CSSB 130(JUD): "An Act relating to a special deposit for workers' compensation and employers' liability insurers; relating to assigned risk pools; relating to workers' compensation insurers; stating the intent of the legislature, and setting out limitations, concerning the interpretation, construction, and implementation of workers' compensation laws; relating to the Alaska Workers' Compensation Board; assigning certain Alaska Workers' Compensation Board functions to the division of workers' compensation in the Department of Labor and Workforce Development and to that department, and authorizing the board to delegate administrative and enforcement duties to the division; providing for workers' compensation hearing officers in workers' compensation proceedings; relating to workers' compensation medical benefits and to charges for and payment of fees for the medical benefits; relating to agreements that discharge workers' compensation liability; relating to workers' compensation awards; relating to reemployment benefits and job dislocation benefits; relating to coordination of workers' compensation and certain disability benefits; relating to division of workers' compensation records; relating to release of treatment records; relating to an employer's failure to insure and keep insured or provide security; relating to workers' compensation proceedings; providing for a maximum amount for the cost-of-living adjustment for workers' compensation benefits; relating to attorney fees with respect to workers' compensation; providing for the department to enter into contracts with nonprofit organizations to provide information services and legal representation to injured employees; providing for administrative penalties for employers uninsured or without adequate security for workers' compensation; relating to fraudulent acts or false or misleading statements in workers' compensation and penalties for the acts or statements; providing for members of a limited liability company to be included as an employee for purposes of workers' compensation; establishing a workers' compensation benefits guaranty fund; making conforming amendments; providing for a study and report by the medical services review committee; establishing the Task Force on Workers' Compensation; and providing for an effective date."
00 CS FOR SENATE BILL NO. 130(JUD) 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 providing for workers' compensation hearing officers in workers' compensation 10 proceedings; relating to workers' compensation medical benefits and to charges for and 11 payment of fees for the medical benefits; relating to agreements that discharge workers' 12 compensation liability; relating to workers' compensation awards; relating to
01 reemployment benefits and job dislocation benefits; relating to coordination of workers' 02 compensation and certain disability benefits; relating to division of workers' 03 compensation records; relating to release of treatment records; relating to an employer's 04 failure to insure and keep insured or provide security; relating to workers' 05 compensation proceedings; providing for a maximum amount for the cost-of-living 06 adjustment for workers' compensation benefits; relating to attorney fees with respect to 07 workers' compensation; providing for the department to enter into contracts with 08 nonprofit organizations to provide information services and legal representation to 09 injured employees; providing for administrative penalties for employers uninsured or 10 without adequate security for workers' compensation; relating to fraudulent acts or 11 false or misleading statements in workers' compensation and penalties for the acts or 12 statements; providing for members of a limited liability company to be included as an 13 employee for purposes of workers' compensation; establishing a workers' compensation 14 benefits guaranty fund; making conforming amendments; providing for a study and 15 report by the medical services review committee; establishing the Task Force on 16 Workers' Compensation; and providing for an effective date." 17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 18 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 19 to read: 20 LEGISLATIVE INTENT. It is the intent of the legislature by secs. 2 - 4 of this Act 21 (1) to reform the workers' compensation system in Alaska to ensure the 22 continued payment of benefits in the event of an insurer insolvency; and 23 (2) to reduce the overall costs of workers' compensation premiums to 24 employers. 25 * Sec. 2. AS 21.09.090 is amended by adding new subsections to read:
01 (e) In addition to and separate from the deposit required under (b) of this 02 section, an insurer that is authorized to transact workers' compensation and employer's 03 liability insurance as defined in AS 21.12.070(a)(3) shall deposit in this state, through 04 the director, for the protection of persons in this state covered by workers' 05 compensation insurance issued by the insurer, an amount not less than the greater of 06 (1) $100,000; or 07 (2) an amount equal to the sum of the following less any credit for 08 reinsurance that the insurer may take under (f) of this section: 09 (A) the aggregate of the present value at four percent interest of 10 the total determined and estimated future loss and loss expense payment upon 11 each claim incurred under a policy written in this state more than three years 12 before the date of computation; and 13 (B) for each of the three years before the date of computation, 14 65 percent of the earned premium for the year less each loss and loss expense 15 payment made upon a claim incurred in the corresponding year, except that the 16 amount for any year may not be less than the present value at four percent 17 interest of the total determined and estimated future loss and loss expense 18 payment upon each claim incurred under a policy written in this state that year. 19 (f) In calculating the deposit amount required under (e)(2) of this section, an 20 insurer may take a credit for reinsurance if the reinsurer has deposited in trust in this 21 state, through the director, an amount at least equal to the credit to be taken, and not 22 less than the aggregate of all credits taken by each insurer under this subsection. 23 * Sec. 3. AS 21.24.130 is amended by adding a new subsection to read: 24 (f) If an insurer is found to be insolvent by a proceeding under AS 21.78 or by 25 a court of competent jurisdiction in another state, the director shall take control of the 26 insurer's deposit made under AS 21.09.090(e). The deposit assets shall be released, at 27 the discretion of the director, to the Alaska Insurance Guaranty Association 28 (AS 21.80) to reimburse for a valid loss and loss expense claim payment made by the 29 association that is within the purpose of the deposit. The director shall pay the 30 remaining deposit assets to the receiver, conservator, rehabilitator, or liquidator of the 31 insurer, or to another properly designated official who succeeds to the management
01 and control of the insurer's assets, after the director determines that all loss and loss 02 expense liabilities have been paid that were incurred on the insurer's policies written in 03 this state for which the deposit was required. 04 * Sec. 4. AS 21.39.155(a) is amended to read: 05 (a) The director may require insurers, except a reciprocal insurer formed [BY 06 AND INSURING ONLY A GROUP OF MUNICIPALITIES OR NONPROFIT 07 PUBLIC UTILITIES] under AS 21.75 [OR A RECIPROCAL INSURER FORMED 08 UNDER AS 21.75 TO PROVIDE MARINE INSURANCE], as a condition of writing 09 a line of insurance dealing with medical malpractice or workers' compensation, to 10 participate in an assigned risk pool if the director finds that mandatory carrier 11 participation is in the public interest. 12 * Sec. 5. AS 23.30 is amended by adding a new section to read: 13 Sec. 23.30.001. Intent of the legislature and construction of chapter. It is 14 the intent of the legislature that 15 (1) this chapter be interpreted so as to ensure the quick, efficient, fair, 16 and predictable delivery of indemnity and medical benefits to injured workers at a 17 reasonable cost to the employers who are subject to the provisions of this chapter; 18 (2) workers' compensation cases shall be decided on their merits 19 except where otherwise provided by statute; 20 (3) this chapter may not be construed by the courts in favor of a party; 21 (4) hearings in workers' compensation cases shall be impartial and fair 22 to all parties and that all parties shall be afforded due process and an opportunity to be 23 heard and for their arguments and evidence to be fairly considered. 24 * Sec. 6. AS 23.30.005(a) is amended to read: 25 (a) The Alaska Workers' Compensation Board consists of a southern panel of 26 three members sitting for the first judicial district, a northern panel of three members 27 sitting for the second and fourth judicial districts, four southcentral panels of three 28 members each sitting for the third judicial district, and one panel of three members 29 that may sit in any judicial district. Each panel must include the commissioner of 30 labor and workforce development or a hearing officer designated to represent [THE 31 DESIGNATED REPRESENTATIVE OF] the commissioner, a representative of
