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SB 206: "An Act relating to workers' compensation reemployment benefits; establishing a workers' compensation stay-at-work program; and providing for an effective date."

00 SENATE BILL NO. 206 01 "An Act relating to workers' compensation reemployment benefits; establishing a 02 workers' compensation stay-at-work program; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 23.30.005(h) is amended to read: 05 (h) The department shall adopt rules for all panels [,] and procedures for the 06 periodic selection, retention, and removal of both rehabilitation specialists and 07 physicians under AS 23.30.041, 23.30.043, and 23.30.095, and shall adopt regulations 08 to carry out the provisions of this chapter. The department may by regulation provide 09 for procedural, discovery, or stipulated matters to be heard and decided by the 10 commissioner or a hearing officer designated to represent the commissioner rather 11 than a panel. If a procedural, discovery, or stipulated matter is heard and decided by 12 the commissioner or a hearing officer designated to represent the commissioner, the 13 action taken is considered the action of the full board on that aspect of the claim. 14 Process and procedure under this chapter shall be as summary and simple as possible.

01 The department, the board, or a member of it may for the purposes of this chapter 02 subpoena witnesses, administer or cause to be administered oaths, and [MAY] 03 examine or cause to have examined the parts of the books and records of the parties to 04 a proceeding that relate to questions in dispute. The superior court, on application of 05 the department, the board, or any members of it, shall enforce the attendance and 06 testimony of witnesses and the production and examination of books, papers, and 07 records. 08 * Sec. 2. AS 23.30.041(b) is amended to read: 09 (b) The administrator shall 10 (1) enforce regulations adopted by the board to implement this section; 11 (2) recommend regulations for adoption by the board that establish 12 performance and reporting criteria for rehabilitation specialists; 13 (3) enforce the quality and effectiveness of reemployment benefits 14 provided for under this section; 15 (4) review on an annual basis the performance of rehabilitation 16 specialists to determine continued eligibility for delivery of rehabilitation services; 17 (5) submit to the department, on or before May 1 of each year, a report 18 of reemployment benefits provided under this section for the previous calendar year; 19 the report must include a general section, sections related to each rehabilitation 20 specialist employed under this section, and a statistical summary of all rehabilitation 21 cases, including 22 (A) the estimated and actual cost of each active rehabilitation 23 plan; 24 (B) the estimated and actual time of each rehabilitation plan; 25 (C) a status report on all individuals requesting, waiving, 26 beginning, completing, or terminating a reemployment benefits program 27 including 28 (i) reasons for denial, waiver, suspension, or 29 termination; 30 (ii) dates of completion and return to work; and 31 (iii) other information required by the director;

01 (D) the cost of reemployment benefits; 02 (E) status reports of all individuals who successfully completed 03 a reemployment plan that includes 04 (i) the plan's occupational goal and whether the 05 individual obtained work after completion in the planned or another 06 occupation; and 07 (ii) the individual's employment status six months, one 08 year, and two years after reemployment plan completion; 09 (6) maintain a list of rehabilitation specialists who meet the 10 qualifications established under this section; 11 (7) promote awareness among physicians, adjusters, injured workers, 12 employers, employees, attorneys, training providers, and rehabilitation specialists of 13 the reemployment program established in this subsection; 14 (8) submit to the department, on or before October 1 of each year, 15 a report of stay-at-work benefits provided under AS 23.30.043 for the previous 16 calendar year; the report must include a general section, sections related to each 17 rehabilitation specialist employed under AS 23.30.043, and a statistical summary 18 of all stay-at-work cases, including 19 (A) the estimated and actual cost of each active stay-at- 20 work plan; 21 (B) the estimated and actual time of each stay-at-work 22 plan; 23 (C) a status report on all individuals requesting, beginning, 24 completing, or terminating a stay-at-work plan including 25 (i) reasons for denial or termination; 26 (ii) dates of completion and return to work; and 27 (iii) other information required by the director; 28 (D) the cost of stay-at-work benefits; 29 (E) status reports of all individuals who successfully 30 completed a stay-at-work plan that includes 31 (i) the plan's occupational goal and whether the

01 individual returned to work after completion of the stay-at-work 02 plan; and 03 (ii) the individual's employment status six months, 04 one year, and two years after stay-at-work plan completion. 05 * Sec. 3. AS 23.30.041(c) is amended to read: 06 (c) An employee and an employer may stipulate to the employee's eligibility 07 for reemployment benefits at any time. If an employee suffers a compensable injury 08 and, as a result of the injury, the employee is totally unable, for 25 [45] consecutive 09 days, to return to the employee's employment at the time of injury, the administrator 10 shall notify the employee of the employee's rights under this section within 14 days 11 after the 25th [45TH] day. Within 10 days after the employee receives the 12 administrator's notification of the employee's rights, the employee shall elect, and 13 notify the administrator and the employer of the election, whether to participate 14 in the reemployment benefits process in accordance with this section or the stay- 15 at-work benefits program established under AS 23.30.043. Except as provided in 16 AS 23.30.043, if [IF] the employee is totally unable to return to the employee's 17 employment for 90 [60] consecutive days as a result of the injury, the employee or 18 employer may request an eligibility evaluation. The administrator may approve the 19 request if the employee's injury may permanently preclude the employee's return to the 20 employee's occupation at the time of the injury. Except as provided in AS 23.30.043, 21 if [IF] the employee is totally unable to return to the employee's employment at the 22 time of the injury for 120 [90] consecutive days as a result of the injury, the 23 administrator shall, without a request, order an eligibility evaluation unless a 24 stipulation of eligibility was submitted. If the administrator approves a request or 25 orders an evaluation, the administrator shall, on a rotating and geographic basis, select 26 a rehabilitation specialist from the list maintained under (b)(6) of this section to 27 perform the eligibility evaluation. If the person that employs a rehabilitation specialist 28 selected by the administrator to perform an eligibility evaluation under this subsection 29 is performing any other work on the same workers' compensation claim involving the 30 injured employee, the administrator shall select a different rehabilitation specialist. 31 * Sec. 4. AS 23.30.041(f) is amended to read:

01 (f) An employee is not eligible for reemployment benefits if 02 (1) the employer offers employment within the employee's predicted 03 post-injury physical capacities at a wage equivalent to at least the state minimum wage 04 under AS 23.10.065 or 75 percent of the worker's gross hourly wages at the time of 05 injury, whichever is greater, and the employment prepares the employee to be 06 employable in other jobs that exist in the labor market; 07 (2) the employee previously declined the development of a 08 reemployment benefits plan under (g) of this section, received a job dislocation benefit 09 under (g)(2) of this section, and returned to work in the same or similar occupation in 10 terms of physical demands required of the employee at the time of the previous injury; 11 (3) the employee has been previously rehabilitated in a former 12 workers' [WORKER'S] compensation claim and returned to work in the same or 13 similar occupation in terms of physical demands required of the employee at the time 14 of the previous injury; [OR] 15 (4) at the time of medical stability, no permanent impairment is 16 identified or expected; 17 (5) the employee fails to timely notify the administrator and the 18 employer of the employee's election under (c) of this section, unless the parties 19 submit to the administrator a stipulation to a reemployment benefits eligibility 20 evaluation or to the employee's eligibility for reemployment benefits; 21 (6) the employee completed a stay-at-work plan under 22 AS 23.30.043; or 23 (7) the employee has not cooperated with the stay-at-work benefits 24 program under AS 23.30.043(l). 25 * Sec. 5. AS 23.30 is amended by adding a new section to article 1 to read: 26 Sec. 23.30.043. Stay-at-work benefits program. (a) The stay-at-work benefits 27 program is established in the division. The division shall designate a member of the 28 division staff as coordinator of the stay-at-work benefits program. 29 (b) Within 14 days after an employee's election under AS 23.30.041(c) to 30 participate in the program, the administrator shall, on a rotating and geographic basis, 31 select a rehabilitation specialist from the list maintained under AS 23.30.041(b)(6) to

01 develop a stay-at-work plan and provide services under the plan. In selecting a 02 rehabilitation specialist, the administrator shall consider the rehabilitation specialist's 03 ability to accept and promptly provide program services and the rehabilitation 04 specialist's expertise and relevant experience relating to the employee's type of injury 05 or challenges specific to returning the employee to work with the employer. If the 06 person that employs a rehabilitation specialist selected by the administrator is 07 performing any other work on the same workers' compensation claim involving the 08 employee, the administrator shall select a different rehabilitation specialist. 09 (c) Within 60 days after the administrator selects the rehabilitation specialist, 10 the rehabilitation specialist shall 11 (1) develop a stay-at-work plan and provide the plan, in a format 12 prescribed by the director, to the employee, employer, program coordinator, and the 13 employee's attending physician; or 14 (2) provide the employee, employer, and the administrator with a 15 determination and findings supporting the determination, in a format prescribed by the 16 director, that the rehabilitation specialist is unable to develop a stay-at-work plan. 17 (d) The board shall establish by regulation the standards and procedures a 18 rehabilitation specialist must use in developing a stay-at-work plan and the contents 19 that the plan must include. 20 (e) The employee's attending physician shall provide a written opinion of 21 whether the employee has the permanent physical capacities to participate in a stay-at- 22 work plan. The failure of the employee's attending physician to provide an opinion 23 under this subsection constitutes grounds for a determination that the rehabilitation 24 specialist is unable to develop a stay-at-work plan under (c)(2) of this section. 25 (f) Within 14 days after the program coordinator receives a stay-at-work plan, 26 the program coordinator shall approve or deny the plan and notify the parties of the 27 decision. Within 30 days after the program coordinator notifies the parties under this 28 subsection, a party may request that the administrator review the plan. Within 14 days 29 after the administrator receives a request to review the plan, the administrator shall 30 issue a decision approving or denying the plan. 31 (g) Within 14 days after the administrator receives a determination under

01 (c)(2) of this section, the administrator shall decide whether the information in the 02 board's case file for the employee's workers' compensation claim supports the 03 rehabilitation specialist's determination and findings. If the administrator decides the 04 case file supports the rehabilitation specialist's determination and findings, the 05 administrator shall, within 10 days after the administrator's decision, notify the 06 employee and employer of the decision and notify the employee that the employee is 07 no longer eligible for stay-at-work benefits and may pursue reemployment benefits in 08 accordance with AS 23.30.041. If the administrator decides the case file does not 09 support the rehabilitation specialist's determination and findings, the administrator 10 shall, within 10 days after the administrator's decision, notify the employee, employer, 11 and rehabilitation specialist of the decision and 12 (1) notify the employee, employer, and rehabilitation specialist what 13 additional information is needed to develop a stay-at-work plan, who must submit the 14 information, and the date by which the information must be submitted; or 15 (2) select a different rehabilitation specialist in accordance with (b) of 16 this section to develop a stay-at-work plan and provide services under the plan. 17 (h) Within 10 days after the administrator notifies the parties of a decision 18 under (f) or (g) of this section, a party may seek review of the decision by requesting a 19 hearing under AS 23.30.110. The board shall uphold the decision of the administrator 20 unless evidence is submitted supporting an allegation of abuse of discretion on the part 21 of the administrator. The board shall render a decision within 30 days after completion 22 of the hearing. 23 (i) Only a rehabilitation specialist may develop a stay-at-work plan, provide 24 services under the plan, and make a determination and findings under this section. A 25 person who is not a rehabilitation specialist may perform work related to the stay-at- 26 work plan if the work is performed under the direct supervision of a rehabilitation 27 specialist employed in the same firm and location. The employer shall pay the fees 28 charged by the rehabilitation specialist or other person described in this subsection for 29 providing services under this section. 30 (j) The cost of the stay-at-work benefits incurred under this section shall be 31 the responsibility of the employer, shall be paid on an expense incurred basis, and may

