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HOUSE BILL NO. 245
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY REPRESENTATIVE JOSEPHSON
Introduced: 1/20/26
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
"An Act relating to workers' compensation tax rate and service fees; and relating to 1
electronic service of workers' compensation documents." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 21.09.210(b) is amended to read: 4
(b) Each insurer, and each formerly authorized insurer with respect to 5
premiums written while an authorized insurer in this state, shall pay a tax on the total 6
direct premium written during the year ending on the preceding December 31 and paid 7
for the insurance of property or risks resident or located in the state after deducting 8
from the total direct premium income the applicable cancellations, returned premiums, 9
the unabsorbed portion of any deposit premium, all policy dividends, unabsorbed 10
premiums refunded to policyholders, refunds, savings, savings coupons, and other 11
similar returns paid or credited to policyholders with respect to their policies. 12
Deductions may not be made of cash surrender value of policies. Considerations 13
received on annuity contracts are not included in the direct premium income and are 14
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not subject to tax. The tax shall be paid to the director at least annually but not more 1
often than once each quarter on the dates specified by the director. The method of 2
payment must be by the electronic or other payment method specified by the director. 3
Except as provided under (m) of this section, the tax is computed at the rate of 4
(1) for domestic and foreign insurers, except hospital and medical 5
service corporations, 2.7 percent; 6
(2) for hospital and medical service corporations, six percent of their 7
gross premiums less claims paid; 8
(3) for wet marine and transportation insurance, three-quarters of one 9
percent; 10
(4) for workers' compensation insurance, four percent. 11
* Sec. 2. AS 23.05.067(a) is amended to read: 12
(a) Each insurer providing workers' compensation insurance and each 13
employer who is self-insured or uninsured for purposes of AS 23.30 in this state shall 14
pay an annual service fee to the department for the administrative expenses of the state 15
for workers' safety programs under AS 18.60 and the workers' compensation program 16
under AS 23.30 as follows: 17
(1) for each employer, 18
(A) except as provided in (b) of this section, the service fee 19
shall be paid each year to the department at the time that the annual report is 20
required to be filed under AS 23.30.155(m) or (n); and 21
(B) the service fee is a percentage [2.9 PERCENT] of all 22
payments reported to the division of workers' compensation in the department 23
under AS 23.30.155(m) or (n), except second injury fund payments; and 24
(2) for each insurer, the director of the division of insurance shall, 25
under (e) of this section, deposit from funds received from the insurer under 26
AS 21.09.210 a service fee consisting of a percentage [2.5 PERCENT] of the direct 27
premium income for workers' compensation insurance received by the insurer during 28
the year ending on the preceding December 31, subject to all the deductions specified 29
in AS 21.09.210(b). 30
* Sec. 3. AS 23.05.067 is amended by adding a new subsection to read: 31
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(j) The board shall, by regulation, establish, annually review, and, if 1
necessary, adjust the percentages described in (a)(1) and (2) of this section. Each 2
percentage may not exceed four percent. 3
* Sec. 4. AS 23.30.011(c) is amended to read: 4
(c) If an employee is entitled to the benefits of this chapter by reason of an 5
injury sustained in this state in employment by an employer who is domiciled in 6
another state and who has not secured the payment of compensation as required by 7
this chapter, the employer or the employer's carrier may file with the board a 8
certificate, issued by the commission or agency of the other state having jurisdiction 9
over workers' compensation claims, certifying that the employer has secured the 10
payment of compensation under the workers' compensation law of the other state and 11
that with respect to that injury the employee is entitled to the benefits provided under 12
that law. In that event 13
(1) the filing of the certificate shall constitute an appointment by the 14
employer or the employer's carrier of the board as the employer's agent for acceptance 15
of the service of process in a proceeding brought by the employee or the employee's 16
dependents to enforce the employee's or their rights under this chapter on account of 17
the injury; 18
(2) if the employer or carrier is not represented by an authorized 19
representative as described in AS 23.30.110(d), the board shall send to the employer 20
or carrier, by [REGISTERED OR] certified mail to the address shown on the 21
certificate, a true copy of any notice of claim or other process served on the director by 22
the employee or the employee's dependents in any proceeding brought to enforce the 23
employee's or their rights under this chapter, unless the employer or carrier agrees 24
to be served by electronic mail; if the employer or carrier is represented by an 25
authorized representative as described in AS 23.30.110(d), the board shall send 26
the document to the employer's or carrier's authorized representative by 27
electronic mail; 28
(3) if the employer is a qualified self-insurer under the workers' 29
compensation law of the other state, the employer, upon submission of evidence 30
satisfactory to the board of the employer's ability to meet the employer's liability to the 31
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employee under this chapter, shall be considered to be a qualified self-insurer under 1
this chapter; 2
(4) if the employer's liability under the workers' compensation law of 3
another state is insured, the employer's carrier, as to the employee or the employee's 4
dependents only, shall be considered to be an insurer authorized to write insurance 5
under and be subject to this chapter; however, unless its contract with the employer 6
requires it to pay an amount equivalent to the compensation benefits provided by this 7
chapter, its liability for income benefits or medical and related benefits may not 8
exceed the amounts of the benefits for which the insurer would have been liable under 9
the workers' compensation law of the other state; 10
(5) if the amount for which the employer's insurance is liable under (3) 11
and (4) of this subsection is less than the total of the compensation benefits to which 12
the employee is entitled under this chapter, the board may, if it considers it necessary, 13
require the employer to file security satisfactory to the board to secure the payment of 14
benefits due the employee or the employee's dependents under this chapter; and 15
(6) upon compliance with the preceding requirements of this 16
subsection, the employer, as to the employee only, shall be considered to have secured 17
the payment of compensation under this chapter. 18
* Sec. 5. AS 23.30.107(a) is amended to read: 19
(a) Upon written request, an employee shall provide written authority to the 20
employer, carrier, rehabilitation specialist, or reemployment benefits administrator to 21
obtain medical and rehabilitation information relative to the employee's injury. The 22
request must include notice of the employee's right to file a petition for a protective 23
order with the division and, if the employee is not represented by an authorized 24
representative as described in AS 23.30.110(d), must be served by certified mail to 25
the employee's address on the notice of injury or by hand delivery to the employee, 26
unless the employee agrees to be served by electronic mail. If the employee is 27
represented by an authorized representative as described in AS 23.30.110(d), the 28
notice must be served on the employee's authorized representative by electronic 29
mail. This subsection may not be construed to authorize an employer, carrier, 30
rehabilitation specialist, or reemployment benefits administrator to request medical or 31
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other information that is not applicable to the employee's injury. 1
* Sec. 6. AS 23.30.110(b) is amended to read: 2
(b) Within 10 days after a claim is filed the board, in accordance with its 3
regulations, shall notify the employer and any other person, other than the claimant, 4
whom the board considers an interested party that a claim has been filed. If the 5
person is not represented by an authorized representative as described in (d) of 6
this section, the board shall serve the [THE] notice on [MAY BE SERVED 7
PERSONALLY UPON] the employer or other person either personally [,] or [SENT] 8
by certified [REGISTERED] mail, unless the person agrees to be served by 9
electronic mail. If the person is represented by an authorized representative as 10
described in (d) of this section, the board shall serve the notice on the person's 11
authorized representative by electronic mail. 12
* Sec. 7. AS 23.30.110(c) is amended to read: 13
(c) Before a hearing is scheduled, the party seeking a hearing shall file a 14
request for a hearing together with an affidavit stating that the party has completed 15
necessary discovery, obtained necessary evidence, and is prepared for the hearing. An 16
opposing party shall have 10 days after the hearing request is filed to file a response. If 17
a party opposes the hearing request, the board or a board designee shall within 30 days 18
of the filing of the opposition conduct a pre-hearing conference and set a hearing date. 19
If opposition is not filed, the board shall schedule a hearing not [SHALL BE 20
SCHEDULED NO] later than 60 days after the receipt of the hearing request. The 21
board shall give each party at least 10 days' notice of the hearing. If the party is not 22
represented by an authorized representative as described in (d) of this section, 23
the board shall serve the hearing notice [,] either personally or by certified mail, 24
unless the party agrees to be served by electronic mail. If the party is represented 25
by an authorized representative as described in (d) of this section, the board shall 26
serve the hearing notice on the party's authorized representative by electronic 27
mail. After a hearing has been scheduled, the parties may not stipulate to change the 28
hearing date or to cancel, postpone, or continue the hearing, except for good cause as 29
determined by the board. After completion of the hearing the board shall close the 30
hearing record. If a settlement agreement is reached by the parties less than 14 days 31
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before the hearing, the parties shall appear at the time of the scheduled hearing to state 1
the terms of the settlement agreement. [WITHIN 30 DAYS AFTER THE HEARING 2
RECORD CLOSES, THE BOARD SHALL FILE ITS DECISION.] If the employer 3
controverts a claim on a board-prescribed controversion notice and the employee does 4
not request a hearing within two years following the filing of the controversion notice, 5
the claim is denied. 6
* Sec. 8. AS 23.30.110(d) is amended to read: 7
(d) At the hearing the claimant and the employer may each present evidence in 8
respect to the claim. A person [AND] may represent a party in a matter pending 9
before the board if the party authorizes the representation [BE REPRESENTED 10
BY ANY PERSON AUTHORIZED] in writing [FOR THAT PURPOSE]. The 11
authorized representative shall file a written notice of appearance with the board 12
and shall serve a copy of the notice on all parties. The notice must be in a format 13
prescribed by the director and include the representative's electronic mail 14
address and other information prescribed by the board in regulation. 15
* Sec. 9. AS 23.30.110(e) is repealed and reenacted to read: 16
(e) Within 30 days after the hearing record closes, the board shall file the 17
board's decision electronically in the office of the board and serve a copy of the 18
decision on each party. If a party is not represented by an authorized representative as 19
described in (d) of this section, the board shall serve the decision by certified mail to 20
the party's last known address, unless the party agrees to be served by electronic mail. 21
If the party is represented by an authorized representative as described in (d) of this 22
section, the board shall serve a copy of the decision on the party's authorized 23
representative by electronic mail. 24