01 industry, and a representative of labor. The latter two members of each panel shall be 02 appointed by the governor and are subject to confirmation by a majority of the 03 members of the legislature in joint session. The board shall by regulation provide 04 procedures to avoid conflicts and the appearance of impropriety in hearings. 05 * Sec. 7. AS 23.30.005(b) is amended to read: 06 (b) The commissioner shall act as chair [CHAIRMAN] and executive officer 07 of the board and chair [CHAIRMAN] of each panel. The commissioner may 08 designate a representative to act for the commissioner as chair and executive 09 officer of the board. The commissioner may designate hearing officers to serve as 10 chairs of panels for hearing claims [IF THE COMMISSIONER DESIGNATES A 11 REPRESENTATIVE TO ACT FOR THE COMMISSIONER, THE 12 REPRESENTATIVE SHALL SERVE IN THAT CAPACITY ON THE BOARD 13 AND ON EACH PANEL]. 14 * Sec. 8. AS 23.30.005 is amended by adding new subsections to read: 15 (m) The department may, in its discretion, contract with a nonprofit 16 organization to provide information services and legal representation to employees in 17 proceedings under this chapter. 18 (n) The board may by regulation delegate authority to the director to assist the 19 board in administering and enforcing this chapter. 20 * Sec. 9. AS 23.30.012 is amended to read: 21 Sec. 23.30.012. Agreements in regard to claims. (a) At any time after 22 death, or after 30 days subsequent to the date of the injury, the employer and the 23 employee or the beneficiary or beneficiaries, as the case may be, have the right to 24 reach an agreement in regard to a claim for injury or death under this chapter [IN 25 ACCORDANCE WITH THE APPLICABLE SCHEDULE IN THIS CHAPTER], but 26 a memorandum of the agreement in a form prescribed by the director [BOARD] shall 27 be filed with the division [BOARD]. Otherwise, the agreement is void for any 28 purpose. Except as provided in (b) of this section, an agreement filed with the 29 division discharges the liability of the employer for the compensation, 30 notwithstanding the provisions of AS 23.30.130, 23.30.160, and 23.30.245, and is 31 enforceable as a compensation order.
01 (b) If the claimant or beneficiary is not represented by an attorney 02 licensed to practice in this state or the beneficiary is a minor or incompetent, the 03 agreement shall be reviewed by a panel of the board. If approved by the board, the 04 agreement is enforceable the same as an order or award of the board and discharges 05 the liability of the employer for the compensation notwithstanding the provisions of 06 AS 23.30.130, 23.30.160, and 23.30.245. The agreement shall be approved by the 07 board only when the terms conform to the provisions of this chapter, and, if it involves 08 or is likely to involve permanent disability, the board may require an impartial medical 09 examination and a hearing in order to determine whether or not to approve the 10 agreement. A [THE BOARD MAY APPROVE] lump-sum settlement may be 11 approved [SETTLEMENTS] when it appears to be to the best interest of the 12 employee or beneficiary or beneficiaries. 13 * Sec. 10. AS 23.30.041(a) is amended to read: 14 (a) The director [BOARD] shall select and employ a reemployment benefits 15 administrator. The director [BOARD] may authorize the administrator to select and 16 employ additional staff. The administrator is in the partially exempt service under 17 AS 39.25.120. 18 * Sec. 11. AS 23.30.041(b) is amended to read: 19 (b) The administrator shall 20 (1) enforce regulations adopted by the board to implement this section; 21 (2) recommend regulations for adoption by the board that establish 22 performance and reporting criteria for rehabilitation specialists; 23 (3) enforce the quality and effectiveness of reemployment benefits 24 provided for under this section; 25 (4) review on an annual basis the performance of rehabilitation 26 specialists to determine continued eligibility for delivery of rehabilitation services; 27 (5) submit to the department, on or before May 1 of each year, a report 28 of reemployment benefits provided under this section for the previous calendar year; 29 the report must include a general section, sections related to each rehabilitation 30 specialist employed under this section, and a statistical summary of all rehabilitation 31 cases, including
01 (A) the estimated and actual cost of each active rehabilitation 02 plan; 03 (B) the estimated and actual time of each rehabilitation plan; 04 (C) a status report on all individuals requesting, waiving, 05 beginning, completing, or terminating a reemployment benefits program 06 including 07 (i) reasons for denial, waiver, suspension, or 08 termination; 09 (ii) dates of completion and [A] return to work; and 10 (iii) other information required by the director 11 [DATE]; 12 (D) the cost of reemployment benefits; 13 (E) status reports of all individuals who successfully 14 completed a reemployment plan that includes 15 (i) the plan's occupational goal and whether the 16 individual obtained work after completion in the planned or 17 another occupation; and 18 (ii) the individual's employment status six months, 19 one year, and two years after reemployment plan completion; 20 (6) maintain a list of rehabilitation specialists who meet the 21 qualifications established under this section; 22 (7) promote awareness among physicians, adjusters, injured workers, 23 employers, employees, attorneys, training providers, and rehabilitation specialists of 24 the reemployment program established in this subsection. 25 * Sec. 12. AS 23.30.041(c) is repealed and reenacted to read: 26 (c) An employee and an employer may stipulate to the employee's eligibility 27 for reemployment benefits at any time. If an employee suffers a compensable injury 28 and, as a result of the injury, the employee is totally unable, for 45 consecutive days, 29 to return to the employee's employment at the time of injury, the administrator shall 30 notify the employee of the employee's rights under this section within 14 days after the 31 45th day. If the employee is totally unable to return to the employee's employment for
01 60 consecutive days as a result of the injury, the employee or employer may request an 02 eligibility evaluation. The administrator may approve the request if the employee's 03 injury may permanently preclude the employee's return to the employee's occupation 04 at the time of the injury. If the employee is totally unable to return to the employee's 05 employment at the time of the injury for 90 consecutive days as a result of the injury, 06 the administrator shall, without a request, order an eligibility evaluation unless a 07 stipulation of eligibility was submitted. If the administrator approves a request or 08 orders an evaluation, the administrator shall, on a rotating and geographic basis, select 09 a rehabilitation specialist from the list maintained under (b)(6) of this section to 10 perform the eligibility evaluation. If the person that employs a rehabilitation specialist 11 selected by the administrator to perform an eligibility evaluation under this subsection 12 is performing any other work on the same workers' compensation claim involving the 13 injured employee, the administrator shall select a different rehabilitation specialist. 14 * Sec. 13. AS 23.30.041(f) is amended to read: 15 (f) An employee is not eligible for reemployment benefits if 16 (1) the employer offers employment within the employee's predicted 17 post-injury physical capacities at a wage equivalent to at least the state minimum wage 18 under AS 23.10.065 or 75 percent of the worker's gross hourly wages at the time of 19 injury, whichever is greater, and the employment prepares the employee to be 20 employable in other jobs that exist in the labor market; 21 (2) the employee previously declined the development of a 22 reemployment benefits plan under (g) of this section, received a job dislocation 23 benefit under (g)(2) of this section, and returned to work in the same or similar 24 occupation in terms of physical demands required of the employee at the time of 25 the previous injury; 26 (3) the employee has been previously rehabilitated in a former 27 worker's compensation claim and returned to work in the same or similar occupation 28 in terms of physical demands required of the employee at the time of the previous 29 injury; or 30 (4) [(3)] at the time of medical stability, no permanent impairment is 31 identified or expected.
