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SENATE BILL NO. 206
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - SECOND SESSION
BY SENATOR GRAY-JACKSON
Introduced: 1/24/24
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to workers' compensation reemployment benefits; establishing a 1
workers' compensation stay-at-work program; and providing for an effective date." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 23.30.005(h) is amended to read: 4
(h) The department shall adopt rules for all panels [,] and procedures for the 5
periodic selection, retention, and removal of both rehabilitation specialists and 6
physicians under AS 23.30.041, 23.30.043, and 23.30.095, and shall adopt regulations
7
to carry out the provisions of this chapter. The department may by regulation provide 8
for procedural, discovery, or stipulated matters to be heard and decided by the 9
commissioner or a hearing officer designated to represent the commissioner rather 10
than a panel. If a procedural, discovery, or stipulated matter is heard and decided by 11
the commissioner or a hearing officer designated to represent the commissioner, the 12
action taken is considered the action of the full board on that aspect of the claim. 13
Process and procedure under this chapter shall be as summary and simple as possible. 14 33-LS1084\A
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The department, the board, or a member of it may for the purposes of this chapter 1
subpoena witnesses, administer or cause to be administered oaths, and [MAY] 2
examine or cause to have examined the parts of the books and records of the parties to 3
a proceeding that relate to questions in dispute. The superior court, on application of 4
the department, the board, or any members of it, shall enforce the attendance and 5
testimony of witnesses and the production and examination of books, papers, and 6
records. 7
* Sec. 2. AS 23.30.041(b) is amended to read: 8
(b) The administrator shall 9
(1) enforce regulations adopted by the board to implement this section; 10
(2) recommend regulations for adoption by the board that establish 11
performance and reporting criteria for rehabilitation specialists; 12
(3) enforce the quality and effectiveness of reemployment benefits 13
provided for under this section; 14
(4) review on an annual basis the performance of rehabilitation 15
specialists to determine continued eligibility for delivery of rehabilitation services; 16
(5) submit to the department, on or before May 1 of each year, a report 17
of reemployment benefits provided under this section for the previous calendar year; 18
the report must include a general section, sections related to each rehabilitation 19
specialist employed under this section, and a statistical summary of all rehabilitation 20
cases, including 21
(A) the estimated and actual cost of each active rehabilitation 22
plan; 23
(B) the estimated and actual time of each rehabilitation plan; 24
(C) a status report on all individuals requesting, waiving, 25
beginning, completing, or terminating a reemployment benefits program 26
including 27
(i) reasons for denial, waiver, suspension, or 28
termination; 29
(ii) dates of completion and return to work; and 30
(iii) other information required by the director; 31 33-LS1084\A
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(D) the cost of reemployment benefits; 1
(E) status reports of all individuals who successfully completed 2
a reemployment plan that includes 3
(i) the plan's occupational goal and whether the 4
individual obtained work after completion in the planned or another 5
occupation; and 6
(ii) the individual's employment status six months, one 7
year, and two years after reemployment plan completion; 8
(6) maintain a list of rehabilitation specialists who meet the 9
qualifications established under this section; 10
(7) promote awareness among physicians, adjusters, injured workers, 11
employers, employees, attorneys, training providers, and rehabilitation specialists of 12
the reemployment program established in this subsection; 13
(8) submit to the department, on or before October 1 of each year, 14
a report of stay-at-work benefits provided under AS 23.30.043 for the previous 15
calendar year; the report must include a general section, sections related to each 16
rehabilitation specialist employed under AS 23.30.043, and a statistical summary 17
of all stay-at-work cases, including 18
(A) the estimated and actual cost of each active stay-at-19
work plan; 20
(B) the estimated and actual time of each stay-at-work 21
plan; 22
(C) a status report on all individuals requesting, beginning, 23
completing, or terminating a stay-at-work plan including 24
(i) reasons for denial or termination; 25
(ii) dates of completion and return to work; and 26
(iii) other information required by the director; 27
(D) the cost of stay-at-work benefits; 28
(E) status reports of all individuals who successfully 29
completed a stay-at-work plan that includes 30
