(a) Each insurer providing workers’ compensation insurance and each employer who is self-insured or uninsured for purposes of Alaska Stat. Chapter 23.30 in this state shall pay an annual service fee to the department for the administrative expenses of the state for workers’ safety programs under Alaska Stat. Chapter 18.60 and the workers’ compensation program under Alaska Stat. Chapter 23.30 as follows:

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Terms Used In Alaska Statutes 23.05.067

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • state: means the State of Alaska unless applied to the different parts of the United States and in the latter case it includes the District of Columbia and the territories. See Alaska Statutes 01.10.060
(1) for each employer,

(A) except as provided in (b) of this section, the service fee shall be paid each year to the department at the time that the annual report is required to be filed under Alaska Stat. § 23.30.155 (m) or (n); and
(B) the service fee is 2.9 percent of all payments reported to the division of workers’ compensation in the department under Alaska Stat. § 23.30.155 (m) or (n), except second injury fund payments; and
(2) for each insurer, the director of the division of insurance shall, under (e) of this section, deposit from funds received from the insurer under Alaska Stat. § 21.09.210 a service fee of 2.5 percent of the direct premium income for workers’ compensation insurance received by the insurer during the year ending on the preceding December 31, subject to all the deductions specified in Alaska Stat. § 21.09.210 (b).
(b) An employer who is required to pay an annual service fee under (a) of this section may elect to pay in yearly increments over a five-year period the portion of the service fee due under (a) of this section as a result of a settlement of over $50,000 approved under Alaska Stat. § 23.30.012. An election under this subsection must be made in the first year that a service fee would be due as a result of the settlement. The employer shall notify the department of an election under this subsection. If an election is made, payment of each yearly increment that is due shall be made at the time the annual report is required to be filed under Alaska Stat. § 23.30.155 (m) or (n).
(c) Payment of the annual service fee under this section shall be made in the manner and by the method specified by the department.
(d) If an employer who is required to pay an annual service fee under this section does not pay the required amount of the service fee by the time specified in this section, the employer shall pay a civil penalty of $100 for the first day the payment is late and $10 a day for each additional day the payment is late. The civil penalty under this subsection is in addition to any civil penalties imposed for late filings of reports under Alaska Stat. § 23.30.155 (m).
(e) Annual service fees and civil penalties collected under this section and Alaska Stat. § 23.30.155 (c) and (m) shall be deposited in the workers’ safety and compensation administration account in the state treasury. Under Alaska Stat. § 37.05.146 (c), the service fees and civil penalties shall be accounted for separately, and appropriations from the account are not made from the unrestricted general fund. The legislature may appropriate money from the account for expenditures by the department for necessary costs incurred by the department in the administration of the workers’ safety programs contained in Alaska Stat. Chapter 18.60 and of the Alaska Workers’ Compensation Act contained in Alaska Stat. Chapter 23.30. Nothing in this subsection creates a dedicated fund or dedicates the money in the account for a specific purpose. Money deposited in the account does not lapse at the end of a fiscal year unless otherwise provided by an appropriation.
(f) The department may adopt regulations to implement this section.
(g) Notwithstanding Alaska Stat. § 21.76.020 (a), a joint insurance arrangement established under Alaska Stat. Chapter 21.76 is subject to the provisions of this section and regulations adopted under this section and, if self-insured, is subject to the annual service fee on behalf of its members.
(h) The department shall grant a credit against the service fee imposed under (a)(1) of this section to an employer if (1) the employer applies to the department for the credit on a form prescribed by the department; (2) the employer provides proof that the employer has paid a premium tax imposed under Alaska Stat. § 21.09.210 on an insurance policy; and (3) workers’ compensation claims have been paid under the insurance policy described in (2) of this subsection and the claims are subject to the service fee imposed under (a) of this section. The credit allowed under this subsection is equal to the amount of the premium tax paid by the employer under the insurance policy, may not exceed the service fee imposed under (a) of this section, and only applies to premium taxes paid by the employer on or after January 1, 2000.
(i) In this section, “insurer” has the meaning given in Alaska Stat. § 21.97.900.
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