01 * Sec. 14. AS 23.30.041(g) is amended to read: 02 (g) Within 30 [15] days after the employee receives the administrator's 03 notification of eligibility for benefits, an employee [WHO DESIRES TO USE THESE 04 BENEFITS] shall give written notice under oath, on a form provided by the 05 division, to the administrator and the employer of the employee's election to 06 either use the reemployment benefits or to accept a job dislocation benefit under 07 (2) of this subsection. The following apply to an election under this subsection: 08 (1) an employee who elects to use the reemployment benefits also 09 shall notify the employer of the employee's selection of a rehabilitation specialist who 10 shall provide a complete reemployment benefits plan; failure [. FAILURE] to give 11 notice of selection of a rehabilitation specialist required by this paragraph 12 [SUBSECTION] constitutes noncooperation under (n) of this section; if [. IF] the 13 employer disagrees with the employee's choice of rehabilitation specialist to develop 14 the plan and the disagreement cannot be resolved, then the administrator shall assign a 15 rehabilitation specialist; the [. THE] employer and employee each have one right of 16 refusal of a rehabilitation specialist; 17 (2) an employee who elects to accept a job dislocation benefit in 18 place of reemployment benefits and who has been given a permanent partial 19 impairment rating by a physician shall be paid 20 (A) $5,000 if the employee's permanent partial impairment 21 rating is greater than zero and less than 15 percent; 22 (B) $8,000 if the employee's permanent partial impairment 23 rating is 15 percent or greater but less than 30 percent; or 24 (C) $13,500 if the employee's permanent partial 25 impairment rating is 30 percent or greater; 26 (3) the form provided by the division for election must specify that 27 the employee understands the scope of the benefits and rights being waived by 28 the election; the administrator shall serve a copy of the executed election form on 29 the parties within 10 days after receiving the form from the employee; the 30 election and waiver of unchosen benefits is effective upon service to the parties; a 31 waiver and election effective under this subsection discharges the employer's
01 liability for the benefits or rights under this section that were not elected; a 02 waiver may not be modified under AS 23.30.130; the administrator may not 03 accept an election to accept a job dislocation benefit by an employee who has not 04 signed a form that conspicuously notes the benefit being waived. 05 * Sec. 15. AS 23.30.041(j) is amended to read: 06 (j) The employee, rehabilitation specialist, and [THE] employer shall sign the 07 reemployment benefits plan. If the employer and employee fail to agree on a 08 reemployment plan, either party may submit a reemployment plan for approval to the 09 administrator. The [; THE] administrator shall approve or deny a plan within 14 days 10 after the plan is submitted. Within [; WITHIN] 10 days after [OF] the decision, 11 either party may seek review of the decision by requesting a hearing under 12 AS 23.30.110. The [; THE] board shall uphold the decision of the administrator 13 unless evidence is submitted supporting an allegation of abuse of discretion on the part 14 of the administrator. The [; THE] board shall render a decision within 30 days after 15 completion of the hearing. 16 * Sec. 16. AS 23.30.041(k) is amended to read: 17 (k) Benefits related to the reemployment plan may not extend past two years 18 from date of plan approval or acceptance, whichever date occurs first, at which time 19 the benefits expire. If an employee reaches medical stability before completion of the 20 plan, temporary total disability benefits shall cease, and permanent impairment 21 benefits shall then be paid at the employee's temporary total disability rate. If the 22 employee's permanent impairment benefits are exhausted before the completion or 23 termination of the reemployment process [PLAN], the employer shall provide 24 compensation equal to 70 percent of the employee's spendable weekly wages, but not 25 to exceed 105 percent of the average weekly wage, until the completion or termination 26 of the process [PLAN], except that any compensation paid under this subsection is 27 reduced by wages earned by the employee while participating in the process [PLAN] 28 to the extent that the wages earned, when combined with the compensation paid under 29 this subsection, exceed the employee's temporary total disability rate. If permanent 30 partial disability or permanent partial impairment benefits have been paid in a lump 31 sum before the employee requested or was found eligible for reemployment benefits,
01 payment of benefits under this subsection is suspended until permanent partial 02 disability or permanent partial impairment benefits would have ceased, had those 03 benefits been paid at the employee's temporary total disability rate, notwithstanding 04 the provisions of AS 23.30.155(j). A permanent impairment benefit remaining unpaid 05 upon the completion or termination of the plan shall be paid to the employee in a 06 single lump sum. An employee may not be considered permanently totally disabled so 07 long as the employee is involved in the rehabilitation process under this chapter. The 08 fees of the rehabilitation specialist or rehabilitation professional shall be paid by the 09 employer and may not be included in determining the cost of the reemployment plan. 10 * Sec. 17. AS 23.30.041(n) is amended to read: 11 (n) After the employee has elected to participate in reemployment benefits, if 12 the employer believes the employee has not cooperated, the employer may terminate 13 reemployment benefits on the date of noncooperation. Noncooperation means 14 (1) unreasonable failure to 15 (A) keep appointments; 16 (B) maintain passing grades; 17 (C) attend designated programs; 18 (D) maintain contact with the rehabilitation specialist; 19 (E) cooperate with the rehabilitation specialist in developing a 20 reemployment plan and participating in activities relating to reemployability on 21 a full-time basis; 22 (F) comply with the employee's responsibilities outlined in the 23 reemployment plan; or 24 (G) participate in any planned reemployment activity as 25 determined by the administrator; or 26 (2) failure to give written notice to the employer of the employee's 27 choice of rehabilitation specialists within 30 [15] days after receiving notice of 28 eligibility for benefits from the administrator as required by (g) of this section. 29 * Sec. 18. AS 23.30.041(p) is amended to read: 30 (p) When the United States Department of Labor publishes a new edition, 31 revision, or replacement for the "Selected Characteristics of Occupations Defined in
01 the Revised Dictionary of Occupational Titles" referred to in (e) of this section, the 02 director [BOARD] shall, not later than 90 days after the last day of the month in 03 which the new edition, revision, or replacement standard is published, hold an open 04 meeting under AS 44.62.310 to select the proposed date on which the new edition, 05 revision, or replacement standard will be implemented to make all eligibility 06 determinations required under (e) of this section. The date selected by the 07 department [BOARD] for implementing the new edition, revision, or replacement 08 standard may not be later than 90 days after the last day of the month in which the new 09 edition, revision, or replacement standard is published. After the meeting, the 10 director [BOARD] shall issue a public notice announcing the date selected by the 11 department. The requirements of AS 44.62.010 - 44.62.300 do not apply to the 12 selection or announcement of the date under this subsection. 13 * Sec. 19. AS 23.30.041(q) is amended to read: 14 (q) Notwithstanding AS 23.30.012, after medical stability has been determined 15 and a physician has predicted that the employee may have a permanent impairment 16 that may cause the employee to have permanent physical capacities that are less than 17 the physical demands of the employee's job at the time of injury, an employee may 18 waive any benefits or rights under this section, including an eligibility evaluation and 19 benefits related to a reemployment plan. To waive any benefits or rights under this 20 section, an employee must file a statement under oath with the division [BOARD] to 21 notify the parties of the waiver and to specify the scope of benefits or rights that the 22 employee seeks to waive. The statement must be on a form prescribed or approved by 23 the director [BOARD]. The division [BOARD] shall serve the notice of waiver on 24 all parties to the claim within 10 days after filing. The waiver is effective upon service 25 to the party. A waiver effective under this subsection discharges the liability of the 26 employer for the benefits or rights contained in this section. The waiver may not be 27 modified under AS 23.30.130. 28 * Sec. 20. AS 23.30.080(d) is amended to read: 29 (d) If an employer fails to insure or provide security as required by 30 AS 23.30.075, the board may issue a stop order at the request of the division 31 prohibiting the use of employee labor by the employer until the employer insures or