01 not exceed $3,000, exclusive of the fees charged by the rehabilitation specialist or 02 other person described in (i) of this section. 03 (k) Stay-at-work benefits terminate two years from the date the program 04 coordinator, administrator, or board approves the stay-at-work plan, whichever is later. 05 (l) After the employee has elected to participate in the program, and upon the 06 request of the employer, the administrator shall decide whether the employee has not 07 cooperated in the program. The administrator shall hold a hearing within 30 days after 08 the administrator receives a request from the employer for a hearing. The 09 administrator shall issue a decision within 14 days after the hearing. Within 10 days 10 after the administrator notifies the parties of the decision, either party may seek review 11 of the decision by requesting a hearing under AS 23.30.110. The board shall uphold 12 the decision of the administrator unless evidence is submitted supporting an allegation 13 of abuse of discretion on the part of the administrator. The board shall render a 14 decision within 30 days after completion of the hearing. If the employee is found to 15 have not cooperated with the program, the employer may terminate stay-at-work 16 benefits and disability benefits on the date on which a finding of noncooperation is 17 made under this subsection. Noncooperation means the employee's unreasonable 18 failure to 19 (1) maintain contact with the rehabilitation specialist; 20 (2) cooperate with the rehabilitation specialist in developing a stay-at- 21 work plan; 22 (3) comply with the employee's responsibilities outlined in the stay-at- 23 work plan; or 24 (4) participate in the stay-at-work plan or in a plan activity. 25 (m) An employee is not eligible for stay-at-work benefits if the employee fails 26 to timely notify the administrator and the employer of the employee's election under 27 AS 23.30.041(c), unless the parties submit to the administrator a stipulation that the 28 employee may participate in the program. 29 (n) An employer may elect not to participate or continue to participate in a 30 stay-at-work plan at any time before the employee completes the plan. If an employer 31 elects not to participate under this subsection, the employer shall notify the employee,

01 the program coordinator, and, if applicable, the rehabilitation specialist of the election. 02 The notice must be in the format prescribed by the director and inform the employee 03 that the employee is no longer eligible for stay-at-work benefits and may pursue 04 reemployment benefits in accordance with AS 23.30.041. The notice of the election is 05 effective the day after the notice is served on the employee, the program coordinator, 06 or, if applicable, the rehabilitation specialist, whichever is later. The employer is 07 responsible for the cost of the stay-at-work benefits incurred before the notice 08 becomes effective. 09 (o) In this section, 10 (1) "administrator" means the reemployment benefits administrator 11 employed under AS 23.30.041(a); 12 (2) "plan" or "stay-at-work plan" means a plan developed by a 13 rehabilitation specialist under this section to return an employee to work for the 14 employer; 15 (3) "program" means the stay-at-work benefits program established in 16 this section; 17 (4) "program coordinator" means the division staff member designated 18 as the coordinator of the program; 19 (5) "rehabilitation specialist" has the meaning given in 20 AS 23.30.041(r); 21 (6) "stay-at-work benefits" means benefits provided under the 22 program. 23 * Sec. 6. AS 23.30.100(a) is amended to read: 24 (a) Notice to an employer of an injury or death in respect to which 25 compensation is payable under this chapter shall be given within 15 [30] days after the 26 date of the [SUCH] injury or death [TO THE EMPLOYER]. 27 * Sec. 7. AS 23.30.105(a) is amended to read: 28 (a) The right to compensation for disability under this chapter is barred unless 29 a claim for it is filed within two years after the employee has knowledge of the nature 30 of the employee's disability and its relation to the employment and after disablement. 31 However, the maximum time for filing the claim in any event other than arising out of

01 an occupational disease shall be four years from the date of injury, and the right to 02 compensation for death is barred unless a claim therefor is filed within one year after 03 the death, except that, if payment of compensation has been made without an award on 04 account of the injury or death, a claim may be filed within two years after the date of 05 the last payment of benefits under AS 23.30.041, 23.30.043, 23.30.180, 23.30.185, 06 23.30.190, 23.30.200, or 23.30.215. It is additionally provided that, in the case of 07 latent defects pertinent to and causing compensable disability, the injured employee 08 has full right to claim as shall be determined by the board, time limitations 09 notwithstanding. 10 * Sec. 8. This Act takes effect January 1, 2025.