of the commission is final and conclusive, unless appealed to the Alaska Supreme                                  
16       Court, and shall stand in lieu of the order of the board from which the appeal was                                
17       taken.  Unless reversed by the Alaska Supreme Court, decisions of the commission                                  
18       have the force of legal precedent.                                                                                
19            (b)  The commission, in its administrative capacity, shall maintain, index, and                              
20       make available for public inspection the final administrative decisions and orders of                             
21       the commission and of the board.  The chair of the commission may review and                                      
22       circulate among the other members of the relevant commission appeal panel the drafts                              
23       of the panel's formal decisions and decisions upon reconsideration.  The drafts are                               
24       confidential documents and are not subject to disclosure.                                                         
25            (c)  The chair of the commission shall draft and propose, and the commission                                 
26       in its administrative capacity may adopt, regulations implementing the commission's                               
27       authority and duties under this chapter, including rules of procedure and evidence for                            
28       proceedings before the commission under this chapter.  The provisions of AS 44.62                                 
29       (Administrative Procedure Act) apply to the adoption of regulations by the                                        
30       commission.                                                                                                       
31            (d)  In an appeal, the commission shall award a successful party reasonable                                  

01       costs and, if the party is represented by an attorney, attorney fees that the commission                          
02       determines to be fully compensatory and reasonable.  However, the commission may                                  
03       not make an award of attorney fees against an injured worker unless the commission                                
04       finds that the worker's position on appeal was frivolous or unreasonable or the appeal                            
05       was taken in bad faith.                                                                                           
06            (e)  The commission, in its administrative capacity, may adopt and alter an                                  
07       official seal and do all things necessary, convenient, or desirable to carry out the                              
08       powers expressly granted or necessarily implied in this chapter.                                                  
09            Sec. 23.30.009.  Powers and duties of the chair of the commission.  (a)  The                               
10       chair of the commission shall exercise general supervision over the office of the                                 
11       commission and over appeals, and shall direct the administrative functions of the                                 
12       commission.  The chair of the commission shall serve as the executive officer of the                              
13       commission and shall have authority in all administrative matters relating to the                                 
14       members.  The chair may                                                                                           
15                 (1)  employ and supervise commission staff and appoint a commission                                     
16       clerk;                                                                                                            
17                 (2)  establish and implement a time management system for the                                           
18       commission members and staff and manage the calendar of appeals;                                                  
19                 (3)  assign the work of the commission members and staff so that                                        
20       appeals are resolved as expeditiously and competently as possible;                                                
21                 (4)  advise and cooperate with the board to develop appropriate                                         
22       procedures for maintenance and transfer of hearing files and the preservation and                                 
23       transfer of records on appeal; and                                                                                
24                 (6)  prepare an annual budget of the commission.                                                        
25            (b)  The chair of the commission shall preside over hearings and arguments on                                
26       appeals.  The chair of the commission shall ensure that all functions of the commission                           
27       are performed with due regard for the rights of all parties and consistent with the                               
28       orderly and prompt resolution of appeals.  The chair of the commission shall rule on                              
29       questions of procedure and advise the representative members of the commission on                                 
30       matters of law.                                                                                                   
31            (c)  The chair of the commission shall, not later than March 15 of each year,                                

01       make available to the public and file with the lieutenant governor, a report regarding                            
02       the commission, including data regarding time periods between initial receipt and final                           
03       decisions on appeals.                                                                                             
04            (d)  The chair of the commission shall devote full time to the duties of the chair                           
05       of the commission and may not engage in any other employment or business.  The                                    
06       chair of the commission may not hold any other office or position under the United                                
07       States, this state, any municipality or political subdivision of this state, or any tribal                        
08       government or corporation.  The chair of the commission may not hold office or                                    
09       position in a partisan political organization or party.                                                           
10    * Sec. 11.  AS 23.30.012 is amended to read:                                                                       
11            Sec. 23.30.012.  Agreements in regard to claims.  (a)  At any time after                                 
12       death, or after 30 days subsequent to the date of the injury, the employer and the                                
13       employee or the beneficiary or beneficiaries, as the case may be, have the right to                               
14       reach an agreement in regard to a claim for injury or death under this chapter [IN                                
15       ACCORDANCE WITH THE APPLICABLE SCHEDULE IN THIS CHAPTER], but                                                     
16       a memorandum of the agreement in a form prescribed by the director [BOARD] shall                              
17       be filed with the division [BOARD].  Otherwise, the agreement is void for any                                 
18       purpose.  Except as provided in (b) of this section, an agreement filed with the                              
19       division discharges the liability of the employer for the compensation,                                       
20       notwithstanding the provisions of AS 23.30.130, 23.30.160, and 23.30.245, and is                              
21       enforceable as a compensation order.                                                                          
22            (b)  If the claimant or beneficiary is not represented by an attorney                                    
23       licensed to practice in this state, or the beneficiary is a minor or incompetent, the                         
24       agreement shall be reviewed by a panel of the board.  If approved by the board, the                           
25       agreement is enforceable the same as an order or award of the board and discharges                                
26       the liability of the employer for the compensation notwithstanding the provisions of                              
27       AS 23.30.130, 23.30.160, and 23.30.245.  The agreement shall be approved by the                                   
28       board only when the terms conform to the provisions of this chapter and, if it involves                           
29       or is likely to involve permanent disability, the board may require an impartial medical                          
30       examination and a hearing in order to determine whether or not to approve the                                     
31       agreement.  A [THE BOARD MAY APPROVE] lump-sum settlement may be                                          

01       approved [SETTLEMENTS] when it appears to be to the best interest of the                                      
02       employee or beneficiary or beneficiaries.                                                                         
03    * Sec. 12.  AS 23.30.015(e) is amended to read:                                                                    
04            (e)  An amount recovered by the employer under an assignment, whether by                                     
05       action or compromise, shall be distributed as follows:                                                            
06                 (1)  the employer shall retain an amount equal to                                                       
07                      (A)  the expenses incurred by the employer with respect to the                                     
08            action or compromise, including a reasonable attorney fee determined by the                                  
09            board;                                                                                                       
10                      (B)  the cost of all benefits actually furnished by the employer                                   
11            under this chapter;                                                                                          
12                      (C)  all amounts paid as compensation [AND SECOND-                                                 
13            INJURY FUND] payments, and, if the employer is self-insured or uninsured,                                    
14            all service fees paid under AS 23.05.067;                                                                    
15                      (D)  the present value of all amounts payable later as                                             
16            compensation, computed from a schedule prepared by the board; and the                                        
17            present value of the cost of all benefits to be furnished later under                                        
18            AS 23.30.095 as estimated by the board; the amounts so computed and                                          
19            estimated to be retained by the employer as a trust fund to pay compensation                                 
20            and the cost of benefits as they become due and to pay any finally remaining                                 
21            excess sum to the person entitled to compensation or to the representative; and                              
22                 (2)  the employer shall pay any excess to the person entitled to                                        
23       compensation or to the representative of that person.                                                             
24    * Sec. 13.  AS 23.30.041(a) is amended to read:                                                                    
25            (a)  The director [BOARD] shall select and employ a reemployment benefits                                
26       administrator.  The director [BOARD] may authorize the administrator to select and                            
27       employ additional staff.  The administrator is in the partially exempt service under                              
28       AS 39.25.120.                                                                                                     
29    * Sec. 14.  AS 23.30.041(c) is repealed and reenacted to read:                                                     
30            (c)  An employee and an employer may stipulate to the employee's eligibility                                 
31       for reemployment benefits at any time.  If an employee suffers a compensable injury                               