01 provides security as required by AS 23.30.075. The failure of an employer to file 02 evidence of compliance as required by AS 23.30.085 creates a rebuttable presumption 03 that the employer has failed to insure or provide security as required by AS 23.30.075. 04 If an employer fails to comply with a stop order issued under this section, the board 05 shall assess a civil penalty of $1,000 a [PER] day. The employer may not obtain a 06 public contract with the state or a political subdivision of the state for three years 07 following the violation of the stop order. 08 * Sec. 21. AS 23.30.080 is amended by adding new subsections to read: 09 (e) If a representative of the department investigates an employer's failure to 10 file the evidence of compliance required by AS 23.30.085 and, after investigation, 11 there is substantial evidence that the employer failed to insure or provide security as 12 required by AS 23.30.075, the representative shall inform the employer. The 13 representative may request the director to issue a stop order prohibiting the use of 14 employee labor by the employer until the employer insures or provides security as 15 required by AS 23.30.075. The director may issue a stop order, without a hearing, 16 based on the representative's investigation. The director shall dissolve a stop order 17 issued under this subsection upon receipt of substantial evidence that the employer is 18 insured or has provided security as required by AS 23.30.075(a). If an employer fails 19 to comply with a stop order issued under this subsection, the division may petition the 20 board to assess a civil penalty. The board may assess a civil penalty of $1,000 a day. 21 An employer who is assessed a penalty under this subsection may not obtain a public 22 contract with the state or a political subdivision of the state for the three years 23 following violation of the stop order. 24 (f) If an employer fails to insure or provide security as required by 25 AS 23.30.075, the division may petition the board to assess a civil penalty of up to 26 $1,000 for each employee for each day an employee is employed while the employer 27 failed to insure or provide the security required by AS 23.30.075. The failure of an 28 employer to file evidence of compliance as required by AS 23.30.085 creates a 29 rebuttable presumption that the employer failed to insure or provide security as 30 required by AS 23.30.075. 31 (g) If an employer fails to pay a civil penalty order issued under (d), (e), or (f)
01 of this section within seven days after the date of service of the order upon the 02 employer, the director may declare the employer in default. The director shall file a 03 certified copy of the penalty order and declaration of default with the clerk of the 04 superior court. The court shall, upon the filing of the copy of the order and 05 declaration, enter judgment for the amount declared in default if it is in accordance 06 with law. Anytime after a declaration of default, the attorney general shall, when 07 requested to do so by the director, take appropriate action to ensure collection of the 08 defaulted payment. Review of the judgment may be had as provided under the Alaska 09 Rules of Civil Procedure. Final proceedings to execute the judgment may be had by 10 writ of execution. 11 * Sec. 22. AS 23.30 is amended by adding a new section to read: 12 Sec. 23.30.082. Workers' compensation benefits guaranty fund. (a) The 13 workers' compensation benefits guaranty fund is established in the general fund to 14 carry out the purposes of this section. The fund is composed of civil penalty payments 15 made by employers under AS 23.30.080, income earned on investment of the money 16 in the fund, money deposited in the fund by the department, and appropriations to the 17 fund. Money appropriated to the fund does not lapse. Amounts in the fund may be 18 appropriated for claims against the fund, for expenses directly related to fund 19 operations and claims, and for legal expenses. 20 (b) Every three months, the Department of Revenue shall provide the division 21 with a statement of the activities of, balances in, interest earned on, and interest 22 returned to the fund. 23 (c) Subject to the provisions of this section, an employee employed by an 24 employer who fails to meet the requirements of AS 23.30.075 and who fails to pay 25 compensation and benefits due to the employee under this chapter, may file a claim for 26 payment by the fund. In order to be eligible for payment, the claim form must be filed 27 within the same time, and in the same manner, as a workers' compensation claim. The 28 fund may assert the same defenses as an insured employer under this chapter. 29 (d) If the fund pays benefits to an employee under this section, the fund shall 30 be subrogated to all of the rights of the employee to the amount paid, and the 31 employee shall assign all right, title, and interest in that portion of the employee's
01 workers' compensation claim and any recovery under AS 23.30.015 to the fund. 02 Money collected by the division on the claim or recovery shall be deposited in the 03 fund. 04 (e) If the money deposited in the fund is insufficient at a given time to satisfy 05 a duly authorized claim against the fund, the fund shall, when sufficient money has 06 been deposited in the fund and appropriated, satisfy unpaid claims in the order in 07 which the claims were originally filed, without interest. 08 (f) The division may contract under AS 36.30 (State Procurement Code) with 09 a person for the person to adjust claims against the fund. The contract may cover one 10 or more claims. 11 (g) In this section, "fund" means the workers' compensation benefits guaranty 12 fund. 13 * Sec. 23. AS 23.30.095(c) is amended to read: 14 (c) A claim for medical or surgical treatment, or treatment requiring 15 continuing and multiple treatments of a similar nature is not valid and enforceable 16 against the employer unless, within 14 days following treatment, the physician or 17 health care provider giving the treatment or the employee receiving it furnishes to the 18 employer and the board notice of the injury and treatment, preferably on a form 19 prescribed by the board. The board shall, however, excuse the failure to furnish notice 20 within 14 days when it finds it to be in the interest of justice to do so, and it may, upon 21 application by a party in interest, make an award for the reasonable value of the 22 medical or surgical treatment so obtained by the employee. When a claim is made for 23 a course of treatment requiring continuing and multiple treatments of a similar nature, 24 in addition to the notice, the physician or health care provider shall furnish a written 25 treatment plan if the course of treatment will require more frequent outpatient visits 26 than the standard treatment frequency for the nature and degree of the injury and the 27 type of treatments. The treatment plan shall be furnished to the employee and the 28 employer within 14 days after treatment begins. The treatment plan must include 29 objectives, modalities, frequency of treatments, and reasons for the frequency of 30 treatments. If the treatment plan is not furnished as required under this subsection, 31 neither the employer nor the employee may be required to pay for treatments that
01 exceed the frequency standard. The board shall adopt regulations establishing 02 standards for frequency of treatment. Notwithstanding (a) of this section, a claim 03 for palliative care or treatment provided after the employee's conditions 04 medically stable is not valid and enforceable against the employer unless the 05 employee's attending physician certifies that the palliative care or treatment is 06 required to enable the employee to continue in the employee's employment at the 07 time of treatment or to enable the employee to continue to participate in an 08 agreed upon or approved reemployment plan. Palliative care or treatment is also 09 subject to the requirements of this subsection if the palliative care or treatment 10 involves continuing and multiple treatments of a similar nature. Limitations 11 described in this subsection do not apply if the physician certifies that the 12 treatment is needed to treat chronic debilitating pain. 13 * Sec. 24. AS 23.30.095(j) is amended to read: 14 (j) The commissioner shall [BOARD MAY] appoint a medical services 15 review committee, or contract with an existing organization in the state or another 16 state, to assist and advise the department and the board in matters involving the 17 appropriateness, necessity, and cost of medical and related services provided under 18 this chapter. 19 * Sec. 25. AS 23.30.095 is amended by adding new subsections to read: 20 (n) A generic drug product must be used when dispensing a drug product to an 21 employee under this chapter unless the attending physician provides justification in 22 writing explaining the medical necessity for the name-brand drug product. The 23 department, by regulation, shall establish a preferred drug list and a procedure for 24 establishing medical necessity to depart from the list and to use a name-brand drug 25 product. In this subsection, "generic drug product" has the meaning given the term 26 "equivalent drug product" in AS 08.80.480. 27 (o) For purposes of this chapter, the medical treatment or service that the 28 nature of the injury or the process of recovery requires under (a) of this section means 29 treatment or service that is within the recommended guidelines set out in the American 30 College of Occupational and Environmental Medicine's Occupational Medicine 31 Practice Guidelines in effect at the time the treatment or service is provided. The
