Legislature(2009 - 2010)

03/24/2010 02:20 PM House JUD


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                  SB 265 - 2010 REVISOR'S BILL                                                                              
                                                                                                                                
3:07:26 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  final order of business would be                                                               
CS  FOR  SENATE BILL  NO.  265(JUD),  "An Act  making  corrective                                                               
amendments to the  Alaska Statutes as recommended  by the revisor                                                               
of statutes; and providing for an effective date."                                                                              
                                                                                                                                
3:07:50 PM                                                                                                                    
                                                                                                                                
KATHRYN  KURTZ,  Assistant  Revisor, Legislative  Legal  Counsel,                                                               
Legislative  Legal  and  Research Services,  Legislative  Affairs                                                               
Agency,  explained that  the purpose  of  SB 265  is to  "correct                                                               
deficiencies, errors, and obsolete  provisions."  She pointed out                                                               
that this  is done annually.   She explained  that SB 265  had 31                                                               
Sections and  10 of  these dealt  with short  titles.   She added                                                               
that the bill  makes conforming changes, and in six  cases it was                                                               
"curing anguished  English."   She clarified  that the  bill does                                                               
not make substantive changes to the law.                                                                                        
                                                                                                                                
MS.  KURTZ explained  that the  proposed  amendment, labeled  26-                                                               
LS1220\P.1,   Kurtz,  3/16/10   would  return   a  reference   to                                                               
"newsboys'", which had been changed  the prior year in an attempt                                                               
to  make  it  gender  neutral,  to its  original  wording.    She                                                               
explained that the change had resulted in a tax consequence.                                                                    
                                                                                                                                
3:09:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt [Amendment  1], labeled                                                               
26-LS1220\P.1, Kurtz, 3/16/10, which read:                                                                                      
                                                                                                                                