01       and, as a result of the injury, the employee for 45 consecutive days is totally unable to                         
02       return to the employee's employment at the time of injury, the administrator shall                                
03       notify the employee of the employee's rights under this section within 14 days after the                          
04       45th day.  If the employee is totally unable to return to the employee's employment for                           
05       60 consecutive days as a result of the injury, the employee or employer may request an                            
06       eligibility evaluation.  The administrator may approve the request if the employee's                              
07       injury may permanently preclude the employee's return to the employee's occupation                                
08       at the time of the injury.  If the employee is totally unable to return to the employee's                         
09       employment at the time of the injury for 90 consecutive days as a result of the injury,                           
10       the administrator shall order an eligibility evaluation, without a request, unless a                              
11       stipulation of eligibility was submitted.  If the administrator approves a request or                             
12       orders an evaluation, the administrator shall, on a rotating and geographic basis, select                         
13       a rehabilitation specialist from the list maintained under (b)(6) of this section to                              
14       perform the eligibility evaluation.                                                                               
15    * Sec. 15.  AS 23.30.041(f) is amended to read:                                                                    
16            (f)  An employee is not eligible for reemployment benefits if                                                
17                 (1)  the employer offers employment within the employee's predicted                                     
18       post-injury physical capacities at a wage equivalent to at least the state minimum wage                           
19       under AS 23.10.065 or 75 percent of the worker's gross hourly wages at the time of                                
20       injury, whichever is greater, and the employment prepares the employee to be                                      
21       employable in other jobs that exist in the labor market;                                                          
22                 (2)  the employee previously declined the development of a                                          
23       reemployment benefits plan under (g) of this section, received a job dislocation                              
24       benefit under (g)(2) of this section, and returned to work in the same or similar                             
25       occupation in terms of physical demands required of the employee at the time of                               
26       the previous injury;                                                                                          
27                 (3)  the employee has been previously rehabilitated in a former                                     
28       worker's compensation claim and returned to work in the same or similar occupation                                
29       in terms of physical demands required of the employee at the time of the previous                                 
30       injury; or                                                                                                        
31                 (4) [(3)]  at the time of medical stability no permanent impairment is                              

01       identified or expected.                                                                                           
02    * Sec. 16.  AS 23.30.041(g) is amended to read:                                                                    
03            (g)  Within 15 days after the employee receives the administrator's notification                             
04       of eligibility for benefits, an employee [WHO DESIRES TO USE THESE                                                
05       BENEFITS] shall give written notice under oath, on a form provided by the                                     
06       division, to the administrator and the employer of the employee's election to                             
07       either use the reemployment benefits or to accept a job dislocation benefit under                             
08       (2) of this subsection.  The following apply to an election under this subsection:                            
09                 (1)  An employee who elects to use the reemployment benefits also                                   
10       shall notify the employer of the employee's selection of a rehabilitation specialist who                      
11       shall provide a complete reemployment benefits plan.  Failure to give notice of                               
12       selection of a rehabilitation specialist required by this paragraph [SUBSECTION]                          
13       constitutes noncooperation under (n) of this section.  If the employer disagrees with                             
14       the employee's choice of rehabilitation specialist to develop the plan and the                                    
15       disagreement cannot be resolved, then the administrator shall assign a rehabilitation                             
16       specialist.  The employer and employee each have one right of refusal of a                                        
17       rehabilitation specialist.                                                                                        
18                 (2)  An employee who elects to accept a job dislocation benefit in                                  
19       place of reemployment benefits and who has been given a permanent partial                                     
20       impairment rating by a physician shall be paid                                                                
21                      (A)  $5,000 if the employee's permanent partial impairment                                     
22            rating is greater than 0 and less than 15 percent;                                                       
23                      (B)  $8,000 if the employee's permanent partial impairment                                     
24            rating is 15 percent or greater but less than 30 percent; or                                             
25                      (C)  $13,500 if the employee's permanent partial                                               
26            impairment rating is 30 percent or greater.                                                              
27                 (3)  The form provided by the division for election shall specifiy                                  
28       that the employee understands the scope of the benefits and rights being waived                               
29       by the election.  The administrator shall serve a copy of the executed election                               
30       form on the parties within 10 days after receiving the form from the employee.                                
31       The election and waiver of unchosen benefits is effective upon service to the                                 

01       parties.  A waiver and election effective under this subsection discharges the                                
02       employer's liability for the benefits or rights under this section that were not                              
03       elected.  A waiver may not be modified under AS 23.30.130.                                                    
04    * Sec. 17.  AS 23.30.041(j) is amended to read:                                                                    
05            (j)  The employee, rehabilitation specialist, and the employer shall sign the                                
06       reemployment benefits plan.  If the employer and employee fail to agree on a                                      
07       reemployment plan, either party may submit a reemployment plan for approval to the                                
08       administrator; the administrator shall approve or deny a plan within 14 days after the                            
09       plan is submitted; within 10 days after [OF] the decision, either party may seek                              
10       review of the decision by requesting a hearing under AS 23.30.110; the board shall                                
11       uphold the decision of the administrator unless evidence is submitted supporting an                               
12       allegation of abuse of discretion on the part of the administrator; the board shall render                        
13       a decision within 30 days after completion of the hearing.                                                        
14    * Sec. 18.  AS 23.30.041(p) is amended to read:                                                                    
15            (p)  When the United States Department of Labor publishes a new edition,                                     
16       revision, or replacement for the "Selected Characteristics of Occupations Defined in                              
17       the Revised Dictionary of Occupational Titles" referred to in (e) of this section, the                            
18       director [BOARD] shall, not later than 90 days after the last day of the month in                             
19       which the new edition, revision, or replacement standard is published, hold an open                               
20       meeting under AS 44.62.310 to select the proposed date on which the new edition,                              
21       revision, or replacement standard will be implemented to make all eligibility                                     
22       determinations required under (e) of this section.  The date selected by the                                      
23       department [BOARD] for implementing the new edition, revision, or replacement                                 
24       standard may not be later than 90 days after the last day of the month in which the new                           
25       edition, revision, or replacement standard is published.  After the meeting, the                                  
26       director [BOARD] shall issue a public notice announcing the date selected by the                          
27       department.  The requirements of AS 44.62.010 - 44.62.300 do not apply to the                                 
28       selection or announcement of the date under this subsection.                                                      
29    * Sec. 19.  AS 23.30.041(q) is amended to read:                                                                    
30            (q)  Notwithstanding AS 23.30.012, after medical stability has been determined                               
31       and a physician has predicted that the employee may have a permanent impairment                                   

01       that may cause the employee to have permanent physical capacities that are less than                              
02       the physical demands of the employee's job at the time of injury, an employee may                                 
03       waive any benefits or rights under this section, including an eligibility evaluation and                          
04       benefits related to a reemployment plan.  To waive any benefits or rights under this                              
05       section, an employee must file a statement under oath with the division [BOARD] to                            
06       notify the parties of the waiver and to specify the scope of benefits or rights that the                          
07       employee seeks to waive.  The statement must be on a form prescribed or approved by                               
08       the director [BOARD].  The division [BOARD] shall serve the notice of waiver on                           
09       all parties to the claim within 10 days after filing.  The waiver is effective upon service                       
10       to the party.  A waiver effective under this subsection discharges the liability of the                           
11       employer for the benefits or rights contained in this section.  The waiver may not be                             
12       modified under AS 23.30.130.                                                                                      
13    * Sec. 20.  AS 23.30.080(d) is amended to read:                                                                    
14            (d)  If an employer fails to insure or provide security as required by                                       
15       AS 23.30.075, the division may petition the board to [MAY] issue a stop order                             
16       prohibiting the use of employee labor by the employer until the employer insures or                               
17       provides security as required by AS 23.30.075.  The failure of an employer to file                                
18       evidence of compliance as required by AS 23.30.085 creates a rebuttable presumption                               
19       that the employer has failed to insure or provide security as required by AS 23.30.075.                           
20       If an employer fails to comply with a stop order issued under this section, the board                             
21       shall assess a civil penalty of $1,000 per day.  The employer may not obtain a public                             
22       contract with the state or a political subdivision of the state for three years following                         
23       the violation of the stop order.                                                                                  
24    * Sec. 21.  AS 23.30.080 is amended by adding new subsections to read:                                             
25            (e)  If a representative of the department investigates an employer's failure to                             
26       file the evidence of compliance required by AS 23.30.085 and, after investigation,                                
27       there is substantial evidence that the employer failed to insure or provide security as                           
28       required by AS 23.30.075, the representative shall inform the employer.  The                                      
29       representative may request the director to issue a stop order prohibiting the use of                              
30       employee labor by the employer until the employer insures or provides security as                                 
31       required by AS 23.30.075.  The director may issue a stop order, without a hearing,                                

01       based on the representative's investigation.  The director shall dissolve a stop order                            
02       issued under this subsection upon receipt of substantial evidence that the employer is                            
03       insured or has provided security as required by AS 23.30.075(a).  If an employer fails                            
04       to comply with a stop order issued under this subsection, the division may petition the                           
05       board to assess a civil penalty.  The board may assess a civil penalty of $1,000 per                              
06       day.  An employer who is assessed a penalty under this subsection may not obtain a                                
07       public contract with the state or a political subdivision of the state for the three years                        
08       following violation of the stop order.                                                                            
09            (f)  If an employer fails to insure or provide security as required by                                       
10       AS 23.30.075, the division may petition the board to assess a civil penalty of up to                              
11       $1,000 for each employee for each day an employee is employed while the employer                                  
12       failed to insure or provide the security required by AS 23.30.075.  The failure of an                             
13       employer to file evidence of compliance as required by AS 23.30.085 creates a                                     
14       rebuttable presumption that the employer failed to insure or provide security as                                  
15       required by AS 23.30.075.                                                                                         
16            (g)  If an employer fails to pay a civil penalty order issued under (d), (e), or (f)                         
17       of this section within seven days after the date of service of the order upon the                                 
18       employer, the director may declare the employer in default.  The director shall file a                            
19       certified copy of the penalty order and declaration of default with the clerk of the                              
20       superior court.  The court shall, upon the filing of the copy of the order and                                    
21       declaration, enter judgment for the amount declared in default if it is in accordance                             
22       with law.  Anytime after a declaration of default, the attorney general, when requested                           
23       to do so by the director, shall take appropriate action to assure collection of the                               
24       defaulted payment.  Review of the judgment may be had as provided under the Alaska                                
25       Rules of Civil Procedure.  Final proceedings to execute the judgment may be had by                                
26       writ of execution.                                                                                                
27    * Sec. 22.  AS 23.30 is amended by adding a new section to read:                                                   
28            Sec. 23.30.082.  Workers' compensation benefits guaranty fund.  (a) The                                    
29       workers' compensation benefits guaranty fund is established in the general fund to                                
30       carry out the purposes of this section.  The fund is composed of civil penalty payments                           
31       made by employers under AS 23.30.080, income earned on investment of the money                                    

01       in the fund, money deposited in the fund by the department, and appropriations to the                             
02       fund.  Money appropriated to the fund does not lapse.  Amounts in the fund may be                                 
03       appropriated for claims against the fund, for expenses directly related to fund                                   
04       operations and claims, and for legal expenses.                                                                    
05            (b)  The Department of Revenue shall provide the division every three months                                 
06       with a statement of the activities of, balances in, interest earned on, and interest                              
07       returned to the fund.                                                                                             
08            (c)  Subject to the provisions of this section, an employee employed by an                                   
09       employer who fails to meet the requirements of AS 23.30.075 and who fails to pay                                  
10       compensation and benefits due to the employee under this chapter, may file a claim for                            
11       payment by the fund.  In order to be eligible for payment, the claim form must be filed                           
12       within the same time, and in the same manner, as a workers' compensation claim.  The                              
13       fund may assert the same defenses as an insured employer under this chapter.                                      
14            (d)  If the fund pays benefits to an employee under this section, the fund shall                             
15       be subrogated to all of the rights of the employee to the amount paid, and the                                    
16       employee shall assign all right, title, and interest in that portion of the employee's                            
17       workers' compensation claim and any recovery under AS 23.30.015 to the fund.                                      
18       Money collected by the division on the claim or recovery shall be deposited in the                                
19       fund.                                                                                                             
20            (e)  If the money deposited in the fund is insufficient at a given time to satisfy                           
21       a duly authorized claim against the fund, the fund shall, when sufficient money has                               
22       been deposited in the fund and appropriated, satisfy unpaid claims in the order in                                
23       which the claims were originally filed, without interest.                                                         
24            (f)  The division may contract under AS 36.30 (State Procurement Code) with                                  
25       a person for the person to adjust claims against the fund.  The contract may cover one                            
26       or more claims.                                                                                                   
27            (g)  In this section, "fund" means the workers' compensation benefits guaranty                               
28       fund.                                                                                                             
29    * Sec. 23.  AS 23.30.095(j) is amended to read:                                                                    
30            (j)  The commissioner shall [BOARD MAY] appoint a medical services                                       
31       review committee, or contract with an existing organization in the state or another                               

01       state, to assist and advise the department and the board in matters involving the                             
02       appropriateness, necessity, and cost of medical and related services provided under                               
03       this chapter.                                                                                                     
04    * Sec. 24.  AS 23.30.095 is amended by adding new subsections to read:                                             
05            (n)  A generic drug product must be used when dispensing a drug product to an                                
06       employee under this chapter unless the prescribing physician provides justification in                            
07       writing explaining the medical necessity for the name brand drug product.  The                                    
08       department by regulation shall establish a preferred drug list and a procedure for                                
09       establishing medical necessity to depart from the list and to use a name brand drug                               
10       product.  In this subsection, "generic drug product" has the meaning given the term                               
11       "equivalent drug product" in AS 08.80.480.                                                                        
12            (o)  For purposes of this chapter, the medical treatment or services which the                               
13       nature of the injury or the process of recovery requires, required by (a) of this section,                        
14       means treatment or services that are within the recommended guidelines set out in the                             
15       American College of Occupational and Environmental Medicine's Occupational                                        
16       Medicine Practice Guidelines in effect at the time the treatment or service is provided.                          
17       The American College of Occupational and Environmental Medicine's Occupational                                    
18       Medicine Practice Guidelines shall be presumed correct on the issue of the nature,                                
19       extent, and scope of medical treatment or services.  The presumption may be rebutted                              
20       by a preponderance of scientific evidence establishing that a variance from the                                   
21       guidelines is reasonably required by the nature of the injury or the process of recovery.                         
22       For an injury not covered by the American College of Occupational and                                             
23       Environmental Medicine's Occupational Medicine Practice Guidelines, the treatment                                 
24       or services shall be in accordance with standards based on other scientific, evidence-                            
25       based medical treatment guidelines generally recognized by the national medical                                   
26       community and adopted by the board by regulation.                                                                 
27    * Sec. 25.  AS 23.30 is amended by adding a new section to read:                                                   
28            Sec. 23.30.097.  Fees for medical treatment and services; payment of bills.                                
29       (a) All fees and other charges for medical treatment or service are subject to regulation                         
30       by the board consistent with this section.  A fee or other charge for medical treatment                           
31       or service may not exceed the lesser of                                                                           

01                 (1)  the usual, customary, and reasonable fees for the treatment or                                     
02       service in the community in which it is rendered, not to exceed the fees in the fee                               
03       schedule specified by the board in its published bulletin dated  December 15, 1999; or                            
04                 (2)  the payment made by the employer as negotiated by the provider                                     
05       and the employer under (c) of this section.                                                                       
06            (b)  An employer, or group of employers, may establish a list of preferred                                   
07       physicians and treatment service providers to provide medical, surgical, and other                                
08       attendance or treatment services to the employer's employees under this chapter;                                  
09       however,                                                                                                          
10                 (1)  the employee's right to chose the employee's attending physician                                   
11       under AS 23.30.095(a) is not impaired;                                                                            
12                 (2)  when given to the employee, the employer's preferred physician list                                
13       shall clearly state that the list is voluntary, that the employee's choice is not restricted                      
14       to the list, that the employee's rights under this chapter are not impaired by choosing                           
15       an attending physician from the list, and that if the employee chooses an attending                               
16       physician from the list, the employee may, in the manner provided in AS 23.30.095,                                
17       make one change of attending physician, from the list or otherwise; and                                           
18                 (3)  establishment of a list of preferred physicians does not affect the                                
19       employer's choice of physician for an employer medical examination under                                          
20       AS 23.30.095.                                                                                                     
21            (c)  An employer, or group of employers, may negotiate with physicians and                                   
22       other treatment service providers under this chapter to obtain reduced fees and service                           
23       charges, and may take such fees and charges into account when forming a list of                                   
24       preferred physicians and providers.  In no event may an employer, or group of                                     
25       employers, attempt to influence the treatment, medical decisions, or permanent                                    
26       impairment ratings by physicians in the course of the negotiations regarding a                                    
27       preferred physician and provider fee list.                                                                        
28            (d)  An employer shall pay an employee's bills for medical treatment under this                              
29       chapter, excluding prescription charges or transportation for medical treatment, within                           
30       30 days after the date that the employer receives the provider's bill or a completed                              
31       report as required by AS 23.30.095(c), whichever is later.                                                        

01            (e)  Unless the employer controverts a charge, an employer shall reimburse an                                
02       employee's prescription charges under this chapter within 30 days after the employer                              
03       received the health care provider's completed report and an itemization of the                                    
04       prescription charges for the employee.  Unless the employer controverts a charge, an                              
05       employer shall reimburse any transportation expenses for medical treatment under this                             
06       chapter within 30 days after the employer received the health care provider's                                     
07       completed report and an itemization of the dates, destination, and transportation                                 
08       expenses for each date of travel for medical treatment.  If the employer does not plan                            
09       to make or does not make payment or reimbursement in full as required by this                                     
10       subsection, the employer shall notify in writing the employee and the employee's                                  
11       health care provider that payment will not be timely made and the reasons for the                                 
12       nonpayment.  The notification must be provided on or before the date that payment is                              
13       due under this subsection or (d) of this section.                                                                 
14            (f)  An employee may not be required to pay a fee or charge for medical                                      
15       treatment or service provided under this chapter.                                                                 
16    * Sec. 26.  AS 23.30.100(b) is amended to read:                                                                    
17            (b)  The notice must be in writing and [,] contain the name and address of the                           
18       employee, [AND] a statement of the time, place, nature, and cause of the injury or                            
19       death, authority to release records of medical treatment for the injury or death,                             
20       and be signed by the employee or by a person on behalf of the employee, or in case of                             
21       death, by a person claiming to be entitled to compensation for the death or by a person                           
22       on behalf of that person.                                                                                         
23    * Sec. 27.  AS 23.30.107(b) is amended to read:                                                                    
24            (b)  Medical or rehabilitation records in an employee's file maintained by the                               
25       division or held by the commission or the board are not public records subject to                             
26       public inspection and copying under AS 40.25.  This subsection does not prohibit                                  
27                 (1)  the reemployment benefits administrator, the division, the office of                           
28       the commission, the 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 board or the commission.                                                          
04    * Sec. 28.  AS 23.30.107 is amended by adding a new subsection to read:                                            
05            (c)  The division may not assemble, or provide information respecting,                                       
06       individual records for commercial purposes that are outside the scope of this chapter.                            
07    * Sec. 29.  AS 23.30.122 is repealed and reenacted to read:                                                        
08            Sec. 23.30.122.  Credibility of witnesses.  The board has the sole power to                                
09       determine the credibility of testimony presented by a witness.  When credibility is                               
10       disputed in a proceeding before the board, the board's determination of credibility                               
11       must be supported by specific findings.                                                                           
12    * Sec. 30.  AS 23.30.125 is repealed and reenacted to read:                                                        
13            Sec. 23.30.125.  Administrative review of compensation order.  (a)  A                                      
14       compensation order becomes effective when filed with the office of the board as                                   
15       provided in AS 23.30.110, and, unless proceedings to reconsider, suspend, or set aside                            
16       the order are instituted as provided in this chapter, the order becomes final on the 31st                         
17       day after it is filed.                                                                                            
18            (b)  Notwithstanding other provisions of law, a decision or order of the board is                            
19       subject to review by the commission as provided in this chapter.                                                  
20            (c)  If a compensation order is not in accordance with law or fact, the order                                
21       may be suspended or set aside, in whole or in part, through proceedings in the                                    
22       commission brought by a party in interest against all other parties to the proceedings                            
23       before the board.  The payment of the amounts required by an award may not be                                     
24       stayed pending a final decision in the proceeding unless, upon application for a stay,                            
25       the commission, on hearing, after not less than three days' notice to the parties in                              
26       interest, allows the stay of payment, in whole or in part, where the party filing the                             
27       application would otherwise suffer irreparable damage.  Continuing future periodic                                
28       compensation payments may not be stayed without a showing by the appellant of                                     
29       irreparable damage and the existence of the probability of the merits of the appeal                               
30       being decided adversely to the recipient of compensation.  The order of the                                       
31       commission allowing a stay must contain a specific finding, based upon evidence                                   

01       submitted to the commission and identified by reference to the evidence, that                                     
02       irreparable damage would result to the party applying for a stay and specifying the                               
03       nature of the damage.                                                                                             
04            (d)  Proceedings for reconsidering, suspending, setting aside, or enforcing a                                
05       compensation order, whether rejecting a claim or making an award, may not be                                      
06       instituted, except as provided in this chapter.                                                                   
07    * Sec. 31.  AS 23.30 is amended by adding new sections to read:                                                    
08            Sec. 23.30.127.  Appeals to commission.  (a)  A party in interest may appeal a                             
09       compensation order issued by the board to the commission within 30 days after the                                 
10       compensation order is filed with the office of the board under AS 23.30.110.  The                                 
11       director may intervene in an appeal.  If a party in interest is not represented by counsel                        
12       and the compensation order concerns an unsettled question of law, the director may                                
13       file an appeal to obtain a ruling on the question by the commission.                                              
14            (b)  An appeal is initiated by filing with the office of the commission                                      
15                 (1)  a signed notice of appeal specifying the compensation order                                        
16       appealed from;                                                                                                    
17                 (2)  a statement of the grounds upon which the appeal is taken; and                                     
18                 (3)  other material the commission may by regulation require.                                           
19            (c)  A cross-appeal may be initiated by filing with the office of the commission                             
20       a signed notice of cross-appeal within 30 days after the decision is filed or within 15                           
21       days after service of notice of an appeal, whichever is later.  The notice of cross-                              
22       appeal shall specify the compensation order appealed from and the grounds upon                                    
23       which the cross-appeal is taken.                                                                                  
24            (d)  The office of the commission may charge a fee, not to exceed $100, for                                  
25       filing appeals and cross-appeals, except that the office of the commission may not                                
26       charge a fee if the appellant is the state or a political subdivision of the state.  The                          
27       commission may require an appellant to pay the costs of the transcript of hearing and                             
28       the preparation of the record on appeal.  The commission may require cross-appellants                             
29       or intervenors to share in the costs.                                                                             
30            (e)  If a request for reconsideration of a board decision was timely filed with                              
31       the office of the board, the notice of appeal must be filed within 30 days after the                              

