2013-01-18                     Senate Journal                      Page 0056
SB 25                                                                                                                         
SENATE BILL NO. 25 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to electronic filing of certain                                                                      
          information with the Department of Labor and                                                                          
          Workforce Development; relating to surcharges, rate                                                                   
          increase reduction, prohibition on the relief of certain                                                              
          charges, the unemployment trust fund account, and                                                                     
          the offset of certain unemployment compensation                                                                       
          debt under the Alaska Employment Security Act;                                                                        
          relating to the definition of 'covered unemployment                                                                   
          compensation debt' in the Alaska Employment                                                                           
          Security Act; and providing for an effective date."                                                                   
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Labor and Workforce                                                                           
  Development                                                                                                                   
 Fiscal Note No. 2, zero, Department of Labor and Workforce                                                                     
  Development                                                                                                                   
                                                                                                                                
Governor's transmittal letter dated January 17:                                                                                 
                                                                                                                                
Dear President Huggins,                                                                                                         
                                                                                                                                
To keep our state strong, we are working for small business growth.                                                             
One way to grow Alaskan opportunity is to assure that Alaskans and                                                              
business owners in our state do not have to pay more to State                                                                   
government in unemployment insurance taxes than necessary. I am                                                                 
submitting legislation to accomplish that goal. Under the authority of                                                          
Article III, Section 18 of the Alaska Constitution, I am transmitting a                                                         

2013-01-18                     Senate Journal                      Page 0057
bill relating to the unemployment trust fund account that will meet                                                             
federal compliance requirements, ensure that the unemployment                                                                   
insurance (UI) fund remains solvent, and minimize the burden for                                                                
employers and employees.                                                                                                        
                                                                                                                                
Alaska law currently provides for automatic increases in                                                                        
unemployment insurance contributions from Alaskan workers and                                                                   
business owners, even when Alaska's unemployment insurance fund is                                                              
solvent without the increase. This legislation prevents overtaxing for                                                          
UI contributions while safeguarding the solvency of the fund. It gives                                                          
the Commissioner of the Department of Labor and Workforce                                                                       
Development (DOLWD) the authority to eliminate or reduce increases                                                              
in unemployment insurance tax rates when appropriate, based on                                                                  
standards to ensure the actuarial soundness of the unemployment trust                                                           
fund.                                                                                                                           
                                                                                                                                
Additionally, the bill allows for greater efficiencies by giving                                                                
DOLWD the authority to permit electronic filing. It also provides that                                                          
the department may offset covered unemployment compensation debt                                                                
against a claimant's federal income tax refund and clarifies                                                                    
participation in the federal treasury offset program.                                                                           
                                                                                                                                
This simple reform will allow Alaska's small and mid-sized businesses                                                           
to grow and create more jobs for the prosperity of all Alaskans.                                                                
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor