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You can search the entire site. or go to the recent opinions, or the chronological or subject indices. Alaska Public Interest Research Group v. State (09/07/2007) sp-6158

Alaska Public Interest Research Group v. State (09/07/2007) sp-6158, 167 P3d 27

     Notice:   This opinion is subject to correction  before
     publication  in  the  Pacific  Reporter.   Readers  are
     requested to bring errors to the attention of the Clerk
     of  the  Appellate  Courts, 303  K  Street,  Anchorage,
     Alaska 99501, phone (907) 264-0608, fax (907) 264-0878,
     e-mail corrections@appellate.courts.state.ak.us.


            THE SUPREME COURT OF THE STATE OF ALASKA

ALASKA PUBLIC INTEREST )
RESEARCH GROUP, ) Supreme Court No. S- 12341
)
Appellant, ) Superior Court No.
) 3AN-05-11945 CI
v. )
) O P I N I O N
STATE OF ALASKA and FRANK )
H. MURKOWSKI, GOVERNOR, ) No. 6158 - September 7, 2007
)
Appellees. )
)

          Appeal  from the Superior Court of the  State
          of    Alaska,   Third   Judicial    District,
          Anchorage, Sen K. Tan, Judge.

          Appearances: Chancy Croft, Chancy  Croft  Law
          Office,  Anchorage, for Appellant.   Paul  R.
          Lyle,   Senior  Assistant  Attorney  General,
          Fairbanks,   Laura   C.  Bottger,   Assistant
          Attorney  General, Anchorage,  and  David  W.
          M rquez,   Attorney  General,   Juneau,   for
          Appellees.

          Before:   Fabe,   Chief  Justice,   Matthews,
          Eastaugh, Bryner, and Carpeneti, Justices.

          FABE, Chief Justice.


I.   INTRODUCTION
          This  appeal raises a constitutional challenge  to  the
creation of the Workers Compensation Appeals Commission in  2005.
The  Alaska Public Interest Research Group (AKPIRG) contends that
the   establishment  of  the  Appeals  Commission  violates   the
separation of powers doctrine implicit in the Alaska Constitution
by  creating  a  court  in the executive  branch  and  improperly
removing  jurisdiction  from  the  superior  court.   The   State
responds  that the creation of the Appeals Commission was  simply
an  exercise  of the legislatures article III power to  create  a
quasi-judicial  agency.   The  superior  court  granted   summary
judgment to the State, deciding that the Appeals Commission is  a
quasi-judicial  agency.  We conclude that  establishment  of  the
Appeals  Commission  does not violate the  separation  of  powers
doctrine,  but  we narrowly construe the statutes provision  that
decisions  of  the  Appeals Commission have the  force  of  legal
precedent, determining that the decisions are binding only on the
Alaska  Workers  Compensation Board and  the  Appeals  Commission
itself.  We also conclude that we have the inherent authority  to
order a trial de novo when due process requires one.
II.  FACTS AND PROCEEDINGS
          The  Twenty-Fourth  Legislature  enacted  a  number  of
changes  to  the Alaska Workers Compensation Act in  chapter  10,
FSSLA  2005.  The governor sponsored the legislation in  response
to  a  perception that workers compensation insurance rates  were
too  high and were making it difficult for some businesses in the
state  to continue.1  Among the changes was the establishment  of
the   Workers  Compensation  Appeals  Commission.2   The  Appeals
Commission is comprised of five members.3  One member, the chair,
must  be  an  attorney experienced in Alaska workers compensation
law.4   The  other members of the Appeals Commission are  equally
divided  between  representatives of  employers  and  employees.5
Members of the Appeals Commission other than the chair must  have
served  for  at  least  eighteen months  on  the  Alaska  Workers
Compensation  Board.6  The members of the Appeals Commission  are
appointed  by  the governor and confirmed by a  majority  of  the
legislature.7  Those who want to serve on the Appeals  Commission
submit  their applications to the chief administrative law judge,
who  chooses  the  individuals whose names are submitted  to  the
governor  for selection.8  Members of the Appeals Commission  are
subject  to  conflict of interest provisions9  and  may  only  be
removed by the governor for good cause.10
          Under  the  new  statute, the Appeals Commission  hears
appeals  of decisions of the Alaska Workers Compensation Board;11
it  is  the  exclusive  and  final  authority  for  the  .  .   .
determination of all questions of law and fact12 arising under the
Alaska  Workers Compensation Act,13 except for an appeal to  this
court.14    Three-member  panels  of  the   five-member   Appeals
Commission hear and decide appeals.15  The statute also  provides
that  unless  reversed by this court, decisions  of  the  Appeals
Commission  have  the  force of legal precedent.16   The  statute
authorizes   the   Appeals  Commission   to   adopt   regulations
implementing  its  duties, including the  adoption  of  rules  of
procedure  and  evidence,  in  addition  to  its  work  reviewing
decisions of the Alaska Workers Compensation Board.17  It is also
able to award reasonable attorneys fees.18
          AKPIRG  filed  a  suit for declaratory  and  injunctive
relief  on September 30, 2005.  In its complaint it alleged  that
the  Workers  Compensation Appeals Commission  was  an  executive
          court.  It further alleged that creation of the Appeals
Commission  violated  article IV of the Alaska  Constitution  by:
(1)  improperly removing superior court jurisdiction and granting
jurisdiction  to the supreme court; (2) creating a court  outside
the  unified  judicial  system; (3) not following  constitutional
provisions  for  the  selection of  judges;  and  (4)  improperly
granting  power to the Appeals Commission to make rules governing
the  administration of the Appeals Commission.  AKPIRG asked  the
superior  court to declare the provisions of the statute creating
the  Appeals  Commission null and void, enjoin the implementation
of  those  sections  of  the  statute that  created  the  Appeals
Commission,  and  declare  that appeals in  workers  compensation
cases could be filed and heard in the superior court.
          About  two weeks after AKPIRG filed its complaint,  the
State  moved for summary judgment, asking the superior  court  to
decide as a matter of law that: (1) the Appeals Commission was  a
properly created quasi-judicial agency under article III, section
22  of  the  Alaska  Constitution, and  (2)  taking  intermediate
appellate  jurisdiction in workers compensation  cases  from  the
superior  court was a valid exercise of legislative  power  under
article IV, section 1 of the Alaska Constitution.  On October 21,
2005,  AKPIRG filed its own summary judgment motion,  seeking  an
order that sections 8, 40, and 41 of chapter 10, FSSLA 2005  were
unconstitutional.19
          After  hearing  oral argument on the cross-motions  for
summary  judgment, the superior court granted the States  motion.
It  decided  that  the  Appeals Commission was  a  quasi-judicial
agency  that the legislature properly created under article  III,
section 22 of the Alaska Constitution.  In reaching its decision,
the superior court considered the difference between judicial and
quasi-judicial functions and the extent to which appellate review
was  a uniquely judicial function.  It determined that there  was
no  constitutional provision for intermediate appellate review by
the  superior court, so that the legislature could properly limit
the superior courts appellate jurisdiction.
          AKPIRG appeals.

III. DISCUSSION
     A.   Standard of Review
          We review a grant of summary judgment de novo.20 We will
affirm  a  grant  of summary judgment when there are  no  genuine
issues  of material fact and the prevailing party is entitled  to
judgment  as  a matter of law.21  For questions of constitutional
law,  we  apply our independent judgment.22  In interpreting  the
constitution,  we adopt a reasonable and practical interpretation
in  accordance with common sense based upon the plain meaning and
purpose  of  the  provision  and the  intent  of  the  framers.23
Statutes  are  presumed to be constitutional, and the  burden  of
showing   that  they  are  unconstitutional  is  on   the   party
challenging the statute.24
     B.             The  Workers Compensation Appeals  Commission
                    Is a Quasi-Judicial Agency.
                    