01       reconsideration decision is mailed to the parties, or the date the request for                                    
02       reconsideration is considered denied in the absence of any action on the request,                                 
03       whichever is earlier.                                                                                             
04            (f)  The commission may require written briefs and make other rules and                                      
05       orders to facilitate the business of the commission and advance the prompt, fair, and                             
06       just disposition of appeals.                                                                                      
07            Sec. 23.30.128.  Commission proceedings.  (a)  An appeal from a decision of                                
08       the board under this chapter, and other proceedings under this section, shall be heard                            
09       and decided by a three-member panel of the commission.  An appeal panel of the                                    
10       commission must include the chair of the commission.  The chair of the commission                                 
11       shall assign two members to each appeal, including one commission member                                          
12       classified as representing employees and one commission member classified as                                      
13       representing employers.  Acts, decisions, and orders of the commission panel in the                               
14       appeal or related proceeding shall be considered the acts, decisions, and orders of the                           
15       full commission.  The matter on appeal shall be decided on the record made before the                             
16       board, a transcript or recording of the proceedings before the board, and oral argument                           
17       and written briefs allowed by the commission.  Except as provided in (c) of this                                  
18       section, new or additional evidence may not be received with respect to the appeal.                               
19            (b)  The commission may review de novo all discretionary actions, findings of                                
20       fact, and conclusions of law by the board in hearing, determining, or otherwise acting                            
21       on any compensation claim or petition.  The board's findings regarding the credibility                            
22       of testimony of a witness are binding on the commission.  The findings of the board, if                           
23       not set aside by the commission, are conclusive.                                                                  
24            (c)  The commission may hold hearings and receive evidence on applications                                   
25       for (1) stays under AS 23.30.125; (2) attorney fees and costs of appeal; (3) waiver of                            
26       fees by indigent appellants; or (4) dismissal of appeals for failure to prosecute or upon                         
27       settlement.  The commission may rely on new or additional evidence presented during                               
28       the hearing in making its decision on the application.                                                            
29            (d)  The commission may affirm, reverse, or modify a decision or order upon                                  
30       review and issue other orders as appropriate.  The commission may remand matters it                               
31       determines were improperly, incompletely, or otherwise insufficiently developed.  The                             

01       commission may remand for further proceedings and appropriate action with or                                      
02       without relinquishing the commission's jurisdiction of the appeal.  The administrative                            
03       adjudication procedures of AS 44.62 (Administrative Procedure Act) do not apply to                                
04       the proceedings of the commission.                                                                                
05            (e)  Within 90 days after written briefing on the appeal is completed or oral                                
06       argument is held, whichever is later, the commission shall issue a decision in writing.                           
07       The decision must contain a concise statement of reasons for the decision, including                              
08       findings of fact, if required, and conclusions of law.  The commission shall serve each                           
09       party and the director with a copy of the decision.  Appeals may be expedited for good                            
10       cause by the commission.  Unless reconsideration is ordered under (f) of this section, a                          
11       decision under this subsection is the final commission decision.                                                  
12            (f)  A party or the director may request reconsideration of a decision issued                                
13       under (e) of this section within 30 days after the date of service shown in the                                   
14       certificate of service of the decision.  The request must state specific grounds for                              
15       reconsideration.  Reconsideration may be granted if, in reaching the decision, the                                
16       commission (1) overlooked, misapplied, or failed to consider a statute, regulation,                               
17       court or administrative decision, or legal principle directly controlling; (2) overlooked                         
18       or misconceived a material fact; (3) misconceived a material question in the case; or                             
19       (4) applied law in the ruling that has subsequently changed.  The panel of the                                    
20       commission hearing the request for reconsideration shall consist of the same members                              
21       of the panel that issued the decision.  The commission may issue an order for                                     
22       reconsideration of all or part of the decision upon request of a party or the director.                           
23       Reconsideration is based on the record, unless the commission allows additional                                   
24       argument.  The power to order reconsideration expires 60 days after the date of                                   
25       service, as shown on the certificate of service, of a decision issued under (e) of this                           
26       section.  If the commission does not issue an order for reconsideration within the time                           
27       allowed for ordering reconsideration, a request for reconsideration is considered                                 
28       denied.  If reconsideration is ordered, the commission shall issue a decision within 30                           
29       days after the close of the record on reconsideration.  The commission shall serve each                           
30       party in the case with a copy of the decision upon reconsideration.  The decision upon                            
31       reconsideration is the final commission decision.                                                                 

01            (g)  A decision of the commission becomes final on the                                                       
02                 (1)  31st day after the date of service of a decision if reconsideration is                             
03       not requested;                                                                                                    
04                 (2)  61st day after the date of service of a decision if reconsideration is                             
05       requested but an order for reconsideration is not issued; or                                                      
06                 (3)  date of service of the commission decision upon reconsideration                                    
07       under (f) of this section if reconsideration is requested and an order for reconsideration                        
08       is issued.                                                                                                        
09            Sec. 23.30.129.  Judicial review of commission orders.  (a)  Notwithstanding                               
10       the provisions of AS 44.62.560, orders of the commission may not be appealed to the                               
11       superior court.  Consistent with AS 22.05.010(b), final decisions of the commission                               
12       may be appealed to the supreme court, and other orders may be reviewed by the                                     
13       supreme court as provided by the Alaska Rules of Appellate Procedure.                                             
14            (b)  A finding by the commission concerning the weight to be accorded a                                      
15       witness's testimony, including medical testimony and reports, is conclusive even if the                           
16       evidence is conflicting or susceptible to contrary conclusions.  The commission's                                 
17       findings of fact may be reversed on appeal if not supported by substantial evidence in                            
18       light of the whole record.                                                                                        
19    * Sec. 32.  AS 23.30.175(b) is amended to read:                                                                    
20            (b)  The following rules apply to benefits payable to recipients not residing in                             
21       the state at the time compensation benefits are payable:                                                          
22                 (1)  the weekly rate of compensation shall be calculated by multiplying                                 
23       the recipient's weekly compensation rate calculated under AS 23.30.180, 23.30.185,                                
24       23.30.190, 23.30.200, or 23.30.215 [,] by the ratio of the cost of living of the area in                          
25       which the recipient resides to the cost of living in this state;                                                  
26                 (2)  the calculation required by (1) of this subsection does not apply if                               
27       the recipient is absent from the state for medical or rehabilitation services not                                 
28       reasonably available in the state;                                                                                
29                 (3)  if the gross weekly earnings of the recipient and the resulting                                    
30       compensation rate are determined under AS 23.30.220(a)(6), (7), or (10), the                                      
31       calculation required by this subsection applies only to the portion of the recipient's                            