     Page 9, following line 13:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 15. AS 23.20.526(a) is amended to read:                                                                     
          (a)  In this chapter, unless the context                                                                              
     otherwise requires, "employment" does not include                                                                          
               (1)  domestic service in a private home,                                                                         
     except as provided in AS 23.20.525(a)(13);                                                                                 
               (2)   newsboys'  services [SERVICE  PERFORMED                                                                
     BY AN INDIVIDUAL  UNDER 18 YEARS OF AGE]  in selling or                                                                    
     distributing newspapers on the  street or from house to                                                                    
     house;                                                                                                                     
               (3)    service  not  in  the  course  of  the                                                                    
     employing  unit's  trade  or business  performed  in  a                                                                    
     calendar  quarter by  an  individual,  unless the  cash                                                                    
     remuneration paid  for the service  is $50 or  more and                                                                    
     the  service  is  performed by  an  individual  who  is                                                                    
     regularly  employed by  the employing  unit to  perform                                                                    
     the  service; an  individual is  here considered  to be                                                                    
     regularly  employed  to  perform  service  not  in  the                                                                    
     course of an employing  unit's trade or business during                                                                    
     a calendar quarter only if  the individual performs the                                                                    
     service for some portion of the  day on each of 24 days                                                                    
     during  the quarter  or during  the preceding  calendar                                                                    
     quarter;                                                                                                                   
               (4)   service performed  by an  individual in                                                                    
     the employ of the individual's                                                                                             
               (A)  son, daughter, or spouse;                                                                                   
               (B)     parent  or  legal  guardian   if  the                                                                    
     individual was  under the age  of 21 years and  a full-                                                                    
     time student  during eight  of the  last 12  months and                                                                    
     intends to  resume full-time student status  within the                                                                    
     next four months; and                                                                                                      
               (C)    mother or  father  if  the service  is                                                                    
     performed by a child under the age of 18;                                                                                  
               (5)      service   with  respect   to   which                                                                    
     unemployment    insurance   is    payable   under    an                                                                    
     unemployment  insurance program  established by  an Act                                                                    
     of Congress;                                                                                                               
               (6)   service  performed in  the employ  of a                                                                    
     foreign government  including service as a  consular or                                                                    
     other   officer   or   employee  or   a   nondiplomatic                                                                    
     representative;                                                                                                            
               (7)   service performed  in the employ  of an                                                                    
     instrumentality  wholly owned  by a  foreign government                                                                    
     if                                                                                                                         
               (A)   the service  is of a  character similar                                                                    
     to that performed in foreign  countries by employees of                                                                    
     the United States  government or its instrumentalities;                                                                    
     and                                                                                                                        
               (B)   the  department finds  that the  United                                                                    
     States Secretary  of State has certified  to the United                                                                    
     States  Secretary  of  the Treasury  that  the  foreign                                                                    
     government,  with  respect   to  whose  instrumentality                                                                    
     exemption  is claimed,  grants an  equivalent exemption                                                                    
     with  respect  to  similar  service  performed  in  the                                                                    
     foreign  country  by  employees of  the  United  States                                                                    
     government and its instrumentalities;                                                                                      
               (8)  service performed by an insurance                                                                           
     agent,  insurance solicitor,  real estate  broker, real                                                                    
     estate  salesperson, or  securities salesperson  to the                                                                    
     extent the person is  compensated by commission, unless                                                                    
     the  service  is  required  to  be  covered  under  the                                                                    
     Federal Unemployment Tax Act, as amended;                                                                                  
               (9)  notwithstanding AS 23.20.525(a)(9),                                                                         
     service performed by  an officer or member  of the crew                                                                    
     of  an American  vessel on  or in  connection with  the                                                                    
     vessel,  if  the  operating   office,  from  which  the                                                                    
     operations of the vessel  operating on navigable waters                                                                    
     inside  or inside  and outside  the  United States  are                                                                    
     ordinarily    and   regularly    supervised,   managed,                                                                    
     directed, and controlled, is outside this state;                                                                           
               (10)  service performed on or in connection                                                                      
     with a vessel  not an American vessel  by an individual                                                                    
     if  the   individual  performed   service  on   and  in                                                                    
     connection  with the  vessel  when  outside the  United                                                                    
     States;                                                                                                                    
               (11)  service performed in the employ of the                                                                     
     United States  government or an instrumentality  of the                                                                    
     United  States exempt  under  the  Constitution of  the                                                                    
     United States  from the  contributions imposed  by this                                                                    
     chapter, except  that to the  extent that  the Congress                                                                    
     of  the  United States  permits  states  to require  an                                                                    
     instrumentality of  the United States to  make payments                                                                    
     into  an unemployment  fund  under  a state  employment                                                                    
     security  law, all  of the  provisions of  this chapter                                                                    
     apply   to  the   instrumentalities,  and   to  service                                                                    
     performed  for   the  instrumentalities  in   the  same                                                                    
     manner, to  the same extent,  and on the same  terms as                                                                    
     to all  other employers, employing  units, individuals,                                                                    
     and service;  however, if this  state is  not certified                                                                    
     for any  year by the  United States Secretary  of Labor                                                                    
     under 26 U.S.C. 3304(c)  (Federal Unemployment Tax Act,                                                                    
     Internal Revenue  Code), the  payments required  of the                                                                    
     instrumentalities  with respect  to the  year shall  be                                                                    
     refunded by  the department from  the fund in  the same                                                                    
     manner and  within the  same period  as is  provided in                                                                    
     AS 23.20.225 with respect  to contributions erroneously                                                                    
     collected;                                                                                                                 
               (12)  service performed in the employ of                                                                         
     another  state,  or  political subdivision  of  another                                                                    
     state,  or  an  instrumentality  of  another  state  or                                                                    
     political subdivision  that is wholly owned  by another                                                                    
     state  or  its  political  subdivision,  or  a  service                                                                    
     performed  in  the  employ  of  an  instrumentality  of                                                                    
     another  state or  its  political  subdivisions to  the                                                                    
     extent  that the  instrumentality is,  with respect  to                                                                    
     the  service,  exempt  under the  Constitution  of  the                                                                    
     United States  from the tax  imposed by 26  U.S.C. 3301                                                                    
     (Federal Unemployment Tax Act, Internal Revenue Code);                                                                     
               (13)   service performed in the  employ of an                                                                    