          This case presents two interrelated issues: whether the
          Workers Compensation Appeals Commission is a properly created
quasi-judicial   agency  and  whether  the   Appeals   Commission
represents  executive branch encroachment on  the  power  of  the
judiciary,  in  violation of the separation of  powers  doctrine.
The  parties  agree  that  there are  no  factual  disputes.   We
conclude  that  the  legislature acted within its  constitutional
authority in creating the Appeals Commission and that, with  some
limiting  construction  of  the statute,  the  authority  of  the
Appeals Commission does not encroach on the judicial branch.
          We  have  recognized that the separation of powers  and
its complementary doctrine of checks and balances are part of the
constitutional  framework  of this state.25   The  separation  of
powers  doctrine is derived from the distribution of power  among
the three branches of government.26  The Alaska Constitution vests
legislative  power  in the legislature; executive  power  in  the
governor;  and judicial power in the supreme court, the  superior
court, and additional courts as established by the legislature.27
The  separation of powers doctrine limits the authority  of  each
branch to interfere in the powers that have been delegated to the
other  branches.28   The  purposes of the  separation  of  powers
doctrine are to preclude the exercise of arbitrary power  and  to
safeguard the independence of each branch of government.29
          In   determining  whether  creation  of   the   Appeals
Commission  violates  the separation of powers,  we  examine  the
nature  of the power that the legislature granted to the  Appeals
Commission.30   We  also examine which branch  of  government  is
assigned   this  power  in  the  constitution  and  whether   the
constitution  suggests that the power is  to  be  shared  by  two
branches.31  Finally, we must determine whether the limits of any
express  grant  have been exceeded or present an encroachment  on
another branch.32
          The parties here agree that the function of the Appeals
Commission  hearing appeals  is adjudication, which is  primarily
a  judicial  function.33  Although the Alaska Constitution  vests
judicial  power  in  the  courts, it  also  explicitly  envisions
legislatively   created  quasi-judicial   agencies   within   the
executive branch.34
          Article  III,  section  22 of the  Alaska  Constitution
provides: Regulatory, quasi-judicial, and temporary agencies  may
be  established by law . . . .  But the constitution contains  no
definition   of   quasi-judicial  agency.    Delegates   to   the
Constitutional Convention, in discussing whether to include quasi-
judicial  agencies  in the new Alaskan government,  looked  at  a
dictionary definition of quasi-judicial as designating an act  or
proceeding of or before an administrative tribunal or official of
the general nature of a judicial act or proceeding but not within
the  judicial  power  as defined under the  Constitution.35   The
delegates debated the advantages that quasi-judicial bodies might
offer,   such   as   specialization  and   expertise,   and   the
disadvantages, such as the potential for abuses of power.36   The
delegates saw two checks on the power of quasi-judicial agencies:
the  legislature,  which  could  hear  citizen  complaints  about
agencies,  and  the courts, which could rise up  and  destroy  an
intrusion on judicial powers.37
          AKPIRG  contends  that  the  creation  of  the  Appeals
Commission  improperly  takes judicial power  from  the  judicial
branch  and  delegates  that power to the executive.   The  State
counters  that  the Appeals Commission is simply  another  quasi-
judicial  agency, creation of which is within the  constitutional
power of the legislature.
          1.   Delegation of judicial function
          The  legislature  may  constitutionally  delegate  some
adjudicative  power  to  an executive  agency,  but  it  may  not
delegate judicial power.38  The attempt to distinguish between  a
judicial  function,  which  cannot be  delegated,  and  a  quasi-
judicial function, which can be, is not new.  In his treatise  on
state  administrative law, Professor Frank Cooper notes  that  in
delegation  cases,  courts  have  tried  to  distinguish   purely
legislative or judicial functions from quasi-legislative or quasi-
judicial  functions and concludes that no court has  successfully
distinguished  the two.39 Although there is not a clear  line  of
demarcation,  courts have looked at several factors in  analyzing
whether  a  particular delegation of power to  an  administrative
agency  is  constitutional.  Among the factors  are  the  limited
jurisdiction of administrative agencies, the lack of finality  of
agency  decisions, the availability of judicial review,  and  the
amount of discretion available to an agency.
               a.   Limited jurisdiction
          One  factor  that courts rely on to determine  that  an
agency  exercises only quasi-judicial authority  is  the  limited
jurisdiction of the administrative agency.40  One of  the  policy
justifications  for the existence of administrative  adjudication
is that as a result of their limited jurisdiction, administrative
agencies are able to develop expertise in a narrow area.41   Some
courts  have  decided  that  a grant  of  judicial  power  to  an
administrative agency is acceptable when the administrative  body
resolve[s] factual  issues underlying a purely statutory right.42
Administrative agencies do not have jurisdiction to decide issues
of  constitutional law.43  Delegation to an administrative agency
is upheld as long as the administrative tribunal stays within the
bounds of its authority.44
          The  Appeals  Commissions jurisdiction  is  limited  to
hearing  and  determination  of all questions  of  law  and  fact
arising under the Alaska Workers Compensation Act in matters that
have been appealed to the Appeals Commission.45  The scope of its
jurisdiction is not that different from the Boards jurisdiction,46
except  that  the  Appeals Commission performs  a  quasi-judicial
function  that  is  akin  to appellate review,  while  the  Board
performs a quasi-judicial function that resembles that of a trial
court.  We recognize that the Appeals Commission, like the Board,
may be required to apply equitable or common law principles in  a
specific  case,47 but both of these quasi-judicial  agencies  can
only  adjudicate  in the context of a workers compensation  case.
Neither the Appeals Commission nor the Board has jurisdiction  to
hear any action outside of a workers compensation claim.48
          Although  AKPIRGs  main argument is  that  the  Appeals
Commission  has usurped a judicial function and therefore  cannot
really be a quasi-judicial agency, it does not appear that AKPIRG
          argues  that  all  administrative appellate  review  is
unconstitutional.   AKPIRG  lists the Boards  authority  to  hear
appeals from decisions of the reemployment benefits administrator
(RBA) as one of the Boards functions.  In appeals from a decision
of  the  RBA,  the Board is limited by statute to  reviewing  the
action  for  abuse of discretion.49  AKPIRG does not  attack  the
Boards  appellate authority as an excessive delegation  and  does
not  explain why a delegation of appellate review to the  Appeals
Commission  would  be  suspect when a delegation  of  a  similar,
though narrower, function to the Board is permissible.
          The  superior court considered whether appellate review
is  a uniquely judicial function and decided that it was not.  In
Alaska, multi-level agency review is used in unemployment claims50
as well as contract claims against the state.51  Decisions of fair
hearing  officers in public assistance cases must be reviewed  by
the division director before they can be appealed to the court.52
The  procedures used by the Appeals Commission may be more formal
and  more  closely resemble the courts procedures, but that  does
not render them unconstitutional.
          AKPIRG  also urges us to declare the Appeals Commission
a  court  because  its function, to review Board  decisions,  was
formerly  performed  by the superior court.   The  fact  that  an
administrative body performs a function previously performed by a
court  does  not  automatically make it a court.   Several  years
after  Congress  amended  the Longshoremens  and  Harbor  Workers
Compensation  Act to provide for administrative appellate  review
by  the  Benefits Review Board and judicial review by the  United
States  Courts  of  Appeal, two members of  the  Benefits  Review
Board,  who  had been removed from their positions, claimed  that
the  Benefits Review Board was in fact an Article III  court,  in
part  because  its review function replaced a function  that  had
previously  been performed by the District Court.53  In  deciding
that the Benefits Review Board was not an Article III court,  the
D.C.  Circuit  observed,  Article  III  requires  only  that  the
ultimate judicial power be reserved in the Article III courts; it
does  not  require  that all adjudicative bodies  exercising  the
review  standards that Article III courts exercise be constituted
as  Article  III courts.54  Similarly, the fact that the  Appeals
Commission reviews Board decisions and uses standards  of  review
and  procedures that closely parallel those of the court does not
make  the  Appeals  Commission a court.  The Appeals  Commissions
limited jurisdiction supports the conclusion that it is a  quasi-
judicial agency rather than a court.
               b.   Enforcement of orders
          Another  factor that courts have looked at in assessing
the  constitutionality of an agencys power is whether  an  agency
can  enforce an order that it creates.55  As we recognized  in  a
previous separation of powers case, the essence of judicial power
is  the  final  authority  to render and  enforce  a  judgment.56
Neither  the Appeals Commission nor the Board has the ability  to
enforce   its  own  orders.   AKPIRG  contends  that  after   the
legislature  removed  the superior courts  jurisdiction  to  hear
workers compensation appeals, this court alone can enforce  Board
or  Appeals Commission orders.  We disagree.  The superior  court
          retains jurisdiction to compel compliance with Board subpoenas57
and  to  enter  judgments when a party to a workers  compensation
proceeding  defaults on payment of a compensation  order.58   The
superior  courts authority to enter a judgment when  an  employer
defaults on payments is independent of its power to hear appeals.59
In  addition, nothing deprives the superior court of jurisdiction
to  hear  declaratory  actions  related  to  the  Alaska  Workers
Compensation Act.60  Because the Appeals Commission cannot enforce
its  own  orders, it lacks one of the essential attributes  of  a
court.
               c.   Agency discretion
          Delegation of power to an administrative agency is more
likely to be found constitutional if the grant of power minimizes
agency discretion.61  For example, in workers compensation cases,
the  amount of benefits is set by statute so that the  Board  has
minimal  discretion in awarding benefits as compared  to  a  jury
awarding  tort damages.62  Courts also sometimes look at  whether
the  area of delegation is one that historically has been subject
to  administrative regulation.63  Workers compensation is an area
of law that has been subject to administrative adjudication for a
considerable  period of time.64  The Alaska Workers  Compensation
Board  was  created in 1959, the same year that Alaska  became  a
state.65  AKPIRG does not question the Boards power to perform  a
quasi-judicial  function.  The Appeals  Commission  has  no  more
discretion to award damages than the Board since its jurisdiction
is limited to review of Board decisions.  This lack of discretion
weighs  in favor of the Appeals Commission being a quasi-judicial
agency rather than a court.
               d.   Judicial review
          Courts have also looked at the availability of judicial
review  in  determining  whether  an  agency  has  been  properly
delegated quasi-judicial authority.66  We have found a  right  to
judicial  review of agency action in the absence of  an  explicit
statutory provision67 and a right to limited review even in cases
where the legislature has precluded judicial review.68  Decisions
of  the Appeals Commission are subject to judicial review by this
court, so judicial review is available.69
          AKPIRG   contends   that  the   legislature   may   not
constitutionally  provide for direct appeals from  administrative
agency decisions to this court because article IV, section  2  of
the Alaska Constitution provides that the supreme court has final
appellate  jurisdiction.  But we agree with the  States  argument
that  this court can have both initial and final jurisdiction  to
hear  administrative appeals, just as it has  initial  and  final
jurisdiction  to  hear civil appeals from the  superior  court.70
AKPIRG  points  to  no  authority  that  there  is  a  right   of
intermediate  appellate review in agency decisions or  otherwise,
and  we  find  none in the Alaska Constitution.   Superior  court
review of administrative agency decisions is a statutory,  not  a
constitutional,  right,  even though  the  separation  of  powers
doctrine and principles of due process require an opportunity for
judicial  review.  The court reviewing the administrative  action
does not need to be the superior court, however.
          Among  the  goals  of the legislature in  changing  the
Workers  Compensation Act were decreasing costs and speeding  the
processing of claims.  The Appeals Commission was created to help
achieve  these  goals:  it was intended  to  provide  consistent,
legally  precedential decisions in an expeditious manner.71   The
legislature  hoped  that  the Appeals  Commission  would  provide
necessary  expertise  and thereby improve  the  appeals  process.
Other  states have workers compensation systems similar  to  that
which  was created by chapter 10, FSSLA 2005.  At the request  of
the  superior  court, the State provided information  about  five
other  states  with  direct appeals to their  supreme  courts  in
workers  compensation  appeals.  A number of  other  states  have
workers  compensation statutes which have two-tier administrative
decisionmaking, with initial determinations reviewed  within  the
agency or department, followed by judicial review by an appellate
court.72
          We  are  not  aware  of  any successful  constitutional
challenge   to   a  similarly  structured  workers   compensation
appellate   procedure.   Constitutional  challenges  to   similar
statutes were rejected in New Hampshire73 and Kansas.74   Because
the  Appeals  Commission has limited jurisdiction and  discretion
and  because  its decisions are subject to judicial  review,  the
legislature validly delegated quasi-judicial power to the Appeals
Commission.
          AKPIRG  contends that because the legislature  did  not
explicitly call the Appeals Commission a quasi-judicial agency as
it  did  when  it  created  the Office  of  Tax  Appeals  in  the
Department of Administration, the Appeals Commission  is  not  in
fact a quasi-judicial agency.  A comparison to the Alaska Workers
          Compensation Board shows that AKPIRGs argument is flawed.  The
Alaska  Workers  Compensation Board was an  early  quasi-judicial
agency, created by the legislature in 1959.75  At the time of its
creation, it was not explicitly labeled a quasi-judicial  agency,
yet we have recognized that it is one.76  AKPIRG does not question
the Boards status as a quasi-judicial agency or the legitimacy of
its  power:   in  fact, AKPIRG uses the Board as a  model  quasi-
judicial agency with which to compare the Appeals Commission.
          AKPIRG  also argues that the Appeals Commission  cannot
be  considered  a  valid  quasi-judicial agency  because  of  its
limited  function.  It alleges that the only power  delegated  to
the  Appeals  Commission  is the authority  to  hear  appeals  in
workers  compensation cases.  While it is true that  the  Appeals
Commission  has  a  more limited function  than  the  Board,  its
limited  function  does  not disqualify it  as  a  quasi-judicial
agency.77  Delegates to the Constitutional Convention appeared to
be  more concerned that the scope of powers delegated to a quasi-
judicial  agency  would be too broad, rather than  too  narrow.78
Furthermore,  the  Appeals Commission, like other  quasi-judicial
agencies, is empowered to adopt regulations consistent  with  its
function.79  It can also hold hearings and receive evidence on  a
limited  number  of issues.80  The legislature acted  within  the
authority to create quasi-judicial agencies accorded to it by the
constitution when it established the Appeals Commission.
     C.     The   Organization  of  the  Appeals  Commission   Is
Permissible.
          AKPIRG  implies that the legislature could not  validly
create a quasi-judicial agency independent of the Board to review
Board decisions.  The constitution grants the legislature and the
executive  broad power to organize administrative  bodies.81   We
have  also  recognized  that the legislature  has  constitutional
power to allocate executive department functions and duties among
the different administrative bodies within state government.82  In
this   case,  even  though  the  legislature  made  the   Appeals
Commission independent of the Board, both of them are within  the
same  executive department, the Department of Labor and Workforce
Development.83
          The administrative structure adopted by the legislature
for  the  Appeals  Commission is not  unique  among  the  states.
Minnesotas   Workers  Compensation  Court  of   Appeals   is   an
independent agency within the executive branch and by statute  is
required to maintain its offices in a building separate from  the
Minnesota  Department  of  Labor  and  Industry.84   The  federal
government   has   established   independent   commissions    for
administrative   adjudication85  and  also   has   administrative
appellate  review  within  an executive department  by  different
sections of the department.86  While the Appeals Commission may be
the  first  Alaskan  administrative agency to  have  the  limited
function  and  structure  that it  does,  we  conclude  that  the
organization  that  the legislature chose does  not  violate  the
separation of powers doctrine.
     D.   Appeals  Commission  Decisions Have Precedential  Value
          Only for the Appeals Commission and the Board.
          