01       weekly compensation rate attributable to wages earned in the state;                                               
02                 (4)  application of this subsection may not reduce the weekly                                           
03       compensation rate to less than $154 a week, except as provided in (a) of this section;                        
04                 (5)  application of (1) - (4) of this subsection may not result in                                  
05       raising a recipient's weekly compensation rate to an amount that exceeds the                                  
06       weekly compensation rate that the recipient would have received if the recipient                              
07       had been residing in the state.                                                                               
08    * Sec. 33.  AS 23.30.175(c) is amended to read:                                                                    
09            (c)  The department [BOARD] shall provide by regulation for the                                          
10       determination and comparison of living costs for this state and the other areas in which                          
11       recipients reside and for the [ANNUAL] redetermination and comparison of these                                    
12       costs every three years.                                                                                      
13    * Sec. 34.  AS 23.30.205(e) is amended to read:                                                                    
14            (e)  The second injury fund may not be bound as to any question of law or fact                               
15       by reason of an award or an adjudication to which it was not a party or in relation to                            
16       which the director [COMMISSIONER] was not notified at least three weeks before                                
17       the award or adjudication, that the fund might be subject to liability for the injury or                          
18       death.                                                                                                            
19    * Sec. 35.  AS 23.30.205 is amended by adding a new subsection to read:                                            
20            (g)  Claims for reimbursement may not be submitted to the fund after                                         
21       September 1, 2005.  The fund shall continue to make reimbursement payments on                                     
22       claims accepted before July 1, 2006, or ordered by the board, until the fund's liabilities                        
23       for the claim are extinguished.                                                                                   
24    * Sec. 36.  AS 23.30 is amended by adding a new section to read:                                                   
25            Sec. 23.30.224.  Coordination of benefits.  (a) Notwithstanding other                                      
26       provisions of this chapter, an employer's liability for payment of weekly compensation                            
27       under AS 23.30.180 or 23.30.185 to an employee eligible for a disability benefit under                            
28       AS 14.25.130 or AS 39.35.400 or 39.35.410 may not exceed the lesser of                                            
29                 (1)  the difference between the disability benefit payable to the                                       
30       employee under AS 14.25.130 or AS 39.35.400 or 39.35.410, converted to a weekly                                   
31       basis, and 100 percent of the employee's spendable weekly wage as calculated under                                

01       AS 23.30.220; or                                                                                                  
02                 (2)  the maximum compensation rate calculated under AS 23.30.175.                                       
03            (b)  An employer's liability for payment of compensation under                                               
04       AS 23.30.041(k) to an employee eligible for a disability benefit payable under                                    
05       AS 14.25.130 or AS 39.35.400 or 39.35.410 may not exceed the lesser of                                            
06                 (1)  the difference between the disability benefit payable to the                                       
07       employee under AS 14.25.130 or AS 39.35.400 or 39.35.410, converted to a weekly                                   
08       basis, and 80 percent of the employee's spendable weekly wage as calculated under                                 
09       AS 23.30.220; or                                                                                                  
10                 (2)  105 percent of the average weekly wage caluclated under                                            
11       AS 23.30.175(d).                                                                                                  
12            (c)  Notwithstanding other provisions of this chapter, the liability of an                                   
13       employer for payment of compensation for an injury or illness under AS 23.30.180 or                               
14       23.30.185 to an employee who is covered by a union or group retirement system to                                  
15       which the employer makes contributions under a collective bargaining agreement, or                                
16       by membership in a welfare or pension plan or trust, may not not exceed the lesser of                             
17                 (1)  the difference between 100 percent of the employee's spendable                                     
18       weekly wage and an amount equal to the disability benefit, disability pension, or                                 
19       medical retirement benefit that the employee is eligible to receive as a result of the                            
20       injury or illness, as calculated on a weekly basis, under the retirement system or                                
21       welfare or pension plan or trust; or                                                                              
22                 (2)  the maximum compensation rate calculated under AS 23.30.175.                                       
23            (d)  If the union or group retirement system, pension plan, or trust referred to in                          
24       (c) of this section provides by its terms that its benefits are precluded or reduced if                           
25       benefits are awarded under this chapter, the limitation provided in (c)(1) of this section                        
26       is not applicable to the extent of the amount precluded or reduced.                                               
27            (e)  Notwithstanding other provisions of this chapter, the liability of an                                   
28       employer for payment of compensation for an injury or illness under AS 23.30.041(k)                               
29       to an employee who is covered by a union or group retirement system to which the                                  
30       employer makes contributions under a collective bargaining agreement, or by                                       
31       membership in a welfare or pension plan or trust, may not not exceed the lesser of                                

01                 (1)  the difference between 80 percent of the employee's spendable                                      
02       weekly wage and an amount equal to the disability benefit, disability pension, or                                 
03       medical retirement benefit that the employee is eligible to receive as a result of the                            
04       injury or illness, calculated on a weekly basis, under the retirement system or welfare                           
05       or pension plan or trust; or                                                                                      
06                 (2)  105 percent of the average weekly wage calculated under                                            
07       AS 23.30.175(d).                                                                                                  
08            (f)  If the union or group retirement system, pension plan, or trust referred to in                          
09       (e) of this section provides by its terms that its benefits are precluded or reduced if                           
10       benefits are awarded under this chapter, the limitation provided in (e)(1) of this section                        
11       is not applicable to the extent of the amount precluded or reduced.                                               
12            (g)  If the employee receives a lump sum distribution of disability benefits,                                
13       disability pension, or medical retirement benefits, the combined workers'                                         
14       compensation and weekly disability or medical retirement benefit specified in this                                
15       section shall be calculated by assuming that the employee received weekly disability                              
16       or medical retirement payments under the applicable plan from the date of eligibility                             
17       for the disability benefit or medical retirement until the total of such weekly payments                          
18       equals the amount of the lump sum, exclusive of that portion of the lump sum                                      
19       specifically set aside under the applicable plan for retraining expenses, medical and                             
20       transportation expenses, and attorney fees or other legal costs.                                                  
21    * Sec. 37.  AS 23.30.240 is amended to read:                                                                       
22            Sec. 23.30.240.  Officers of corporations, municipal corporations, and                                     
23       nonprofit corporations, and members of limited liability companies, as                                        
24       employees.  An executive officer elected or appointed and empowered in accordance                               
25       with the charter and bylaws of a corporation, other than an official of a municipal                               
26       corporation or a charitable, religious, educational, or other nonprofit corporation, is an                        
27       employee of the corporation under this chapter.  However, an executive officer of a                               
28       corporation may waive coverage under this chapter, subject to the approval of the                                 
29       director [COMMISSIONER OF LABOR AND WORKFORCE DEVELOPMENT],                                                   
30       notwithstanding AS 23.30.245(b).  Notwithstanding any other provision of this                                     
31       chapter, an executive officer of a municipal corporation or of a charitable, religious,                           

01       educational, or other nonprofit corporation may be brought within the coverage of its                             
02       insurance contract by the corporation by specifically including the officer in the                                
03       contract of insurance.  The election to bring an executive officer within the coverage                            
04       continues in force for the period the contract of insurance is in effect.  During that                            
05       period, an executive officer brought within the coverage of the insurance contract is an                      
06       employee of the corporation under this chapter.                                                                   
07    * Sec. 38.  AS 23.30.240 is amended by adding a new subsection to read:                                            
08            (b)  Except as provided in this subsection, a member of a limited liability                                  
09       company organized under AS 10.50 is not an employee of the company under this                                     
10       chapter.  Notwithstanding any other provision of this chapter, a limited liability                                
11       company may bring a member of the company within the coverage of the company's                                    
12       insurance contract by specifically including the member in the contract of insurance.                             
13       The election to bring the member within the company's coverage continues in force                                 
14       for the period the contract of insurance is in effect.  During that period, a member                              
15       brought within the coverage of the insurance contract is an employee of the company                               
16       under this chapter.                                                                                               
17    * Sec. 39.  AS 23.30.247(c) is amended to read:                                                                    
18            (c)  This section may not be construed to prohibit an employer from requiring a                              
19       prospective employee to fill out a preemployment questionnaire or application                                     
20       regarding the person's prior health or disability history as long as it is meant to                               
21       [EITHER DOCUMENT WRITTEN NOTICE FOR SECOND INJURY FUND                                                            
22       REIMBURSEMENT UNDER AS 23.30.205(c) OR] determine whether the employee                                            
23       has the physical or mental capacity to meet the documented physical or mental                                     
24       demands of the work.                                                                                              
25    * Sec. 40.  AS 23.30 is amended by adding a new section to read:                                                   
26            Sec. 23.30.249.  Fraudulent acts and false or misleading statements.  (a) An                               
27       employer, insurer, or other person may petition for an order to reimburse a payment                               
28       and the cost of compensation, medical treatment, or other benefit provided under this                             
29       chapter obtained by a fraudulent act or false or misleading statement or representation.                          
30       If the board, after a hearing as provided by AS 23.30.110, finds by a preponderance of                            
31       the evidence that a person has obtained a payment, compensation, medical treatment,                               

01       or another benefit provided under this chapter by a fraudulent act or by knowingly                                
02       making a false or misleading statement or representation for the purpose of obtaining                             
03       that benefit or payment, the board shall order that person to make full reimbursement                             
04       of the payment or cost of all benefits obtained.  Upon entry of an order authorized                               
05       under this subsection, the board shall also order that person to pay all reasonable costs                         
06       and attorney fees incurred in obtaining an order under this section and in defending                              
07       any fraudulent claim made for benefits under this chapter.  If a person fails to comply                           
08       with an order requiring reimbursement of payment or cost of benefits, and payment of                              
09       costs and attorney fees, the employer, insurer, or other party may declare the person in                          
10       default and proceed to collect any sum due in the same manner as provided under                                   
11       AS 23.30.170(b) and (c).                                                                                          
12            (b)  Except as provided in (c) of this section, a person is not liable for civil                             
13       damages for filing a report with or furnishing other information, whether written or                              
14       oral, concerning a suspected, anticipated, or completed fraudulent act or false or                                
15       misleading statements or representation to                                                                        
16                 (1)  law enforcement officials or their agents and employees;                                           
17                 (2)  the division of workers' compensation, the division of insurance in                                
18       the Department of Commerce, Community, and Economic Development, or an agency                                     
19       in another state that regulates insurance or workers' compensation;                                               
20                 (3)  an insurer or adjuster or its agents, employees, or designees, or the                              
21       risk manager of a self-insured employer under this chapter.                                                       
22            (c)  The provisions of (b) of this section do not preclude liability for civil                               
23       damages as described in (b) of this section if the liability arose as a result of reckless,                       
24       wilful, or intentional misconduct.                                                                                
25            (d)  An insurer, an adjuster, or a risk manager of a self-insured employer that                              
26       has reason to believe that a fraudulent workers' compensation demand or claim has                                 
27       been made against it shall send the director a report disclosing information that the                             
28       director may require.  An insurer or an adjuster or its employee or agent, or a risk                              
29       manager of a self-employed employer, or another person acting in good faith is not                                
30       civilly liable for damages resulting from the filing of the report or the furnishing of                           
31       information required by this section or by the director.                                                          

01            (e)  The director may investigate facts reported under this section and may                                  
02       refer facts indicating a possible violation of law to the appropriate prosecutor or                               
03       agency.  If the director determines that there is credible evidence that a person                                 
04       obtained a payment, compensation, medical treatment, or other benefit provided under                              
05       this chapter by a fraudulent act or false or misleading statement or representation as                            
06       provided in (a) of this section, the director shall notify the affected employer, insurer,                        
07       and adjuster upon conclusion of the investigation.  If the fraudulent act or false or                             
08       misleading statement or representation was perpetrated against the division, the                                  
09       director may file a petition as provided in AS 23.30.110 for an order of forfeiture                               
10       against the person, precluding, in whole or in part, the person from future payment,                              
11       compensation, medical treatment, or other benefit provided under this chapter.                                    
12            (f)  The papers, reports, documents, and evidence received under this section or                             
13       in an investigation arising from information received under this section are not subject                          
14       to public inspection for so long as the director considers confidentiality to be in the                           
15       public interest or reasonably necessary to complete an investigation or protect the                               
16       person investigated from unwarranted injury.  Papers, reports, documents, and                                     
17       evidence relative to an investigation under this section are confidential and not subject                         
18       to subpoena unless, after notice to the director and a hearing, a court determines that                           
19       the director would not be unduly hindered by public inspection.                                                   
20            (g)  If the material that the director seeks to obtain is located outside the state,                         
21       the material may be made available to the director to examine at the place where the                              
22       material is located.  The director may designate representatives, including officials of                          
23       the state in which the material is located, to inspect the material on behalf of the                              
24       director.  The director may respond to a request from an official of another state for                            
25       similar material.                                                                                                 
26            (h)  In this section, "fraudulent act" includes                                                              
27                 (1)  to knowingly pretend injury or disability, with intent to defraud or                               
28       obtain a benefit under this chapter;                                                                              
29                 (2)  to knowingly conceal, suppress, destroy, remove, or alter records,                                 
30       with intent to defraud or obtain a benefit under this chapter;                                                    
31                 (3)  to knowingly assist or prepare another person to submit a false or                                 

01       misleading statement in support of a claim for benefits under this chapter with reckless                          
02       disregard that the person is not entitled to benefits under this chapter;                                         
03                 (4)  to use force against a person, damage the property of a person, or                                 
04       threaten a person with intent to improperly influence the opinion of a witness, a                                 
05       physician, or other health care provider;                                                                         
06                 (5)  except as otherwise authorized under this chapter, to knowingly                                    
07       confer, offer to confer, solicit, agree to accept, or accept property, services, or a                             
08       benefit                                                                                                           
09                      (A)  to refer an employee to a physician or other health care                                      
10            provider; or                                                                                                 
11                      (B)  for providing medical treatment, services, medicines, or                                      
12            supplies to an employee if the property, services, or benefit is in addition to                              
13            payment by the employer, insurer, or adjuster allowed under this chapter.                                    
14    * Sec. 41.  AS 23.30.250 is repealed and reenacted to read:                                                        
15            Sec. 23.30.250.  Penalty for fraudulent acts or false or misleading                                        
16       statements or representations.  (a) A person is guilty of theft by deception as defined                         
17       in AS 11.46.180, and may be punished as provided by AS 11.46.120 - 11.46.150, and                                 
18       is civilly liable to a person adversely affected by the conduct, if the person                                    
19                 (1)  knowingly makes a false or misleading statement, representation,                                   
20       or submission related to an injury, compensation, or benefit under this chapter;                                  
21                 (2)  knowingly assists, abets, solicits, or conspires in making a false or                              
22       misleading submission affecting the payment, coverage, or other benefit under this                                
23       chapter;                                                                                                          
24                 (3)  knowingly misclassifies employees or engages in deceptive leasing                                  
25       practices for the purpose of evading full payment of workers' compensation insurance                              
26       premiums; or                                                                                                      
27                 (4)  employs or contracts with a natural person or business organization                                
28       to coerce or encourage an individual to file a fraudulent compensation claim.                                     
29            (b)  In this section,                                                                                        
30                 (1)  "benefit" means a payment, compensation, medical treatment,                                        
31       service, product, entitlement, or right available under this chapter;                                             