01 American College of Occupational and Environmental Medicine's Occupational 02 Medicine Practice Guidelines shall be presumed correct on the issue of the nature, 03 extent, and scope of medical treatment or services. For an injury not covered by the 04 American College of Occupational and Environmental Medicine's Occupational 05 Medicine Practice Guidelines, the treatment or service shall be in accordance with 06 standards based on other scientific, evidence-based medical treatment guidelines 07 generally recognized by the national medical community and adopted by the board by 08 regulation, and those standards shall also be presumed correct on the issue of the 09 nature, extent, and scope of medical treatment or services. Treatment may not be 10 denied based on American College of Occupational and Environmental Medicine's 11 Occupational Medicine Practice Guidelines if the treatment for the injury is not 12 specifically addressed by the American College of Occupational and Environmental 13 Medicine's Occupational Medicine Practice Guidelines. 14 (p) The presumptions established under (o) of this section may be rebutted by 15 an employee's physician's written certification explaining 16 (1) the nature, extent, and scope of provided medical treatment or 17 service that is at variance with the applicable guidelines or standards; and 18 (2) the basis for the physician's conclusion that the provided medical 19 treatment or service at variance was reasonably required by the nature of the injury or 20 process of recovery. 21 * Sec. 26. AS 23.30 is amended by adding a new section to article 2 to read: 22 Sec. 23.30.097. Fees for medical treatment and services; payment of bills. 23 (a) All fees and other charges for medical treatment or service are subject to 24 regulation by the board consistent with this section. A fee or other charge for medical 25 treatment or service may not exceed the lesser of 26 (1) the usual, customary, and reasonable fees for the treatment or 27 service in the community in which it is rendered, not to exceed the fees in the fee 28 schedule specified by the board in its published bulletin in effect on December 15, 29 2003; or 30 (2) the payment made by the employer as negotiated by the provider 31 and the employer under (c) of this section.
01 (b) An employer, or group of employers, may establish a list of preferred 02 physicians and treatment service providers to provide medical, surgical, and other 03 attendance or treatment services to the employer's employees under this chapter; 04 however, 05 (1) the employee's right to chose the employee's attending physician 06 under AS 23.30.095(a) is not impaired; 07 (2) when given to the employee, the employer's preferred physician list 08 must clearly state that the list is voluntary, that the employee's choice is not restricted 09 to the list, that the employee's rights under this chapter are not impaired by choosing 10 an attending physician from the list, and that, if the employee chooses an attending 11 physician from the list, the employee may, in the manner provided in AS 23.30.095, 12 make one change of attending physician, from the list or otherwise; and 13 (3) establishment of a list of preferred physicians does not affect the 14 employer's choice of physician for an employer medical examination under 15 AS 23.30.095. 16 (c) An employer or group of employers may negotiate with physicians and 17 other treatment service providers under this chapter to obtain reduced fees and service 18 charges and may take the fees and charges into account when forming a list of 19 preferred physicians and providers. In no event may an employer or group of 20 employers attempt to influence the treatment, medical decisions, or permanent 21 impairment ratings by physicians in the course of the negotiations regarding a 22 preferred physician and provider fee list. 23 (d) An employer shall pay an employee's bills for medical treatment under this 24 chapter, excluding prescription charges or transportation for medical treatment, within 25 30 days after the date that the employer receives the provider's bill or a completed 26 report as required by AS 23.30.095(c), whichever is later. 27 (e) Unless the employer controverts a charge, an employer shall reimburse an 28 employee's prescription charges under this chapter within 30 days after the employer 29 received the health care provider's completed report and an itemization of the 30 prescription charges for the employee. Unless the employer controverts a charge, an 31 employer shall reimburse transportation expenses for medical treatment under this
01 chapter within 30 days after the employer received the health care provider's 02 completed report and an itemization of the date, destination, and transportation 03 expenses for each date of travel for medical treatment. If the employer does not plan 04 to make or does not make payment or reimbursement in full as required by this 05 subsection, the employer shall notify in writing the employee and the employee's 06 health care provider that payment will not be timely made and the reason for the 07 nonpayment. The notification must be provided on or before the date that payment is 08 due under this subsection or (d) of this section. 09 (f) An employee may not be required to pay a fee or charge for medical 10 treatment or service provided under this chapter. 11 * Sec. 27. AS 23.30.100(b) is amended to read: 12 (b) The notice must be in writing, contain the name and address of the 13 employee, [AND] a statement of the time, place, nature, and cause of the injury or 14 death, and authority to release records of medical treatment for the injury or 15 death, and be signed by the employee or by a person on behalf of the employee, or, in 16 case of death, by a person claiming to be entitled to compensation for the death or by a 17 person on behalf of that person. 18 * Sec. 28. AS 23.30.107(b) is amended to read: 19 (b) Medical or rehabilitation records in an employee's file maintained by the 20 division or held by the board are not public records subject to public inspection and 21 copying under AS 40.25. This subsection does not prohibit 22 (1) the reemployment benefits administrator, the division, the board, 23 or the department from releasing medical or rehabilitation records in an employee's 24 file, without the employee's consent, to a physician providing medical services under 25 AS 23.30.095(k) or 23.30.110(g), a party to a claim filed by the employee, or a 26 governmental agency; or 27 (2) the quoting or discussing of medical or rehabilitation records 28 contained in an employee's file during a hearing on a claim for compensation [,] or in 29 a decision and order of the board. 30 * Sec. 29. AS 23.30.107 is amended by adding a new subsection to read: 31 (c) The division may not assemble, or provide information respecting,
01 individual records for commercial purposes that are outside the scope of this chapter. 02 * Sec. 30. AS 23.30.122 is repealed and reenacted to read: 03 Sec. 23.30.122. Credibility of witnesses. The board has the sole power to 04 determine the credibility of testimony presented by a witness. When credibility is 05 disputed in a proceeding before the board, the board's determination of credibility 06 must be supported by specific findings. 07 * Sec. 31. AS 23.30.175(b) is amended to read: 08 (b) The following rules apply to benefits payable to recipients not residing in 09 the state at the time compensation benefits are payable: 10 (1) the weekly rate of compensation shall be calculated by multiplying 11 the recipient's weekly compensation rate calculated under AS 23.30.180, 23.30.185, 12 23.30.190, 23.30.200, or 23.30.215 [,] by the ratio of the cost of living of the area in 13 which the recipient resides to the cost of living in this state; 14 (2) the calculation required by (1) of this subsection does not apply if 15 the recipient is absent from the state for medical or rehabilitation services not 16 reasonably available in the state; 17 (3) if the gross weekly earnings of the recipient and the resulting 18 compensation rate are determined under AS 23.30.220(a)(6), (7), or (10), the 19 calculation required by this subsection applies only to the portion of the recipient's 20 weekly compensation rate attributable to wages earned in the state; 21 (4) application of this subsection may not reduce the weekly 22 compensation rate to less than $154 a week, except as provided in (a) of this section; 23 (5) application of (1) - (4) of this subsection may not result in 24 raising a recipient's weekly compensation rate to an amount that exceeds the 25 weekly compensation rate that the recipient would have received if the recipient 26 had been residing in the state. 27 * Sec. 32. AS 23.30.175(c) is amended to read: 28 (c) The department [BOARD] shall provide by regulation for the 29 determination and comparison of living costs for this state and the other areas in which 30 recipients reside and for the [ANNUAL] redetermination and comparison of these 31 costs every three years.