          The  State contends that the Appeals Commission is  not
          the first level of judicial review, but merely a second layer of
administrative adjudication; according to the State, the  Appeals
Commission simply renders the final agency decision for  purposes
of judicial review.  AKPIRG argues that the Appeals Commission is
not  needed  to  add  finality because the Boards  decisions  are
already  final.   It asserts that the result of creation  of  the
Appeals Commission is to give administrative adjudication legally
precedential effect.  AKPIRGs argument misconstrues  the  concept
of  final  agency  action.  Nothing requires  an  appeal  to  the
Appeals  Commission;  if  parties  are  satisfied  with  a  Board
decision,  that  decision is final as to the  parties  and  binds
them, just as a Board decision bound them under prior law.87  What
the  2005 amendment changed is the way in which an administrative
decision  in  a  workers  compensation  case  becomes  final  for
purposes of judicial review.
          Only   final  administrative  orders  are  subject   to
judicial  review.88  The legislature may require compliance  with
specific  procedures  for an order to be final  for  purposes  of
review.89  Here, the legislature decided that final agency action
for a workers compensation case now must be an Appeals Commission
decision, not a Board decision.90  However, if a party  does  not
want  to appeal the Board decision, it need not do so; the  Board
decision is then final.91
          AKPIRG argues that the legislature acted improperly  in
creating  the Appeals Commission, staffing it with a majority  of
non-lawyers,  yet giving the decisions of the Appeals  Commission
the  force  of  legal  precedent.92  It  also  asserts  that  the
acceptance  of  the States argument results in affording  legally
precedential  value to decisions of an executive agency  but  not
the  superior  court.   But  examination  of  administrative  law
principles  shows  that  the  powers explicitly  granted  to  the
Appeals Commission are similar to powers already exercised by non-
attorneys in quasi-judicial agencies, including the Board.
          The  Board  is  composed of eighteen members,  who  are
equally  divided between representatives of labor and industry.93
Nothing  requires  that Board members be  attorneys.   Until  the
creation   of   the  Appeals  Commission,  the  Board   was   the
administrative body responsible for interpretation of the  Alaska
Workers  Compensation  Act,  both through  its  quasi-legislative
function  of  promulgating  regulations  and  its  quasi-judicial
function  of adjudicating claims.94  Administrative agencies  can
set  policy through adjudication, as well as rulemaking.95  While
there  has  never been a statutory provision that Board decisions
have  precedential  effect, the Board has  looked  to  its  prior
decisions  in  deciding individual cases.96   As  a  result,  the
decisions  of  Board  panels  had some intra-agency  precedential
effect.  And while we have not had occasion to address this exact
issue, some courts have held that administrative agencies,  while
not   strictly   subject  to  the  doctrine  of  stare   decisis,
nonetheless  must act consistently with their prior adjudications
or explain why they do not.97  If administrative agencies did not
adhere  to  some  loose form of precedent,  their  actions  could
easily   appear   arbitrary.98   In  fact,   cases   disapproving
administrative action for failing to follow agency precedent have
          found the agency action arbitrary.99  In sum, the Board, which may
be  composed  of a majority of non-lawyers, already  uses  agency
adjudication as some form of precedent to establish policy.100
          Non-lawyers   in  administrative  agencies   can   also
interpret  statutes by promulgating regulations.101  In reviewing
administrative   action,  we  give  deference   to   an   agencys
interpretation   of   a  statute  when  the   question   involves
fundamental policy decisions or administrative expertise.102  In so
doing,  we  in effect give some power to non-lawyers to interpret
the  law.   There  is  nothing  new in  giving  non-lawyers  some
interpretive  authority in determining the meaning of  a  statute
through administrative agency action.
          Alaska Statute 23.30.008 potentially goes beyond  these
settled  legal  principles by providing  that  decisions  of  the
Appeals  Commission  have  the force of  legal  precedent  unless
reversed  by  this  court.103  This provision could  be  read  to
encroach on judicial functions if it meant that decisions of  the
Appeals  Commission could serve as precedent for courts or  other
administrative agencies.  Even though courts currently  defer  to
an   agencys   interpretation  of  a  statute  in  questions   of
fundamental  policy,  the  judiciary  exercises  its  independent
judgment  when there is a question of law that does  not  involve
agency expertise.104  Courts also retain the authority to set aside
an  agencys  interpretation of the law, even  if  it  involves  a
fundamental  policy  question, if the  agency  interpretation  is
unreasonable.105
          The  State  responds to AKPIRGs argument  by  asserting
that  Appeals  Commission decisions are binding  legal  precedent
only  in  the  sense that commission decisions bind  the  appeals
commission and the compensation board.  However, nothing  on  the
face  of  the  statute  limits  the  precedential  value  of  the
decisions  in  this  way.   The Appeals  Commission  provides  an
additional  layer  of  administrative  adjudication  in   workers
compensation claims.  It is constitutionally permissible for  the
legislature  to  direct  that the Board must  adhere  to  Appeals
Commission  decisions and that the Appeals Commission  must  give
precedential effect to its own decisions.106  But the legislature
cannot  constitutionally require the courts to give  precedential
value to Appeals Commission decisions.
          The judiciary alone among the branches of government is
charged  with interpreting the law.107  To give an administrative
agency decision precedential value in a way that binds the courts
or  even  other agencies would undermine the notion  of  judicial
review.   Judicial  review  of legal  questions  is  one  of  the
fundamental   principles   that   underpins   the   notion   that
administrative adjudication is constitutional.108  Any attempt to
undermine independent judicial review of agency action cannot  be
constitutional.   To better understand this statutory  provision,
we explore what the doctrine of precedent entails and the reasons
that  the  legislature may have included this  provision  in  the
statute.
          The  doctrine  of  precedent is a common  law  doctrine
under  which  courts  are  bound  by  prior  decisions  in  their
consideration  of new cases.109  Precedent is a  judge-made  rule
          designed to constrain judicial decisionmaking by requiring that
prior  decisions with similar relevant facts be followed  or,  if
they  are  not followed, that the reasons for departing from  the
prior rule be explained.110  Two types of stare decisis have been
identified: horizontal stare decisis and vertical stare decisis.111
Horizontal stare decisis binds the issuing court to its own prior
decisions.112  Vertical stare decisis requires that courts of lower
rank follow decisions of higher courts.113  Vertical stare decisis
has  a  stronger  effect, in that lower courts  generally  cannot
overrule  decisions of higher courts, whereas a court may,  given
adequate reasons to do so, overrule itself.114
          Precedent  goes  beyond the related principles  of  res
judicata  and collateral estoppel and serves a different purpose.
Res  judicata, or claim preclusion, and collateral  estoppel,  or
issue  preclusion, bind the parties and their privies to  factual
findings,  as  well  as legal conclusions,  that  have  been  the
subject  of  prior litigation.115  The goal of res  judicata  and
collateral  estoppel is finality: both doctrines aim  to  prevent
parties  from again and again attempting to reopen a matter  that
has been resolved by a court of competent jurisdiction.116  When a
decision  is  precedent,  that decision binds  other  parties  in
similar,  not necessarily identical, circumstances to  the  legal
conclusions  of  the precedential decision.117  Precedent  serves
several  purposes.118  One goal of precedent is to narrow  issues
that need to be litigated, thus making litigation less costly and
time  consuming.  As we have previously noted, no judicial system
could do societys work if it eyed each issue afresh in every case
that  raised  it.119  Adherence to precedent  also  ensures  that
litigants have an understanding of the rules that may be  applied
to  their  actions.120   Finally, and perhaps  most  importantly,
precedent maintain[s] public faith in the judiciary as  a  source
of impersonal and reasoned judgments.121
          We  have already determined that the principles of  res
judicata   and   collateral  estoppel  apply  in   administrative
proceedings.  We have held that principles of res judicata  apply
to Board proceedings to foreclose relitigation of the same issues
between the same parties.122  We have also held that administrative
agency  decisions  can  have preclusive  effect  on  later  court
proceedings, so that if a party participates in an administrative
adjudication,  the administrative adjudication may foreclose  the
possibility of a later lawsuit on the same factual issues.123  But
when  the  courts evaluate an agency interpretation of a  statute
using  the  reasonable basis test, we do not accept  the  agencys
interpretation  as binding and do not use the  same  analysis  to
overrule  an agencys interpretation of a statute that we  use  to
overrule a legal precedent that we have established.124
          The State argues that Appeals Commission decisions must
be given precedential weight in order to achieve the legislatures
goal  of  increasing  efficiency and  consistency  in  processing
workers compensation claims.  There is little legislative history
about  the  precedential nature of Appeals Commission  decisions.
The  director  of the Division of Workers Compensation  testified
that the Appeals Commission would increase the speed, efficiency,
and  predictability of appeals because superior court judges  are
          not experienced in workers compensation law and because [t]heir
decisions do not establish binding legal precedent.125
          Before  the  creation  of the Appeals  Commission,  the
Board  was a party to any workers compensation case filed in  the
superior court.126  The Board could elect not to participate in an
appeal,  but  its  election not to participate would  not  affect
whether  it was bound by a decision on appeal.127  The  potential
difficulty for the Board was that one superior court decision did
not, and does not, bind other superior courts.128  As a result, the
Board  could be left with conflicting legal guidance, which would
make it difficult to provide consistent and fair adjudication  of
workers  compensation claims.  Creation of the Appeals Commission
resolves this issue.
          Both   the  Appeals  Commission  and  the  Board   have
jurisdiction in workers compensation cases, but without direction
from  the  legislature,  the inter-agency precedential  value  of
Appeals  Commission  decisions  would  not  have  been  apparent.
Furthermore,  the  process  for administrative  review  of  Board
decisions differs in one significant way from past practice:  the
Board  is  not  automatically a party to  an  Appeals  Commission
proceeding.129  If the Board is not a party to an appeal  to  the
Appeals  Commission, the Board would not be bound by  an  Appeals
Commission  decision under principles of either res  judicata  or
collateral  estoppel, unless it chose to intervene in every  case
that  came before the Appeals Commission.130  The provision  that
decisions  of  the  Appeals Commission have  precedential  effect
clarifies  that its decisions are binding on the Board even  when
the  Board does not intervene in an appeal.  In other words,  the
statute gives vertical stare decisis effect to Appeals Commission
decisions.  The statute also makes plain that different panels of
the Appeals Commission must follow prior decisions of the Appeals
Commission;  it  gives  horizontal stare decisis  effect  to  the
decisions   as  well.   The  statutory  provision  that   Appeals
Commission  decisions have precedential effect, if  construed  as
applying  only to the Board and the Appeals Commission,  furthers
the goal of achieving consistency in workers compensation cases.
          The   statutory   provision  that  Appeals   Commission
decisions  have the force of legal precedent unless  reversed  by
this court could encroach on the power of the judiciary to be the
final  interpreter  of  the  law.   Because  statutes  should  be
construed to avoid the risk of unconstitutionality,131 we construe
the  provision that decisions of the Appeals Commission have  the
force  of  legal  precedent as meaning that they serve  as  legal
precedent  for the Board and the Appeals Commission  only.   This
construction  does  not detract from the legislations  goals  and
clarifies  the  relationships between the Board and  the  Appeals
Commission.   It  is also consistent with current  administrative
law principles.
     E.   This Court Can Order a Trial de Novo if Necessary.
          
