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Comprehensive Workers' Compensation Reform Bill and Extension of Senior Benefits Signed Into Law
Anchorage – On Thursday, July 11, Governor Dunleavy signed Senate Bill 147 into law, which encompasses provisions from House Bill 239, Senate Bill 170, Senate Bill 183, and Senate Bill 206. This comprehensive bill aims to significantly enhance the support and resources available to injured workers, streamline administrative processes, and ensure timely benefits while also including provisions supporting our senior populations.
Senate Bill 147, sponsored by Senator James Kaufman, R-Anchorage, establishes critical reforms to Alaska’s Workers’ Compensation System, focusing on the following key areas:
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Return-to-Work Emphasis: The bill shifts the reemployment system's focus from retraining for new careers to helping injured workers return to their preferred professions. This change addresses the outdated and burdensome aspects of the current system.
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Updated Reimbursement Rates: Financial compensations for required retraining are adjusted to better reflect current economic realities, enabling injured workers to earn comparable wages.
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Administrative Simplification: The bill reduces bureaucratic hurdles, accelerates recovery and employment processes, and modernizes job analysis responsibilities to ensure effective reemployment plans.
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Streamlined Timelines: Improved alignment of timelines and reporting requirements reduces administrative costs and duplicative reporting, enhancing efficiency.
"I am proud of the work we accomplished in Senate Bill 147. These changes will significantly improve the efficiency of our workers' compensation system, helping injured workers to return to their preferred professions more swiftly and with financial support that reflects today’s economic realities,” said Sen. James Kaufman. “Our goal is to reduce bureaucratic hurdles and ensure that our reemployment plans are both effective and timely, ultimately benefiting workers and employers alike."
Senate Bill 183, introduced by the Senate Labor and Commerce Committee and incorporated into SB 147, ensures the Workers’ Compensation Benefits Guaranty Fund can retain its fiscal year-end balance. This change guarantees that funds are available to make timely payments to injured workers. Previously, year-end sweeps sent the Fund’s balance to the State’s General Fund, often leaving it empty when benefits were needed.
"Senate Bill 183 is a crucial step towards ensuring that our injured workers receive the support they need without unnecessary delays. By exempting the Workers’ Compensation Benefits Guarantee Fund from the annual Constitutional sweep, we are prioritizing the timely and reliable payment of benefits to those who are most vulnerable,” said Senator Jesse Bjorkman, R-Nikiski, Chair of the Labor and Commerce Committee. “This legislation underscores our commitment to protecting the financial security of injured employees and upholding the integrity of our workers' compensation system."
Senate Bill 206, sponsored by Senator Elvi Gray-Jackson, D-Anchorage, establishes the Alaska State Workers' Rehabilitation and Return-to-Work (SAW/RTW) program. This voluntary initiative provides injured workers with the support needed to return to their jobs or modified positions with the same employer. It creates a Vocational Rehabilitation Counselor position within the Department of Labor and Workforce Development who will coordinate between employees, employers, and physicians to maintain workforce engagement and productivity.
“Senate Bill 206 leverages successful models from other states to reduce employee absences and foster a supportive work environment,” said Senator Gray-Jackson. “By implementing the Stay-at-Work and Return-to-Work (SAW/RTW) Program, we are aiding individual workers and strengthening the overall stability and resilience of Alaska's economy. This program is a testament to our commitment to maintaining a healthy, productive, and inclusive workforce for the benefit of all Alaskans."
House Bill 239 was also introduced on the House Floor as an amendment to SB 147 in collaboration with Representative Andy Josephson, D-Anchorage. These provisions represent a significant step forward in recognizing the mental health challenges faced by first responders, correctional officers, emergency medical dispatchers, peace officers, and similar professions. By establishing a presumption that an employee’s PTSD claim is compensable, the bill acknowledges the often invisible yet profound impact of trauma experienced by these individuals in the line of duty. This targeted approach is crucial, as it ensures that those who are frequently exposed to highly stressful and traumatic situations receive the necessary support and compensation. Unlike visible injuries such as broken bones, PTSD and other mental health conditions can be harder to diagnose and substantiate, making this legislative effort an essential measure to protect and validate the experiences of first responders.
Senate Bill 147 also included Senate Bill 170, which extends Alaska’s Senior Benefits program to June 30, 2034. Originally sponsored by Senator Scott Kawasaki, D-Fairbanks, the Senior Benefits Program, established in 2007, plays a crucial role in the lives of over 10,000 Alaskans aged 65 and older. The assistance, which ranges from $76 to $250 per month depending on income level, is a lifeline that helps cover critical expenses such as food, heating, electricity, transportation, and prescription medication. Eligibility is determined by income levels at 75, 100, and 175 percent of the federal poverty level, subject to appropriation from the Alaska State Legislature.
“Extending the Senior Benefits Program for the next decade is crucial for providing our seniors with the stability they deserve, said Sen. Scott Kawasaki. “This program has been a lifeline for over 10,000 low-income seniors across Alaska, offering them essential support for daily expenses such as food, heating, electricity, transportation, and prescription medication. Our seniors have spent their lives building this great state, and it's our duty to ensure they can live with dignity and security.”
"By using Senate Bill 147 as the vehicle for these comprehensive reforms, we are ensuring a holistic approach that benefits our working population while also looking out for one of our most vulnerable populations,” said Sen. James Kaufman. “Our seniors are our pioneers in this young state, and it's vital we support them so they can maintain their quality of life and continue to live near their loved ones after all their contributions.”
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