01 * Sec. 33. AS 23.30.205(e) is amended to read: 02 (e) The second injury fund may not be bound as to any question of law or fact 03 by reason of an award or an adjudication to which it was not a party or in relation to 04 which the director [COMMISSIONER] was not notified at least three weeks before 05 the award or adjudication [,] that the fund might be subject to liability for the injury or 06 death. 07 * Sec. 34. AS 23.30.205 is amended by adding a new subsection to read: 08 (g) Claims for reimbursement may not be submitted to the fund after 09 September 1, 2005. The fund shall continue to make reimbursement payments on 10 claims accepted before July 1, 2006, or ordered by the board, until the fund's liabilities 11 for the claim are extinguished. 12 * Sec. 35. AS 23.30 is amended by adding a new section to read: 13 Sec. 23.30.224. Coordination of benefits. (a) Notwithstanding other 14 provisions of this chapter, an employer's liability for payment of weekly compensation 15 under AS 23.30.180 or 23.30.185 to an employee eligible for a disability benefit under 16 AS 14.25.130, AS 39.35.400, or 39.35.410 may not exceed the lesser of 17 (1) the difference between the disability benefit payable to the 18 employee under AS 14.25.130, AS 39.35.400, or 39.35.410, converted to a weekly 19 basis, and 100 percent of the employee's spendable weekly wage as calculated under 20 AS 23.30.220; or 21 (2) the maximum compensation rate calculated under AS 23.30.175. 22 (b) An employer's liability for payment of compensation under 23 AS 23.30.041(k) to an employee eligible for a disability benefit payable under 24 AS 14.25.130, AS 39.35.400, or 39.35.410 may not exceed the lesser of 25 (1) the difference between the disability benefit payable to the 26 employee under AS 14.25.130, AS 39.35.400, or 39.35.410, converted to a weekly 27 basis, and 80 percent of the employee's spendable weekly wage as calculated under 28 AS 23.30.220; or 29 (2) 105 percent of the average weekly wage calculated under 30 AS 23.30.175(d). 31 (c) Notwithstanding other provisions of this chapter, the liability of an
01 employer for payment of compensation for an injury or illness under AS 23.30.180 or 02 23.30.185 to an employee who is covered by a union or group retirement system to 03 which the employer makes contributions under a collective bargaining agreement or 04 by membership in a welfare or pension plan or trust may not exceed the lesser of 05 (1) the difference between 100 percent of the employee's spendable 06 weekly wage and an amount equal to the disability benefit, disability pension, or 07 medical retirement benefit that the employee is eligible to receive as a result of the 08 injury or illness, as calculated on a weekly basis, under the retirement system or 09 welfare or pension plan or trust; or 10 (2) the maximum compensation rate calculated under AS 23.30.175. 11 (d) If the union or group retirement system, pension plan, or trust referred to in 12 (c) of this section provides by its terms that its benefits are precluded or reduced if 13 benefits are awarded under this chapter, the limitation provided in (c)(1) of this section 14 is not applicable to the extent of the amount precluded or reduced. 15 (e) Notwithstanding other provisions of this chapter, the liability of an 16 employer for payment of compensation for an injury or illness under AS 23.30.041(k) 17 to an employee who is covered by a union or group retirement system to which the 18 employer makes contributions under a collective bargaining agreement or by 19 membership in a welfare or pension plan or trust may not exceed the lesser of 20 (1) the difference between 80 percent of the employee's spendable 21 weekly wage and an amount equal to the disability benefit, disability pension, or 22 medical retirement benefit that the employee is eligible to receive as a result of the 23 injury or illness, calculated on a weekly basis, under the retirement system or welfare 24 or pension plan or trust; or 25 (2) 105 percent of the average weekly wage calculated under 26 AS 23.30.175(d). 27 (f) If the union or group retirement system, pension plan, or trust referred to in 28 (e) of this section provides by its terms that its benefits are precluded or reduced if 29 benefits are awarded under this chapter, the limitation provided in (e)(1) of this section 30 is not applicable to the extent of the amount precluded or reduced. 31 (g) If the employee receives a lump sum distribution of disability benefits,
01 disability pension, or medical retirement benefits, the combined workers' 02 compensation and weekly disability or medical retirement benefit specified in this 03 section shall be calculated by assuming that the employee received weekly disability 04 or medical retirement payments under the applicable plan from the date of eligibility 05 for the disability benefit or medical retirement until the total of the weekly payments 06 equals the amount of the lump sum, exclusive of that portion of the lump sum 07 specifically set aside under the applicable plan for retraining expenses, medical and 08 transportation expenses, and attorney fees or other legal costs. 09 * Sec. 36. AS 23.30.240 is amended to read: 10 Sec. 23.30.240. Officers of corporations, municipal corporations and 11 nonprofit corporations and members of limited liability companies as employees. 12 An executive officer elected or appointed and empowered in accordance with the 13 charter and bylaws of a corporation, other than an official of a municipal corporation 14 or a charitable, religious, educational, or other nonprofit corporation, is an employee 15 of the corporation under this chapter. However, an executive officer of a corporation 16 may waive coverage under this chapter, subject to the approval of the director 17 [COMMISSIONER OF LABOR AND WORKFORCE DEVELOPMENT], 18 notwithstanding AS 23.30.245(b). Notwithstanding any other provision of this 19 chapter, an executive officer of a municipal corporation or of a charitable, religious, 20 educational, or other nonprofit corporation may be brought within the coverage of its 21 insurance contract by the corporation by specifically including the officer in the 22 contract of insurance. The election to bring an executive officer within the coverage 23 continues in force for the period the contract of insurance is in effect. During that 24 period, an executive officer brought within the coverage of the insurance contract is an 25 employee of the corporation under this chapter. 26 * Sec. 37. AS 23.30.240 is amended by adding a new subsection to read: 27 (b) Except as provided in this subsection, a member of a limited liability 28 company organized under AS 10.50 is not an employee of the company under this 29 chapter. Notwithstanding any other provision of this chapter, a limited liability 30 company may bring a member of the company within the coverage of the company's 31 insurance contract by specifically including the member in the contract of insurance.