          AKPIRG asserts that trial de novo is an important right
that  was removed when the legislature took jurisdiction to  hear
workers  compensation  appeals  from  the  superior  court.   The
Appeals Commission does not have the authority to provide a trial
          de novo, but it can remand to the Board matters that it
determines   were   improperly,   incompletely,   or    otherwise
insufficiently developed.132  Before the enactment of chapter 10,
FSSLA  2005, workers compensation claims were appealed under  the
Administrative  Procedure Act (APA), which permits  the  superior
court  to  conduct  a  trial  de  novo.133   Trial  de  novo   is
discretionary  in  the  APA as well as  the  Rules  of  Appellate
Procedure.134
          To  the extent that trial de novo is a statutory right,
the  legislature can amend the statute to remove that  procedural
right.135   To  the extent that trial de novo is necessary  as  a
constitutional  matter, however, the legislature  cannot  deprive
the courts of jurisdiction to hold a trial de novo.136  Although we
have  held  that there is no general  constitutional right  to  a
trial de novo,137 we have recognized that in some cases, trial de
novo  may  be  constitutionally required.  We previously  stated,
[W]here  a  statute establishes a right to a trial de novo,  that
right  must  be recognized under Appellate Rule 45.   We  believe
that  a  similar  right  to  trial  de  novo  is  created  if  an
administrative  adjudicative  procedure  does  not   afford   due
process.138   The  only circumstance when  a  trial  de  novo  is
constitutionally   required   is   when   administrative   agency
procedures are so lacking as to deny due process to litigants.139
If  the  process provided by agency regulations conforms  to  due
process,  but the agency has not adhered to the required  process
in  a  particular case, the remedy is not a trial de novo  but  a
remand to the agency.140
          Before  the  creation  of the Appeals  Commission,  the
superior  court  could first, in its role as an  appellate  court
reviewing  a  Board decision, determine if the  process  afforded
litigants  was  so  suspect as to be out of compliance  with  due
process.    If  it  made  that  determination  in  its  appellate
capacity,  it  could then hold a trial de novo  as  part  of  its
constitutional  role as the trial court of general  jurisdiction.
We  agree  with the State that we have the authority to  order  a
trial  de  novo  as part of our inherent powers as  an  appellate
court  in  accordance with the Rules of Appellate Procedure.   We
decided  in State v. Lundgren Pacific Construction Co.  that  the
superior  court  had  the authority to  order  a  trial  de  novo
pursuant  to  its  inherent authority.  We stated,  The  superior
court  has  sufficient authority to order a trial de  novo  under
Appellate Rule 45(j) which confers upon the superior court  power
to  make  such  orders as are necessary and  proper  to  aid  its
appellate jurisdiction. 141  Appellate Rule 520(c) provides  that
this court may require such further proceedings to be had as  may
be just under the circumstances.142
          As  the  only court with jurisdiction to review Appeals
Commission  decisions, we have the authority  to  decide  whether
workers compensation procedures in a case are so deficient as  to
deprive litigants of due process.143  If they are and litigants are
constitutionally entitled to a trial de novo, their cases can  be
assigned to the superior court as the constitutional trial  court
of general jurisdiction.
     F.   Establishment of the Appeals Commission Is  Substantive
     Law.
          
          AKPIRG  argues  that  because chapter  10,  FSSLA  2005
failed  to amend the appellate rules that provide for appeals  in
administrative  proceedings, the court  rules  providing  for  an
appeal  to  the superior court remain in effect.   It  bases  its
argument  on the constitutional provision that changes  to  court
rules  must be enacted by a two-thirds vote of each house of  the
legislature.144  It also argues that because article IV, section 1
of  the  Alaska  Constitution says that the jurisdiction  of  the
courts  shall  be  prescribed  by  law,  the  legislature  cannot
prohibit the exercise of appellate jurisdiction in administrative
cases.   Prescribe  is defined as to establish  rules,  laws,  or
directions.145  Establishing a rule that the superior court  does
not  have  intermediate appellate jurisdiction  to  hear  workers
compensation  cases prescribes the jurisdiction of  the  superior
court as much as granting the superior court jurisdiction to hear
them.   The  legislature could permissibly  remove  the  superior
courts appellate jurisdiction in workers compensation cases.
          We  have  previously stated that the  question  whether
article IV, section 15 of the Alaska Constitution applies to  the
passage  of legislation depends on whether the subject matter  of
the  statute at issue is substantive or procedural; only  changes
in  procedural  law  require  a  super-majority  for  passage.146
Substantive  law  creates, defines and  regulates  rights,  while
procedural  law prescribes the method of enforcing the rights.147
With  the  enactment of chapter 10, FSSLA 2005,  the  legislature
took  subject  matter  jurisdiction to hear workers  compensation
appeals  from the superior court.  We recently held that  subject
matter jurisdiction is the legal authority of a court to hear and
decide a particular kind of case148 and noted that the legislature
could  properly authorize the superior court and a quasi-judicial
agency  to  hear particular classes of cases.149  The removal  of
subject   matter   jurisdiction  to  hear  appeals   in   workers
compensation cases from the superior court is substantive because
it   is  directly  related  to  the  legislatures  constitutional
authority  to  prescribe the jurisdiction of the courts.150   The
legislation was properly enacted.
IV.  CONCLUSION
          The   legislature   acted  within  its   constitutional
authority  when  it  created  the  Workers  Compensation  Appeals
Commission.   The  Appeals Commission is a  properly  established
quasi-judicial   agency  within  the  meaning   of   the   Alaska
Constitution.  Its decisions are subject to judicial review,  and
it  has  jurisdiction  only in workers  compensation  cases.   If
procedures  before the Appeals Commission or the  Alaska  Workers
Compensation Board were to be so deficient as to deny due process
to  litigants,  this  court has the inherent authority  to  order
trials  de novo in the superior court.  Decisions of the  Appeals
Commission can constitutionally serve as precedent only  for  the
Appeals  Commission  itself and the Alaska  Workers  Compensation
Board.   With  the  limiting  construction  we  have  given,   we
determine  that  the legislation creating the Appeals  Commission
does not violate the separation of powers doctrine.  The judgment
          of the superior court is AFFIRMED.
_______________________________
     1    Hearing on Senate Bill (S.B.) 130 Before the S. Labor &
Commerce  Comm., March 8, 24th Leg. (Alaska 2005)  (Testimony  of
Department  of Labor and Workforce Development Commissioner  Greg
OClaray).