01                 (2)  "knowingly" has the meaning given in AS 11.81.900.                                                 
02    * Sec. 42.  AS 23.30.260 is amended by adding a new subsection to read:                                            
03            (b)  Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is                              
04       not required if the fee does not exceed $300 and is a one-time-only charge to an                                  
05       employee by an attorney licensed in this state who performed legal services with                                  
06       respect to the employee's claim but did not enter an appearance.                                                  
07    * Sec. 43.  AS 23.30.395 is amended by adding new paragraphs to read:                                              
08                 (35)  "commission" means the Workers' Compensation Appeals                                              
09       Commission;                                                                                                       
10                 (36)  "commissioner" means the commissioner of labor and workforce                                      
11       development;                                                                                                      
12                 (37)  "department" means the Department of Labor and Workforce                                          
13       Development;                                                                                                      
14                 (38)  "director" means the director of the division of workers'                                         
15       compensation in the department;                                                                                   
16                 (39)  "division" means the division of workers' compensation in the                                     
17       department.                                                                                                       
18    * Sec. 44.  AS 37.05.146(c) is amended by adding a new paragraph to read:                                          
19                 (78)  workers' compensation benefits guaranty fund (AS 23.30.082).                                      
20    * Sec. 45.  AS 39.25.110 is amended by adding a new paragraph to read:                                           
21                 (40)  the chair of the Workers' Compensation Appeals Commission                                         
22       (AS 23.30.007).                                                                                                   
23    * Sec. 46.  AS 39.25.120(c)(14) is amended to read:                                                                
24                 (14)  the rehabilitation administrator of the division of workers'                                  
25       compensation [WORKERS' COMPENSATION BOARD];                                                                   
26    * Sec. 47.  AS 39.50.200(b)(31) is amended to read:                                                                
27                 (31)  Workers' Compensation Board (AS 23.30.005) and Workers'                                       
28       Compensation Appeals Commission (AS 23.30.007);                                                               
29    * Sec. 48.  AS 23.30.095(f), 23.30.095(l), and 23.30.095(m) are repealed.                                          
30    * Sec. 49.  AS 23.30.015(c), 23.30.040, 23.30.205, 23.30.395(27); and AS 37.05.146(c)(12)                          
31 are repealed.                                                                                                           

01    * Sec. 50.  The uncodified law of the State of Alaska is amended by adding a new section to                        
02 read:                                                                                                                   
03       APPLICABILITY.  The amendment to AS 23.30.175(b) made by sec. 32 of this Act                                      
04 applies to an injury occurring on or after the effective date of sec. 32 of this Act.                                   
05    * Sec. 51.  The uncodified law of the State of Alaska is amended by adding a new section to                        
06 read:                                                                                                                   
07       TRANSITION:  INITIAL TERMS OF MEMBERS OF WORKERS'                                                                 
08 COMPENSATION APPEALS COMMISSION.  Notwithstanding AS 23.30.007(e), enacted                                              
09 by sec. 10 of this Act, the terms of the initially appointed representative members of the                              
10 Workers' Compensation Appeals Commission, established by AS 23.30.007 enacted by sec.                                   
11 10 of this Act, shall be set by the governor to achieve staggered terms in the manner provided                          
12 in AS 39.05.055.                                                                                                        
13    * Sec. 52.  The uncodified law of the State of Alaska is amended by adding a new section to                        
14 read:                                                                                                                   
15       TRANSITION:  STAFF.  (a)  In order to ensure the smooth assumption of duties in                                   
16 the shortest possible time, for a period of six months after the effective date of this section, the                    
17 director may, with the approval of the commissioner of labor and workforce development and                              
18 the chair of the commission, temporarily assign division employees to the commission and the                            
19 commission may reimburse the division for the temporarily assigned employees.  Division                                 
20 employees temporarily assigned to the commission shall continue in the same position and                                
21 rate of pay for the duration of the temporary assignment as the employees held at the division.                         
22       (b)  In this section,                                                                                             
23            (1)  "commission" means the Workers' Compensation Appeals Commission                                         
24 established by AS 23.30.007, enacted by sec. 10 of this Act;                                                            
25            (2)  "director" means the director of the division of workers' compensation in                               
26 the Department of Labor and Workforce Development;                                                                      
27            (3)  "division" means the division of workers' compensation in the Department                                
28 of Labor and Workforce Development.                                                                                     
29    * Sec. 53.  The uncodified law of the State of Alaska is amended by adding a new section to                        
30 read:                                                                                                                   
31       TRANSITIONAL PROVISIONS.  (a)  Litigation, investigations, and other                                              

01 proceedings pending under a law amended or repealed by this Act, or in connection with                                  
02 functions transferred by this Act, continue in effect and may be continued and completed,                               
03 notwithstanding a transfer or amendment or repeal provided for in this Act.                                             
04       (b)  Certificates, decisions, and orders issued under authority of a law amended or                               
05 repealed by this Act remain in effect for the term issued, or until revoked, vacated, or                                
06 otherwise modified under the provisions of this Act.  Contracts, rights, liabilities, and                               
07 obligations created by or under a law amended or repealed by this Act, and in effect on the                             
08 day before the effective date of this section, remain in effect notwithstanding this Act's taking                       
09 effect.                                                                                                                 
10    * Sec. 54.  The uncodified law of the State of Alaska is amended by adding a new section to                        
11 read:                                                                                                                   
12       TRANSITION: REGULATIONS.  (a)  The Department of Labor and Workforce                                              
13 Development and the director of insurance in the Department of Commerce, Community, and                                 
14 Economic Development each may proceed to adopt regulations necessary to implement their                                 
15 respective provisions of this Act.  The regulations take effect under AS 44.62 (Administrative                          
16 Procedure Act), but not before the effective date of the statutory changes.                                             
17       (b)  In order to provide for the procedures and other administrative matters necessary                            
18 to ensure the on-going implementation of the state's workers' compensation laws to meet the                             
19 urgent needs of injured workers, and thus ensure the preservation of the public peace, health,                          
20 safety, or general welfare, the Workers' Compensation Appeals Commission established by                                 
21 AS 23.30.007, enacted by sec. 10 of this Act, may adopt under AS 23.30.008, enacted by sec.                             
22 10 of this Act, as emergency regulations, the regulations necessary to implement the changes                            
23 made by this Act.                                                                                                       
24    * Sec. 55.  The uncodified law of the State of Alaska is amended by adding a new section to                        
25 read:                                                                                                                   
26       IMPLEMENTATION OF REPEAL OF SECOND INJURY FUND.  The balance of                                                   
27 the second injury fund created by former AS 23.30.040 is transferred to the general fund on                             
28 the effective date of this section.                                                                                     
29    * Sec. 56.  The uncodified law of the State of Alaska is amended by adding a new section to                        
30 read:                                                                                                                   
31       TRANSITION: MEDICAL SERVICES REVIEW COMMITTEE STUDY AND                                                           

01 REPORT.  The medical services review committee appointed by the commissioner of labor                                   
02 and workforce development under AS 23.30.095(j), as amended by sec. 23 of this Act, shall                               
03 proceed to study medical and related benefits provided under AS 23.30 to determine the                                  
04 appropriateness, necessity, and cost of the benefits, and shall provide to the commissioner of                          
05 labor and workforce development, by March 1, 2007, a report of the results of the study.                              
06    * Sec. 57.  Section 54(a) of this Act takes effect immediately under AS 01.10.070(c).                              
07    * Sec. 58.  Sections 1 - 4, 32, and 56 of this Act take effect September 1, 2005.                                  
08    * Sec. 59.  Sections 5, 12, 39, 49, and 55 of this Act take effect on the date that the                            
09 commissioner of labor and workforce development certifies to the revisor of statutes and the                            
10 lieutenant governor that all liability for previously accepted claims to the second injury fund                         
11 created by former AS 23.30.040, and claims ordered to be paid from that fund, have been                                 
12 satisfied.                                                                                                              
13    * Sec. 60.  Except as provided in secs. 57 - 59 of this Act, this Act takes effect August 1,                       
14 2005.