(i) the plan's occupational goal and whether the 31 33-LS1084\A
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individual returned to work after completion of the stay-at-work 1
plan; and 2
(ii) the individual's employment status six months, 3
one year, and two years after stay-at-work plan completion. 4
* Sec. 3. AS 23.30.041(c) is amended to read: 5
(c) An employee and an employer may stipulate to the employee's eligibility 6
for reemployment benefits at any time. If an employee suffers a compensable injury 7
and, as a result of the injury, the employee is totally unable, for 25 [45] consecutive 8
days, to return to the employee's employment at the time of injury, the administrator 9
shall notify the employee of the employee's rights under this section within 14 days 10
after the 25th [45TH] day. Within 10 days after the employee receives the 11
administrator's notification of the employee's rights, the employee shall elect, and 12
notify the administrator and the employer of the election, whether to participate 13
in the reemployment benefits process in accordance with this section or the stay-14
at-work benefits program established under AS 23.30.043. Except as provided in 15
AS 23.30.043, if [IF] the employee is totally unable to return to the employee's 16
employment for 90 [60] consecutive days as a result of the injury, the employee or 17
employer may request an eligibility evaluation. The administrator may approve the 18
request if the employee's injury may permanently preclude the employee's return to the 19
employee's occupation at the time of the injury. Except as provided in AS 23.30.043, 20
if [IF] the employee is totally unable to return to the employee's employment at the 21
time of the injury for 120 [90] consecutive days as a result of the injury, the 22
administrator shall, without a request, order an eligibility evaluation unless a 23
stipulation of eligibility was submitted. If the administrator approves a request or 24
orders an evaluation, the administrator shall, on a rotating and geographic basis, select 25
a rehabilitation specialist from the list maintained under (b)(6) of this section to 26
perform the eligibility evaluation. If the person that employs a rehabilitation specialist 27
selected by the administrator to perform an eligibility evaluation under this subsection 28
is performing any other work on the same workers' compensation claim involving the 29
injured employee, the administrator shall select a different rehabilitation specialist. 30
* Sec. 4. AS 23.30.041(f) is amended to read: 31 33-LS1084\A
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(f) An employee is not eligible for reemployment benefits if 1
(1) the employer offers employment within the employee's predicted 2
post-injury physical capacities at a wage equivalent to at least the state minimum wage 3
under AS 23.10.065 or 75 percent of the worker's gross hourly wages at the time of 4
injury, whichever is greater, and the employment prepares the employee to be 5
employable in other jobs that exist in the labor market; 6
(2) the employee previously declined the development of a 7
reemployment benefits plan under (g) of this section, received a job dislocation benefit 8
under (g)(2) of this section, and returned to work in the same or similar occupation in 9
terms of physical demands required of the employee at the time of the previous injury; 10
(3) the employee has been previously rehabilitated in a former 11
workers' [WORKER'S] compensation claim and returned to work in the same or 12
similar occupation in terms of physical demands required of the employee at the time 13
of the previous injury; [OR] 14
(4) at the time of medical stability, no permanent impairment is 15
identified or expected; 16
(5) the employee fails to timely notify the administrator and the 17
employer of the employee's election under (c) of this section, unless the parties 18
submit to the administrator a stipulation to a reemployment benefits eligibility 19
evaluation or to the employee's eligibility for reemployment benefits; 20
(6) the employee completed a stay-at-work plan under 21
AS 23.30.043; or 22
(7) the employee has not cooperated with the stay-at-work benefits 23
program under AS 23.30.043(l). 24
* Sec. 5. AS 23.30 is amended by adding a new section to article 1 to read: 25
Sec. 23.30.043. Stay-at-work benefits program. (a) The stay-at-work benefits 26
program is established in the division. The division shall designate a member of the 27
division staff as coordinator of the stay-at-work benefits program. 28
(b) Within 14 days after an employee's election under AS 23.30.041(c) to 29
participate in the program, the administrator shall, on a rotating and geographic basis, 30
select a rehabilitation specialist from the list maintained under AS 23.30.041(b)(6) to 31 33-LS1084\A
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develop a stay-at-work plan and provide services under the plan. In selecting a 1
rehabilitation specialist, the administrator shall consider the rehabilitation specialist's 2