     2    AS 23.30.007.

     3    AS 23.30.007(b).

     4    AS 23.30.007(b)(1) & (c)(2)(B)(C).

     5    AS 23.30.007(b)(2) & (3).

     6    AS 23.30.007(c)(1)(D) & (2)(A).

     7    AS 23.30.007(b).

     8    AS 23.30.007(d).

     9    AS 23.30.007(l).

     10    AS 23.30.007(j).

     11     AS  23.30.127.  The  superior  court  no  longer  has
jurisdiction to hear workers compensation appeals.  AS 23.30.129.

     12    AS 23.30.008(a).

     13    AS 23.30.001.400.

     14    AS 23.30.008(a).

     15    AS 23.30.007(i).

     16    AS 23.30.008(a).

     17    AS 23.30.008(c).

     18    AS 23.30.008(d).

     19     Chapter  10,   8, FSSLA 2005 became AS 23.30.007.009,
which create the Workers Compensation Appeals Commission; chapter
10,   40,  FSSLA  2005  became the revised  AS  23.30.125,  which
provides  for  appeals  from  Board  decisions  to  the   Appeals
Commission;  chapter 10,  41, FSSLA 2005 became AS 23.30.127.129,
which  deal  with  Appeals  Commission proceedings  and  judicial
review of commission decisions.

     20     State,  Dept  of  Health & Soc.  Servs.   v.  Planned
Parenthood of Alaska, Inc., 28 P.3d 904, 908 (Alaska 2001).

     21    Rockstad v. Erikson, 113 P.3d 1215, 1219 (Alaska 2005).

     22    Planned Parenthood, 28 P.3d at 908.

     23    Alaska Legislative Council v. Knowles, 21 P.3d 367, 370
(Alaska  2001)  (internal  quotations omitted)  (citing  Cook  v.
Botelho, 921 P.2d 1126, 1128-29 (Alaska 1996)).

     24     State,  Dept of Revenue v. Andrade, 23  P.3d  58,  71
(Alaska 2001).

     25     Planned Parenthood, 28 P.3d at 913 (citing  State  v.
Dupere,  709 P.2d 493, 496 (Alaska 1985), modified, 721 P.2d  638
(1986)).

     26    Bradner v. Hammond, 553 P.2d 1, 5 (Alaska 1976).

     27    Id. at 6.

     28    See Abood v. League of Women Voters, 743 P.2d 333, 338
(Alaska 1987).

     29    Bradner, 553 P.2d at 6.

     30    Id.

     31    Id. at 6-7.

     32    Id. at 7-8.

     33     As  some  courts have discussed, however,  the  other
branches of government may at times perform adjudication  in  the
exercise  of their powers.  Mulhearn v. Fed. Shipbuilding  &  Dry
Dock  Co.,  66  A.2d 726, 730 (N.J. 1949); State ex rel  Attorney
Gen. v. Hawkins, 5 N.E. 228, 234 (Ohio 1886).

     34    Alaska Const. art. III,  22.

     35     3 Proceedings of the Alaska Constitutional Convention
(PACC) 2206 (January 14, 1956).

     36    Id. at 2204-09.

     37    Id. at 2205, 2209.

     38     See Crowell v. Benson, 285 U.S. 22, 49-50 (1932); cf.
Bradner,  553 P.2d at 5-7 (relying on federal cases to  interpret
separation of powers).

     39    1 Frank Cooper, State Administrative Law 50-51 (1965);
see  also  F. Scott Boyd, Floridas ALJs: Maintaining a  Different
Balance,  24  J.  Natl Assn Admin. L. Judges 175,  187-88  (2004)
(noting difficulty in distinguishing quasi-judicial from judicial
power,  especially  in  areas  like  workers  compensation  where
adjudication of claims was once performed by courts).

     40     See Crowell, 285 U.S. at 54; see also Dee Enters.  v.
Indus.  Claim Appeals Office of State of Colo., 89 P.3d 430,  434
(Colo.   App.   2003)   (noting  that  the  legislature   granted
administrative law judges and the Industrial Claim Appeals Office
limited  jurisdiction  to make decisions in workers  compensation
cases).

     41    Alan B. Morrison, Administrative Agencies Are Just Like
Legislatures  and Courts  Except When Theyre Not,  59  Admin.  L.
Rev.  79, 101 (2007) (identifying agency expertise as one  reason
that  Congress has assigned certain proceedings to administrative
rather than judicial adjudication).

     42     McKay v. N.H. Comp. Appeals Bd., 732 A.2d 1025,  1029
(N.H. 1999).

     43     Dougan v. Aurora Elec., Inc., 50 P.3d 789,  795  n.27
(Alaska 2002).

     44     See  Quam v. State, 391 N.W.2d 803, 809 (Minn.  1986)
(holding  that  Minnesota Workers Compensation Court  of  Appeals
violated  the separation of powers doctrine by deciding an  issue
outside the scope of its jurisdiction).

     45    AS 23.30.008(a).

     46     DeNuptiis v. Unocal Corp., 63 P.3d 272,  277  (Alaska
2003)  (noting that the Board has broad powers to administer  the
Alaska Workers Compensation Act, including authority to formulate
policy and interpret statutes).

     47    See Blanas v. Brower, 938 P.2d 1056, 1062 (Alaska 1997)
(holding  that  Board  has  authority  to  set  aside  settlement
agreements  based on fraud); Wausau Ins. Cos. v. Van  Biene,  847
P.2d  584,  588  (Alaska  1993) (holding  that  Board  can  apply
equitable  principles  to prevent an employer  from  asserting  a
statutory right).

     48    AS 23.30.005(h); AS 23.30.008(a); AS 23.30.110.

     49    AS 23.30.041(d).

     50    AS 23.20.340; AS 23.20.410.470.

     51     AS  36.30.620;  AS  36.30.625;  AS  36.30.630(b);  AS
36.30.675; AS 36.30.680.

     52    7 Alaska Administrative Code (AAC) 49.220.230 (2004).

     53    Kalaris v. Donovan, 697 F.2d 376, 386 (D.C. Cir. 1983).

     54    Id. at 387.

     55    Keyes v. Humana Hosp. Alaska, Inc., 750 P.2d 343, 356-
57  (Alaska  1988);  Dee Enters., 89 P.3d at 434; State  ex  rel.
Keasling v. Keasling, 442 N.W.2d 118, 121 (Iowa 1989).

     56    Keyes, 750 P.2d at 356 (citations omitted).

     57    AS 23.30.005(h).

     58    AS 23.30.170.

     59    AS 22.10.020(d); AS 23.30.170.

     60    AS 22.10.020(g).

     61    See State v. Fairbanks N. Star Borough, 736 P.2d 1140,
1143  (Alaska  1987)  (holding delegation of  sweeping  power  to
governor  with  no  guidance  unconstitutional  as  an  excessive
delegation  of power); Jersey Maid Milk Prods. Co. v.  Brock,  91
P.2d 577, 595-96 (Cal. 1939).

     62     AS  23.30.175.225 provide for the  rates  of  workers
compensation benefits in Alaska.  In contrast, the trier of  fact
has  broad discretion in awarding damages under Alaskas  wrongful
death  statute.   State v. Phillips, 470 P.2d  266,  271  (Alaska
1970); see also 22 Am. Jur. 2d Damages  125 (2003).

     63    See Boehl v. Sabre Jet Room, Inc., 349 P.2d 585, 588-89
(Alaska 1960) (noting history of broad administrative control  in
regulating alcoholic beverages in support of broad delegation  of
rule-making authority to administrative agency).

     64     See  Crowell  v. Benson, 285 U.S.  22,  51-52  (1932)
(upholding  constitutionality of agency adjudication  of  workers
compensation  claims  for  maritime workers);  Mulhearn  v.  Fed.
Shipbuilding & Dry Dock Co., 66 A.2d 726, 727 (N.J. 1949) (noting
that  workers compensation claims were initially heard by  judges
before   establishment   of  an  administrative   agency).    The
constitutionality  of  administrative  adjudication  in   workers
compensation has been used to justify administrative adjudication
in  other  areas.   See Plasti-line, Inc. v. Tenn.  Human  Rights
Commn, 746 S.W.2d 691, 693 (Tenn. 1988).