01 The election to bring the member within the company's coverage continues in force 02 for the period the contract of insurance is in effect. During that period, a member 03 brought within the coverage of the insurance contract is an employee of the company 04 under this chapter. 05 * Sec. 38. AS 23.30 is amended by adding a new section to read: 06 Sec. 23.30.249. Fraudulent acts and false or misleading statements. (a) 07 An employer, insurer, or other person may petition for an order to reimburse a 08 payment and the cost of compensation, medical treatment, or other benefit provided 09 under this chapter obtained by a fraudulent act or false or misleading statement or 10 representation. If the board, after a hearing as provided by AS 23.30.110, finds by a 11 preponderance of the evidence that a person has obtained a payment, compensation, 12 medical treatment, or another benefit provided under this chapter, or that a provider 13 has received a payment, by a fraudulent act or by knowingly making a false or 14 misleading statement or representation for the purpose of obtaining that benefit or 15 payment, the board shall order that person to make full reimbursement of the payment 16 or cost of all benefits obtained. Upon entry of an order authorized under this 17 subsection, the board shall also order that person to pay all reasonable costs and 18 attorney fees incurred in obtaining an order under this section and in defending a 19 fraudulent claim made for benefits under this chapter. If a person fails to comply with 20 an order requiring reimbursement of payment or cost of benefits and payment of costs 21 and attorney fees, the employer, insurer, or other party may declare the person in 22 default and proceed to collect any sum due in the same manner as provided under 23 AS 23.30.170(b) and (c). 24 (b) Except as provided in (c) of this section, a person is not liable for civil 25 damages for filing a report concerning a suspected, anticipated, or completed 26 fraudulent act or a false or misleading statement or representation with, or for 27 furnishing other information, whether written or oral, concerning a suspected, 28 anticipated, or completed fraudulent act or false or misleading statements or 29 representation to 30 (1) law enforcement officials or their agents and employees; 31 (2) the division of workers' compensation, the division of insurance in
01 the Department of Commerce, Community, and Economic Development, or an agency 02 in another state that regulates insurance or workers' compensation; 03 (3) an insurer or adjuster or its agents, employees, or designees, or the 04 risk manager of a self-insured employer under this chapter. 05 (c) The provisions of (b) of this section do not preclude liability for civil 06 damages as described in (b) of this section if the liability arose as a result of reckless, 07 wilful, or intentional misconduct. 08 (d) An insurer, an adjuster, or a risk manager of a self-insured employer that 09 has reason to believe that a fraudulent workers' compensation demand or claim has 10 been made against it shall send the director a report disclosing information that the 11 director may require. An insurer or an adjuster or its employee or agent, or a risk 12 manager of a self-employed employer, or another person acting in good faith is not 13 civilly liable for damages resulting from the filing of the report or the furnishing of 14 information required by this section or by the director. 15 (e) The director may investigate facts reported under this section and may 16 refer facts indicating a possible violation of law to the appropriate prosecutor or 17 agency. If the director determines that there is credible evidence that a person 18 obtained a payment, compensation, medical treatment, or other benefit provided under 19 this chapter by a fraudulent act or false or misleading statement or representation as 20 provided in (a) of this section, the director shall notify the affected employer, insurer, 21 and adjuster upon conclusion of the investigation. If the fraudulent act or false or 22 misleading statement or representation was perpetrated against the division, the 23 director may file a petition as provided in AS 23.30.110 for an order of forfeiture 24 against the person, precluding, in whole or in part, the person from future payment, 25 compensation, medical treatment, or other benefit provided under this chapter. 26 (f) The papers, reports, documents, and evidence received under this section or 27 in an investigation arising from information received under this section are not subject 28 to public inspection for so long as the director considers confidentiality to be in the 29 public interest or reasonably necessary to complete an investigation or protect the 30 person investigated from unwarranted injury. Papers, reports, documents, and 31 evidence relative to an investigation under this section are confidential and not subject
01 to subpoena unless, after notice to the director and a hearing, a court determines that 02 the director would not be unduly hindered by public inspection. 03 (g) If the material that the director seeks to obtain is located outside the state, 04 the material may be made available to the director to examine at the place where the 05 material is located. The director may designate representatives, including officials of 06 the state in which the material is located, to inspect the material on behalf of the 07 director. The director may respond to a request from an official of another state for 08 similar material. 09 (h) In this section, "fraudulent act" includes 10 (1) to knowingly pretend injury or disability with intent to defraud or 11 obtain a benefit under this chapter; 12 (2) to knowingly conceal, suppress, destroy, remove, or alter records 13 with intent to defraud or obtain a benefit under this chapter; 14 (3) to knowingly assist or prepare another person to submit a false or 15 misleading statement in support of a claim for benefits under this chapter with reckless 16 disregard that the person is not entitled to benefits under this chapter; 17 (4) to use force against a person, damage the property of a person, or 18 threaten a person with intent to improperly influence the opinion of a witness, a 19 physician, or other health care provider; 20 (5) except as otherwise authorized under this chapter, to knowingly 21 confer, offer to confer, solicit, agree to accept, or accept property, services, or a 22 benefit 23 (A) to refer an employee to a physician or other health care 24 provider; or 25 (B) for providing medical treatment, services, medicines, or 26 supplies to an employee if the property, services, or benefit is in addition to 27 payment by the employer, insurer, or adjuster allowed under this chapter. 28 * Sec. 39. AS 23.30.250(a) is amended to read: 29 (a) A person, including an employee, employer, physician, medical 30 provider, or the representative of a person who (1) knowingly makes a false or 31 misleading statement, representation, or submission related to a benefit under this