ability to accept and promptly provide program services and the rehabilitation 3
specialist's expertise and relevant experience relating to the employee's type of injury 4
or challenges specific to returning the employee to work with the employer. If the 5
person that employs a rehabilitation specialist selected by the administrator is 6
performing any other work on the same workers' compensation claim involving the 7
employee, the administrator shall select a different rehabilitation specialist. 8
(c) Within 60 days after the administrator selects the rehabilitation specialist, 9
the rehabilitation specialist shall 10
(1) develop a stay-at-work plan and provide the plan, in a format 11
prescribed by the director, to the employee, employer, program coordinator, and the 12
employee's attending physician; or 13
(2) provide the employee, employer, and the administrator with a 14
determination and findings supporting the determination, in a format prescribed by the 15
director, that the rehabilitation specialist is unable to develop a stay-at-work plan. 16
(d) The board shall establish by regulation the standards and procedures a 17
rehabilitation specialist must use in developing a stay-at-work plan and the contents 18
that the plan must include. 19
(e) The employee's attending physician shall provide a written opinion of 20
whether the employee has the permanent physical capacities to participate in a stay-at-21
work plan. The failure of the employee's attending physician to provide an opinion 22
under this subsection constitutes grounds for a determination that the rehabilitation 23
specialist is unable to develop a stay-at-work plan under (c)(2) of this section. 24
(f) Within 14 days after the program coordinator receives a stay-at-work plan, 25
the program coordinator shall approve or deny the plan and notify the parties of the 26
decision. Within 30 days after the program coordinator notifies the parties under this 27
subsection, a party may request that the administrator review the plan. Within 14 days 28
after the administrator receives a request to review the plan, the administrator shall 29
issue a decision approving or denying the plan. 30
(g) Within 14 days after the administrator receives a determination under 31 33-LS1084\A
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(c)(2) of this section, the administrator shall decide whether the information in the 1
board's case file for the employee's workers' compensation claim supports the 2
rehabilitation specialist's determination and findings. If the administrator decides the 3
case file supports the rehabilitation specialist's determination and findings, the 4
administrator shall, within 10 days after the administrator's decision, notify the 5
employee and employer of the decision and notify the employee that the employee is 6
no longer eligible for stay-at-work benefits and may pursue reemployment benefits in 7
accordance with AS 23.30.041. If the administrator decides the case file does not 8
support the rehabilitation specialist's determination and findings, the administrator 9
shall, within 10 days after the administrator's decision, notify the employee, employer, 10
and rehabilitation specialist of the decision and 11
(1) notify the employee, employer, and rehabilitation specialist what 12
additional information is needed to develop a stay-at-work plan, who must submit the 13
information, and the date by which the information must be submitted; or 14
(2) select a different rehabilitation specialist in accordance with (b) of 15
this section to develop a stay-at-work plan and provide services under the plan. 16
(h) Within 10 days after the administrator notifies the parties of a decision 17
under (f) or (g) of this section, a party may seek review of the decision by requesting a 18
hearing under AS 23.30.110. The board shall uphold the decision of the administrator 19
unless evidence is submitted supporting an allegation of abuse of discretion on the part 20
of the administrator. The board shall render a decision within 30 days after completion 21
of the hearing. 22
(i) Only a rehabilitation specialist may develop a stay-at-work plan, provide 23
services under the plan, and make a determination and findings under this section. A 24
person who is not a rehabilitation specialist may perform work related to the stay-at-25
work plan if the work is performed under the direct supervision of a rehabilitation 26
specialist employed in the same firm and location. The employer shall pay the fees 27
charged by the rehabilitation specialist or other person described in this subsection for 28
providing services under this section. 29
(j) The cost of the stay-at-work benefits incurred under this section shall be 30
the responsibility of the employer, shall be paid on an expense
incurred basis, and may 31 33-LS1084\A
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not exceed $3,000, exclusive of the fees charged by the rehabilitation specialist or 1