     65      Ch.  193,  SLA  1959.   Even  before  statehood,  an
administrative  body  heard  workers  compensation  claims.   The
Seventeenth Territorial Legislature created the Alaska Industrial
Board.   Ch. 9,  36, SLA 1946.  Among the Boards powers  was  the
adjudication  of disputed workers compensation  claims.   Ch.  9,
15, SLA 1946.

     66     See  Ky. Commn on Human Rights v. Fraser, 625  S.W.2d
852,  855 (Ky. 1981); Nev. Indus. Commn v. Reese, 560 P.2d  1352,
1355 n.6 (Nev. 1977) (noting that administrative adjudication  of
workers   compensation  claims  has  generally  been  upheld   as
constitutional,  provided that there is  the  customary  judicial
review).

     67    Alyeska Ski Corp. v. Holdsworth, 426 P.2d 1006, 1011-12
(Alaska  1967)  (holding that determinations of the  Director  of
Division  of Lands and the Commissioner of Natural Resources  are
subject to judicial review).

     68     K & L Distribs., Inc. v. Murkowski, 486 P.2d 351, 357
(Alaska 1971).

     69    AS 23.30.129(a).

     70    AS 22.05.010.

     71    2005 Senate Journal 465.

     72     AKPIRG  does not challenge the States assertion  that
thirty-four  states  use some form of a board  or  commission  or
specialized  appeal panel to address the first  level  of  appeal
from  an  initial  decision.   A number  of  states  provide  for
judicial review to an appellate court rather than a trial  court.
See,  e.g.,  Colo.  Rev. Stat. Ann.  8-43-301(2003);  Conn.  Gen.
Stat. Ann.  31-301, 31-301b (2003); Kan. Stat. Ann.  44-555c, 44-
556 (2000); Mich. Comp. Laws Ann.  418.859a, 418.861a (1999); Or.
Rev. Stat.  656.289.298 (2005).

     73     McKay v. N.H. Comp. Appeals Bd., 732 A.2d 1025  (N.H.
1999).

     74    Gleason v. Samaritan Home, 926 P.2d 1349 (Kan. 1996).

     75    Ch. 193, SLA 1959.

     76     Ch.  193,  2, 25, SLA 1959; Wausau Ins. Cos.  v.  Van
Biene,  847  P.2d 584, 587 (Alaska 1993) (citing Hood  v.  State,
Workmens Comp. Bd., 574 P.2d 811, 813 (Alaska 1978)).

     77     See  Kalaris, 697 F.2d at 389 (noting  that  Congress
could  place  limited function of Benefits  Review  Board  in  an
executive agency).

     78    3 PACC 2207 (January 14, 1956).

     79    AS 23.30.008(c).

     80    AS 23.30.128(c).

     81    Alaska Const. art. III,  22 provides:

          All  executive  and  administrative  offices,
          departments,  and  agencies  of   the   state
          government  and  their respective  functions,
          powers, and duties shall be allocated by  law
          among   and  within  not  more  than   twenty
          principal departments, so as to group them as
          far   as   practicable  according  to   major
          purposes.   Regulatory,  quasi-judicial,  and
          temporary agencies may be established by  law
          and  need not be allocated within a principal
          department.
          
          Alaska Const. art. III,  23 provides:

          The   governor  may  make  changes   in   the
          organization  of the executive branch  or  in
          the  assignment of functions among its  units
          which  he  considers necessary for  efficient
          administration.  Where these changes  require
          the force of law, they shall be set forth  in
          executive orders.  The legislature shall have
          sixty  days of a regular session, or  a  full
          session if of shorter duration, to disapprove
          these  executive orders.  Unless  disapproved
          by  resolution concurred in by a majority  of
          the  members  in joint session, these  orders
          become effective at a date thereafter  to  be
          designated by the governor.
          
     82     Capital Info. Group v. State, Office of the Governor,
923 P.2d 29, 40 (Alaska 1996).

     83    AS 23.30.002; AS 23.30.005; AS 23.30.007(a).

     84     Minn. Stat. Ann.  175A.01, 175A.04 (2006).  Michigans
Workers  Compensation Appellate Commission is also an  autonomous
entity,  but it is permitted to share offices with the Department
of Labor.  Mich. Comp. Laws Ann.  418.274 (1999).

     85    Congress established the Federal Mine Safety and Health
Review  Commission  to  hear challenges  to  enforcement  of  the
Federal  Mine  Safety and Health Amendments Act of  1977;  it  is
independent of the Department of Labor.  Thunder Basin  Coal  Co.
v. Reich, 510 U.S. 200, 202-04 (1994).

     86     In federal workers compensation cases, administrative
appeals  are heard by the Benefits Review Board, which is  within
the Office of the Deputy Secretary of the Department of Labor. 33
U.S.C.   921(b); 20 C.F.R.  801.103 (2006).  The Benefits  Review
Board    reviews   decisions   by   the   Employment    Standards
Administration  of the Department of Labor.  20  C.F.R.   801.103
(2006).   By  placing the Benefits Review Board  in  a  different
section  of  the  Department  of Labor  from  the  section  where
administrative  law  judges worked, the Secretary  of  Labor  was
attempting to insulate the Board from those who would be  subject
to  its  review.   Kalaris, 697 F.2d at 391.  This administrative
structure  was determined to be constitutional.  Id. at  397-401.
Another  example of two-tier administrative review in the federal
system  is  the  Board  of Indian Appeals in  the  Department  of
Interior, which hears appeals of certain decisions of the  Bureau
of  Indian  Affairs  as  part  of  its  administrative  appellate
jurisdiction.  43 C.F.R.  4.1(a)(2) (2006).

     87    AS 23.30.125(a).

     88     AS 23.30.129(a); AS 44.62.560(a).  The administrative
adjudication  procedures of the Administrative Procedure  Act  do
not apply to the Appeals Commission.  AS 23.30.128(d).

     89     2 Richard J. Pierce, Jr., Administrative Law Treatise
15.11 (4th ed. 2002).

     90    AS 23.30.125(b); AS 23.30.129.

     91    AS 23.30.125(a).

     92    AKPIRGs argument that the legislature evaded the intent
of  the  constitution in bypassing the judicial selection process
is   without  merit.   Because  we  determine  that  the  Appeals
Commission  is  a  quasi-judicial agency,  its  members  are  not
subject  to the judicial selection process set out in the  Alaska
Constitution.

     93    AS 23.30.005(a).

     94     DeNuptiis v. Unocal Corp., 63 P.3d 272,  277  (Alaska
2003).

     95     Amerada  Hess  Pipeline Corp. v. Alaska  Pub.  Utils.
Commn, 711 P.2d 1170, 1178 (Alaska 1986).

     96     See,  e.g.,  Stempniak v. Pioneer Alaskan  Fisheries,
Inc.,  AWCB  Decision  No. 95-0012 (Feb.  7,  1995)  (relying  on
Williams v. Cal Worthington Ford, AWCB Decision No. 93-0254 (Oct.
13,  1993)  to  determine whether claimant  changed  physicians);
Nickerson v. Alaska Airlines, AWCB Decision No. 06-0330 (Dec. 18,
2006)  (relying  on  past Board decisions  for  proposition  that
participation  in  a second independent medical evaluation  tolls
the statute of limitations).

     97    In re Hughes & Coleman, 60 S.W.3d 540, 543 (Ky. 2001);
Steiner Corp. v. Auditing Div. of Utah State Tax Commn, 979  P.2d
357, 361 (Utah 1999).

     98     2 Richard J. Pierce, Jr., Administrative Law Treatise
11.5 (4th ed. 2002).

     99     Wolchuck v. Bowen, 871 F.2d 869, 875 (9th Cir. 1989);
In  re  Charles A. Field Delivery Serv., Inc., 488  N.E.2d  1223,
1227  (N.Y. 1985); cf. United Utils., Inc. v. Alaska Pub.  Utils.
Commn,  935  P.2d  811,  815  (Alaska  1997)  (noting  that  APUC
considered applications in accordance with its prior decisions).

     100     See  Bloom v. Tekton, Inc., 5 P.3d 235, 238  (Alaska
2000) (discussing genesis of agency policy about substitution  of
physicians).