01 chapter; (2) knowingly assists, abets, solicits, or conspires in making a false or 02 misleading submission affecting the payment, coverage, or other benefit under this 03 chapter; (3) knowingly misclassifies employees or engages in deceptive leasing 04 practices for the purpose of evading full payment of workers' compensation insurance 05 premiums; or (4) employs or contracts with a person or firm to coerce or encourage an 06 individual to file a fraudulent compensation claim is civilly liable to a person 07 adversely affected by the conduct, is guilty of theft by deception as defined in 08 AS 11.46.180, and may be punished as provided by AS 11.46.120 - 11.46.150. 09 * Sec. 40. AS 23.30.250(b) is repealed and reenacted to read: 10 (b) To the extent allowed by law, in a civil action under (a) of this section, an 11 award of damages by a court or jury may include compensatory damages, subject to 12 AS 09.17. Attorney fees may be awarded to a prevailing party as allowed by law. 13 * Sec. 41. AS 23.30.260 is amended by adding a new subsection to read: 14 (b) Notwithstanding AS 23.30.145 and (a) of this section, approval of a fee is 15 not required if the fee does not exceed $300 and is a one-time-only charge to an 16 employee by an attorney licensed in this state who performed legal services with 17 respect to the employee's claim but did not enter an appearance. 18 * Sec. 42. AS 23.30.395(17) is amended to read: 19 (17) "injury" means accidental injury or death arising out of and in the 20 course of employment, and an occupational disease or infection that [WHICH] arises 21 naturally out of the employment or that [WHICH] naturally or unavoidably results 22 from an accidental injury; "injury" includes breakage or damage to eyeglasses, hearing 23 aids, dentures, or any prosthetic devices that [WHICH] function as part of the body 24 and further includes an injury caused by the wilful act of a third person directed 25 against an employee because of the employment; "injury" does not include 26 aggravation, acceleration, or combination with a preexisting condition, unless the 27 employment is the major contributing cause of the disability or need for medical 28 treatment, and does not include mental injury caused by mental stress, unless it is 29 established that (A) the work stress was extraordinary and unusual in comparison to 30 pressures and tensions experienced by individuals in a comparable work environment, 31 and (B) the work stress was the predominant cause of the mental injury; the amount of
01 work stress shall be measured by actual events; a mental injury is not considered to 02 arise out of and in the course of employment if it results from a disciplinary action, 03 work evaluation, job transfer, layoff, demotion, termination, or similar action, taken in 04 good faith by the employer; 05 * Sec. 43. AS 23.30.395 is amended by adding new paragraphs to read: 06 (35) "attending physician" means one of the following designated by 07 the employee under AS 23.30.095(a) or (b): 08 (A) a licensed medical doctor; 09 (B) a licensed doctor of osteopathy; 10 (C) a licensed dentist or dental surgeon; 11 (D) a licensed physician assistant acting under supervision of a 12 licensed medical doctor or doctor of osteopathy; 13 (E) a licensed nurse practitioner acting under supervision of a 14 licensed medical doctor or doctor of osteopathy; or 15 (F) a licensed chiropractor; 16 (36) "commissioner" means the commissioner of labor and workforce 17 development; 18 (37) "department" means the Department of Labor and Workforce 19 Development; 20 (38) "director" means the director of the division of workers' 21 compensation in the department; 22 (39) "division" means the division of workers' compensation in the 23 department. 24 * Sec. 44. AS 37.05.146(c) is amended by adding a new paragraph to read: 25 (78) workers' compensation benefits guaranty fund (AS 23.30.082). 26 * Sec. 45. AS 39.25.120(c)(14) is amended to read: 27 (14) the rehabilitation administrator of the division of workers' 28 compensation [WORKERS' COMPENSATION BOARD]; 29 * Sec. 46. AS 23.30.095(f), 23.30.095(l), and 23.30.095(m) are repealed. 30 * Sec. 47. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 TASK FORCE ON WORKERS' COMPENSATION. (a) There is established in the 02 legislative branch the Task Force on Workers' Compensation to address the improvement of 03 the Alaska workers' compensation system, including 04 (1) a review of workers' compensation and insurance reform measures 05 throughout the United States and an assessment of the effects of those reforms; 06 (2) an analysis and assessment of proposals for workers' compensation and 07 workers' compensation liability insurance reform in Alaska; 08 (3) a review of current Alaskan workers' compensation benefits and costs and 09 an assessment of needed changes; 10 (4) a review of compliance with current Alaska workers' compensation laws; 11 (5) a consideration of other issues determined to be relevant by members of 12 the task force. 13 (b) The task force established under (a) of the section shall consist of 11 voting 14 members. One member shall be a state senator appointed by the president of the senate, one 15 member shall be a state representative appointed by the speaker of the house of 16 representatives, and one member shall be a member of the minority in either house jointly 17 selected by the president of the senate and the speaker of the house of representatives. Eight 18 members shall be appointed jointly by the president of the senate and speaker of the house of 19 representatives as follows: 20 (1) a representative of the Alaska State Medical Association; 21 (2) an attorney who represents employees in workers' compensation cases; 22 (3) an attorney who represents employers in workers' compensation cases; 23 (4) a representative of the insurance industry that provides workers' 24 compensation insurance; 25 (5) a representative from organized labor; 26 (6) a person representing employees not represented by organized labor; 27 (7) a person representing small businesses; and 28 (8) a person representing larger businesses. 29 (c) The task force established under (a) of this section 30 (1) may begin work immediately upon the appointment of its full voting 31 membership and shall meet at least three times telephonically or in person;
01 (2) shall hold public hearings and may perform research related to its work; 02 (3) may meet in the interim and vote telephonically; 03 (4) shall report its written findings and give a copy of proposed legislation and 04 other recommendations to the president of the senate and the speaker of the house of 05 representatives before December 1, 2005; and 06 (5) is terminated on February 1, 2006. 07 * Sec. 48. The uncodified law of the State of Alaska is amended by adding a new section to 08 read: 09 APPLICABILITY. The amendment to AS 23.30.175(b) made by sec. 31 of this Act 10 applies to an injury occurring on or after the effective date of sec. 31 of this Act. 11 * Sec. 49. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 TRANSITIONAL PROVISIONS. (a) Litigation, investigations, and other 14 proceedings pending under a law amended or repealed by this Act or in connection with 15 functions transferred by this Act continue in effect and may be continued and completed, 16 notwithstanding a transfer or amendment or repeal provided for in this Act. 17 (b) Certificates, decisions, and orders issued under authority of a law amended or 18 repealed by this Act remain in effect for the term issued, or until revoked, vacated, or 19 otherwise modified under the provisions of this Act. Contracts, rights, liabilities, and 20 obligations created by or under a law amended or repealed by this Act and in effect on the day 21 before the effective date of this section remain in effect, notwithstanding this Act's taking 22 effect. 23 * Sec. 50. The uncodified law of the State of Alaska is amended by adding a new section to 24 read: 25 TRANSITION: REGULATIONS. The Department of Labor and Workforce 26 Development and the director of insurance in the Department of Commerce, Community, and 27 Economic Development may proceed to adopt regulations necessary to implement the 28 respective provisions for which each is responsible under this Act. The regulations take effect 29 under AS 44.62 (Administrative Procedure Act), but not before the effective date of the 30 statutory changes. 31 * Sec. 51. The uncodified law of the State of Alaska is amended by adding a new section to
01 read: 02 TRANSITION: MEDICAL SERVICES REVIEW COMMITTEE STUDY AND 03 REPORT. The medical services review committee appointed by the commissioner of labor 04 and workforce development under AS 23.30.095(j), as amended by sec. 24 of this Act, shall 05 proceed to study medical and related benefits provided under AS 23.30 to determine the 06 appropriateness, necessity, delivery, and cost of the benefits and shall, before the end of the 07 first week of the First Regular Session of the Twenty-Fifth Alaska State Legislature, provide 08 to the legislature and the commissioner of labor and workforce development a report of the 09 results of the study. 10 * Sec. 52. Section 50 of this Act takes effect immediately under AS 01.10.070(c). 11 * Sec. 53. Sections 1 - 4, 31, and 51 of this Act take effect September 1, 2005. 12 * Sec. 54. Except as provided in secs. 52 and 53 of this Act, this Act takes effect August 1, 13 2005.