other person described in (i) of this section. 2
(k) Stay-at-work benefits terminate two years from the date the program 3
coordinator, administrator, or board approves the stay-at-work plan, whichever is later. 4
(l) After the employee has elected to participate in the program, and upon the 5
request of the employer, the administrator shall decide whether the employee has not 6
cooperated in the program. The administrator shall hold a hearing within 30 days after 7
the administrator receives a request from the employer for a hearing. The 8
administrator shall issue a decision within 14 days after the hearing. Within 10 days 9
after the administrator notifies the parties of the decision, either party may seek review 10
of the decision by requesting a hearing under AS 23.30.110. The board shall uphold 11
the decision of the administrator unless evidence is submitted supporting an allegation 12
of abuse of discretion on the part of the administrator. The board shall render a 13
decision within 30 days after completion of the hearing. If the employee is found to 14
have not cooperated with the program, the employer may terminate stay-at-work 15
benefits and disability benefits on the date on which a finding of noncooperation is 16
made under this subsection. Noncooperation means the employee's unreasonable 17
failure to 18
(1) maintain contact with the rehabilitation specialist; 19
(2) cooperate with the rehabilitation specialist in developing a stay-at-20
work plan; 21
(3) comply with the employee's responsibilities outlined in the stay-at-22
work plan; or 23
(4) participate in the stay-at-work plan or in a plan activity. 24
(m) An employee is not eligible for stay-at-work benefits if the employee fails 25
to timely notify the administrator and the employer of the employee's election under 26
AS 23.30.041(c), unless the parties submit to the administrator a stipulation that the 27
employee may participate in the program. 28
(n) An employer may elect not to participate or continue to participate in a 29
stay-at-work plan at any time before the employee completes the plan. If an employer 30
elects not to participate under this subsection, the employer shall notify the employee, 31 33-LS1084\A
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the program coordinator, and, if applicable, the rehabilitation specialist of the election. 1
The notice must be in the format prescribed by the director and inform the employee 2
that the employee is no longer eligible for stay-at-work benefits and may pursue 3
reemployment benefits in accordance with AS 23.30.041. The notice of the election is 4
effective the day after the notice is served on the employee, the program coordinator, 5
or, if applicable, the rehabilitation specialist, whichever is later. The employer is 6
responsible for the cost of the stay-at-work benefits incurred before the notice 7
becomes effective. 8
(o) In this section, 9
(1) "administrator" means the reemployment benefits administrator 10
employed under AS 23.30.041(a); 11
(2) "plan" or "stay-at-work plan" means a plan developed by a 12
rehabilitation specialist under this section to return an employee to work for the 13
employer; 14
(3) "program" means the stay-at-work benefits program established in 15
this section; 16
(4) "program coordinator" means the division staff member designated 17
as the coordinator of the program; 18
(5) "rehabilitation specialist" has the meaning given in 19
AS 23.30.041(r); 20
(6) "stay-at-work benefits" means benefits provided under the 21
program. 22
* Sec. 6. AS 23.30.100(a) is amended to read: 23
(a) Notice to an employer of an injury or death in respect to which 24
compensation is payable under this chapter shall be given within 15 [30] days after the 25
date of the [SUCH] injury or death [TO THE EMPLOYER]. 26
* Sec. 7. AS 23.30.105(a) is amended to read: 27
(a) The right to compensation for disability under this chapter is barred unless 28
a claim for it is filed within two years after the employee has knowledge of the nature 29
of the employee's disability and its relation to the employment and after disablement. 30
However, the maximum time for filing the claim in any event other than arising out of 31 33-LS1084\A
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an occupational disease shall be four years from the date of injury, and the right to 1
compensation for death is barred unless a claim therefor is filed within one year after 2
the death, except that, if payment of compensation has been made without an award on 3
account of the injury or death, a claim may be filed within two years after the date of 4
the last payment of benefits under AS 23.30.041, 23.30.043, 23.30.180, 23.30.185, 5
23.30.190, 23.30.200, or 23.30.215. It is additionally provided that, in the case of 6
latent defects pertinent to and causing compensable disability, the injured employee 7
has full right to claim as shall be determined by the board, time limitations 8
notwithstanding. 9
* Sec. 8. This Act takes effect January 1, 2025. 10