HB 314 - WORKERS' COMPENSATION  1:07:00 PM CHAIR RAMRAS announced that the first order of business would be HOUSE BILL NO. 314, "An Act relating to fees and charges for medical treatment or services, the crime of unsworn falsification, investigations, and penalties as they relate to workers' compensation; and providing for an effective date." [Left pending from the hearing on 2/24/10 was the motion to adopt the conceptual amendment to Amendment 1, and the motion to adopt Amendment 1.] CHAIR RAMRAS referred to Amendment 1, labeled 26-LS1354\A.3, Bailey, 2/17/10, which read: Page 1, lines 1 - 2: Delete "the crime of unsworn falsification" Insert "civil damages" Page 1, lines 5 - 9: Delete all material. Page 1, line 10: Delete "Sec. 2" Insert "Section 1" Renumber the following bill sections accordingly. Page 2, lines 15 - 16: Delete "usual, customary, and reasonable" Page 2, lines 17 - 21: Delete "include the most recent Current  Procedural Terminology codes for both category I and  category II medical treatment or other services  published by the American Medical Association;  notwithstanding AS 44.62.010 - 44.62.290, the board  shall update the schedule annually by order" Insert "be based on statistically credible data,  including charges for the most recent category I, II,  and III medical services maintained by the American  Medical Association and the Health Care Procedure  Coding System for medical supplies, injections,  emergency transportation, and other medically related  services, and must result in a schedule that (i)  reflects the cost in the geographical area where  services are provided; and (ii) is at the 90th  percentile" Page 2, line 26, through page 3, line 2: Delete all material and insert:  "* Sec. 2. AS 23.30.250(a) is amended to read: (a) A person who (1) knowingly makes a false or misleading statement, representation, or submission related to a benefit under this chapter; (2) knowingly assists, abets, solicits, or conspires in making a false or misleading submission affecting the payment, coverage, or other benefit under this chapter; (3) knowingly misclassifies employees or engages in deceptive leasing practices for the purpose of evading full payment of workers' compensation insurance premiums; or (4) employs or contracts with a person or firm to coerce or encourage an individual to file a fraudulent compensation claim is guilty of workers'  compensation fraud, which may be punished under  AS 11.46.120 - 11.46.150, and may also be guilty of  perjury and related offenses under AS 11.56.200 -  11.56.230 [CIVILLY LIABLE TO A PERSON ADVERSELY AFFECTED BY THE CONDUCT, IS GUILTY OF THEFT BY DECEPTION AS DEFINED IN AS 11.46.180, AND MAY BE PUNISHED AS PROVIDED BY AS 11.46.120 - 11.46.150].  * Sec. 3. AS 23.30.250(c) is repealed and reenacted to read: (c) In addition to criminal penalties under this section, a person who violates this chapter is liable in a civil action brought by or on behalf of a person who suffers economic damages as a result of the violation for an award of three times the amount of compensatory damages resulting from the violation, subject to adjustment under AS 09.17, and an award of reasonable attorney fees." Renumber the following bill sections accordingly. Page 3, line 19: Delete all material. Renumber the following bill section accordingly. CHAIR RAMRAS then withdrew his conceptual amendment to Amendment 1 such that in its proposed change to AS 23.30.097(a)(1)(D), the words, "is at the 90th percentile" would be replaced with the words, "the amount paid by the preferred provider network of insurers is not to exceed the 90th percentile". The committee took an at-ease from 1:08 p.m. to 1:09 p.m. REPRESENTATIVE HOLMES removed her objection to Amendment 1. There being no further objection, Amendment 1 was adopted. 1:09:44 PM REPRESENTATIVE HERRON moved to report HB 314, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 314(JUD) was reported from the House Judiciary Standing Committee. CHAIR RAMRAS offered his belief that the conceptual amendment to Amendment 1 would not have been detrimental to injured workers but would have enhanced the climate for employers subject to what he termed skyrocketing and escalating workers' compensation insurance premiums. [CSHB 314(JUD) was reported from committee.]