     101    OCallaghan v. Rue, 996 P.2d 88, 94-95 (Alaska 2000).

     102     Alyeska Pipeline Serv. Co. v. DeShong, 77 P.3d 1227,
1231 (Alaska 2003).

     103    AS 23.30.008(a) provides:

          The  commission  shall be the  exclusive  and
          final   authority   for   the   hearing   and
          determination  of all questions  of  law  and
          fact  arising  under this  chapter  in  those
          matters  that  have  been  appealed  to   the
          commission,  except  for  an  appeal  to  the
          Alaska  Supreme  Court.  The commission  does
          not  have jurisdiction in any case that  does
          not  arise  under  this  chapter  or  in  any
          criminal  case.  On any matter taken  to  the
          commission, the decision of the commission is
          final and conclusive, unless appealed to  the
          Alaska Supreme Court, and shall stand in lieu
          of  the  order  of the board from  which  the
          appeal  was  taken.  Unless reversed  by  the
          Alaska   Supreme  Court,  decisions  of   the
          commission have the force of legal precedent.
          
     104     Rydwell v. Anchorage Sch. Dist., 864 P.2d  526,  528
(Alaska 1993).

     105    DeNuptiis, 63 P.3d at 277.

     106     See  Capital  Info. Group v. State,  Office  of  the
Governor, 923 P.2d 29, 40 (Alaska 1996) (recognizing legislatures
constitutional  power to allocate executive department  functions
and duties).

     107    Marbury v. Madison, 5 U.S. (1 Cranch) 137, 177 (1803)
(It  is  emphatically  the  province and  duty  of  the  judicial
department to say what the law is.).

     108    Crowell, 285 U.S. at 49-50.

     109    Joseph v. State, 26 P.3d 459, 468 (Alaska 2001) (citing
State v. Coon, 974 P.2d 386, 394 (Alaska 1999)).

     110    20 Am. Jur. 2nd Courts  129 (2005).  Some commentators
distinguish  between stare decisis and precedent,  viewing  stare
decisis  as  the strict adherence to the doctrine  of  precedent.
Polly  J. Price, Precedent and Judicial Power After the Founding,
42   B.C.  L.  Rev.  81,  105  (2000).   Others  use  the   terms
interchangeably.   Michael Sinclair, Precedent,  Super-Precedent,
14 Geo. Mason L. Rev. 363, 363 n.3 (2007).  We will use the terms
interchangeably because the distinction is not critical  for  our
discussion.

     111     State v. Menzies, 889 P.2d 393, 399 n.3 (Utah 1994);
Michael Sinclair, What is the R in IRAC?, 46 N.Y.L. Sch. L.  Rev.
457, 486 (2002-2003).

     112    Menzies, 889 P.2d at 399 n.3.

     113    Sanford v. Clear Channel Broad., Inc., 719 N.W.2d 312,
319 (Neb. App. 2006).

     114     See Thomas v. Anchorage Equal Rights Commn, 102 P.3d
937,  943  (Alaska  2004)  (discussing circumstances  when  prior
decisions will be overruled).

     115     Smith  v. CSK Auto, Inc., 132 P.3d 818, 820  (Alaska
2006);  Wilson  v. Municipality of Anchorage, 977 P.2d  713,  726
(Alaska 1999).

     116    State, Child Support Enforcement Div. v. Bromley, 987
P.2d  183,  192 (Alaska 1999) (internal quotations and  citations
omitted).

     117    20 Am. Jur. 2nd Courts 130 (2005).

     118    Holm v. United States, 524 U.S. 236, 251 (1998).

     119    Pratt & Whitney Can., Inc. v. Sheehan, 852 P.2d 1173,
1175 (Alaska 1993) (quoting Planned Parenthood v. Casey, 505 U.S.
833, 854 (1992)).

     120    Corby v. McCarthy, 840 A.2d 188, 207 (Md. App. 2003);
see also In re G.K., 497 P.2d 914, 917 n.14 (Alaska 1972) (noting
that the force of stare decisis is less when there has not been a
change in position in reliance on challenged decision).

     121    Sheehan, 852 P.2d at 1175-76 n.4 (quoting Moragne  v.
States Marine Lines, Inc., 398 U.S. 375, 403 (1970)).

     122     Robertson  v. Am. Mech., Inc., 54 P.3d  777,  779-80
(Alaska  2002)  (citing McKean v. Municipality of Anchorage,  783
P.2d 1169, 1171 (Alaska 1989)).

     123    Matanuska Elec. Assn v. Chugach Elec. Assn, Inc., 152
P.3d  460, 468 (Alaska 2007); see Jeffries v. Glacier State  Tel.
Co., 604 P.2d 4, 8-9 (Alaska 1979).

     124      Compare  DeNuptiis,  63  P.3d  at  277-78   (agency
interpretation not reasonable), with State v. Coon, 974 P.2d 386,
394  (Alaska  1999) (overruling Frye standard  for  admission  of
scientific evidence).

     125     Hearing on S.B. 130 Before the S. Labor  &  Commerce
Comm.,  March  10,  24th Leg. (Alaska 2005)  (Testimony  of  Paul
Lisankie).

     126    AS 44.62.560(a); Alaska R. App. P. 602(h); Crawford &
Co. v. Baker-Withrow, 81 P.3d 982, 985-86 (Alaska 2003).

     127    Alaska R. App. P. 602(h).

     128    Counsel for AKPIRG acknowledged at oral argument that
conflicting   superior  court  decisions   were   a   theoretical
possibility,  although he denied that the  Board  had  ever  been
faced with such a conflict.

     129    AS 23.30.127(a) permits the director of the Division of
Workers   Compensation  to  intervene  in  an  appeal.    Appeals
Commission  regulations set out the process for the  director  to
intervene. 8 AAC 57.030 (2007).

     130     Res  judicata and collateral estoppel only bind  the
parties  to the prior litigation and their privies.  Tolstrup  v.
Miller,  726  P.2d 1304, 1307 (Alaska 1986); Holmberg  v.  State,
Div. of Risk Mgmt., 796 P.2d 823, 829 (Alaska 1990) (holding that
collateral  estoppel  did not apply due to the  lack  of  privity
between the State and the Public Employees Retirement System).

     131    State v. Native Vill. of Nunapitchuk, 156 P.3d 389, 405
(Alaska 2007).

     132    AS 23.30.128(d).

     133     AS  44.62.330(a)(13); AS 44.62.570(d).   Before  the
creation   of   the  Appeals  Commission,  the   Alaska   Workers
Compensation  Act  had no express provision related  to  judicial
review of Board decisions.

     134    AS 44.62.570(d); Alaska R. App. P. 609(b).

     135    Manthey v. Collier, 367 P.2d 884, 887 (Alaska 1962).

     136    See K & L Distribs., Inc. v. Murkowski, 486 P.2d 351,
354-55 (Alaska 1971).

     137    Keiner v. City of Anchorage, 378 P.2d 406, 409 (Alaska
1963).

     138    State v. Lundgren Pac. Constr. Co., 603 P.2d 889, 895
(Alaska  1979).  Appellate Rule 45 at that time governed  appeals
to  the superior court from administrative agencies.  Id. at  890
n.3.

     139    Id. at 896.

     140    Id.

     141    Id. at 894 n.9.

     142    Alaska R. App. P. 520(c).

     143    Nothing in the amendments to the Workers Compensation
Act   divested  the  superior  court  of  jurisdiction  to   hear
declaratory judgment cases related to constitutional deficiencies
in workers compensation procedures or regulations.

     144    Alaska Const. art. IV,  15.

     145    Websters II New College Dictionary 894 (3rd ed. 2005).

     146    Channel Flying, Inc. v. Bernhardt, 451 P.2d 570, 575-76
(Alaska 1969).

     147     Ware v. City of Anchorage, 439 P.2d 793, 794 (Alaska
1968).

     148    Nw. Med. Imaging, Inc. v. State, Dept of Revenue, 151
P.3d  434,  438 (Alaska 2006) (internal quotations and  citations
omitted).

     149    Id.

     150     See  Native Vill. of Nunapitchuk, 156  P.3d  at  404
(stating that a doctrine of substantive law is related to matters
of public policy within the sphere of elected representatives).

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