     international organization;                                                                                                
               (14)     service   covered  by   an  election                                                                    
     approved by the agency  charged with the administration                                                                    
     of any other state  or federal employment security law,                                                                    
     in    accordance    with     an    arrangement    under                                                                    
     AS 23.20.090(a)  during  the  effective period  of  the                                                                    
     election;                                                                                                                  
               (15)   service performed by an  individual in                                                                    
     agricultural    labor,    except   as    provided    in                                                                    
     AS 23.20.525(a)(14);  the   term  "agricultural  labor"                                                                    
     means remunerated service                                                                                                  
               (A)  on  a farm, in the employ  of any person                                                                    
     in  connection   with  cultivating  the  soil,   or  in                                                                    
     connection with raising  or harvesting any agricultural                                                                    
     or  horticultural  commodity,  including  the  raising,                                                                    
     shearing,   feeding,   caring    for,   training,   and                                                                    
     management  of  livestock,   bees,  poultry,  and  fur-                                                                    
     bearing animals and wildlife;                                                                                              
               (B)  in the employ  of the owner or tenant or                                                                    
     other  operator  of  a farm,  in  connection  with  the                                                                    
     operation,  management,  conservation, improvement,  or                                                                    
     maintenance of  the farm and  its tools  and equipment,                                                                    
     or in  salvaging timber or  clearing land of  brush and                                                                    
     other debris left by a  hurricane, if the major part of                                                                    
     the service is performed on a farm;                                                                                        
               (C)   in  connection with  the production  or                                                                    
     harvesting of any commodity  defined as an agricultural                                                                    
     commodity in 12 U.S.C.  1141j (Sec. 15(g), Agricultural                                                                    
     Marketing Act),  as amended, or in  connection with the                                                                    
     operation   or   maintenance    of   ditches,   canals,                                                                    
     reservoirs,  or waterways,  not owned  or operated  for                                                                    
     profit,  used  exclusively  for supplying  and  storing                                                                    
     water for farming purposes;                                                                                                
               (D)  in the employ  of the operator of a farm                                                                    
     in  handling,  planting,  drying,  packing,  packaging,                                                                    
     processing, freezing,  grading, storing,  or delivering                                                                    
     to  storage   or  to  market   or  to  a   carrier  for                                                                    
     transportation to market,  in its unmanufactured state,                                                                    
     any agricultural  or horticultural commodity;  but only                                                                    
     if  the operator  produced more  than  one-half of  the                                                                    
     commodity  with   respect  to  which  the   service  is                                                                    
     performed except as stated in (b) of this section;                                                                         
               (E)   in the employ  of a group  of operators                                                                    
     of farms,  or a  cooperative organization of  which the                                                                    
     operators are  members, in  the performance  of service                                                                    
     described in  (D) of  this paragraph,  but only  if the                                                                    
     operators produced more than  one-half of the commodity                                                                    
     with respect to which the service is performed;                                                                            
               (F)   on a  farm operated  for profit  if the                                                                    
     service is  not in the  course of the  employer's trade                                                                    
     or business;                                                                                                               
               (16)   service performed  as a  student nurse                                                                    
     in  the employ  of  a hospital  or  a nurses'  training                                                                    
     school  by  an  individual   who  is  enrolled  and  is                                                                    
     regularly  attending  classes  in  a  nurses'  training                                                                    
     school  chartered or  approved in  accordance with  the                                                                    
     laws of this state, and  service performed as an intern                                                                    
     in the  employ of a  hospital by an individual  who has                                                                    
     completed  a  four-year  course  in  a  medical  school                                                                    
     chartered or  approved in accordance  with the  laws of                                                                    
     this  state,  unless  the service  is  required  to  be                                                                    
     covered under the Federal Unemployment Tax Act;                                                                            
               (17)   service performed by an  individual on                                                                    
     a  boat engaged  in  catching fish  or  other forms  of                                                                    
     aquatic  animal  life  under an  arrangement  with  the                                                                    
     owner or operator of that boat under which                                                                                 
               (A)   that  individual does  not receive  any                                                                    
     cash  remuneration except  as provided  in (B)  of this                                                                    
     paragraph;                                                                                                                 
               (B)  that individual  receives a share of the                                                                    
     boat's,  or  the  boats'  in  the  case  of  a  fishing                                                                    
     operation involving  more than one boat,  catch of fish                                                                    
     or other  forms of  aquatic animal life  or a  share of                                                                    
     the proceeds from the sale of that catch; and                                                                              
               (C)   the amount  of that  individual's share                                                                    
     depends on the  amount of the boat's, or  the boats' in                                                                    
     the  case of  a fishing  operation involving  more than                                                                    
     one  boat, catch  of  fish or  other  forms of  aquatic                                                                    
     animal life;  but only  if the  operating crew  of that                                                                    
     boat, or  each boat from which  the individual receives                                                                    
     a share  in the case  of a fishing  operation involving                                                                    
     more than one  boat, is normally made up  of fewer than                                                                    
     10 individuals;                                                                                                            
               (18)   service performed as a  prospective or                                                                    
     impaneled juror in a court;                                                                                                
               (19)  service performed  for a corporation by                                                                    
     an employee of the corporation if                                                                                          
               (A)   the  corporation is  incorporated under                                                                    
     AS 10.06;                                                                                                                  
               (B)   the  corporation  is  not a  government                                                                    
     corporation; and                                                                                                           
               (C)  the employee  is an executive officer of                                                                    
     the corporation;                                                                                                           
               (20)  service performed  by an individual who                                                                    
     drives  a   taxicab  whose  compensation   and  written                                                                    
     contractual   arrangements   are    as   described   in                                                                    
     AS 23.10.055(a)(13);                                                                                                       
               (21)  service of an individual who                                                                               
               (A)   directly sells or solicits  the sale of                                                                    
     consumer products, for  resale or otherwise, personally                                                                    
     to  a prospective  consumer in  the  home or  otherwise                                                                    
     than  in a  permanent retail  establishment; a  sale or                                                                    
     solicitation     by      telephone,     mail,     other                                                                    
     telecommunications method, or  other nonpersonal method                                                                    
     does not satisfy the requirement of this subparagraph;                                                                     
               (B)  is compensated solely by                                                                                    
               (i)      commissions   on  sales   or   other                                                                    
     remuneration  directly   related  to  sales   or  sales                                                                    
     performance; or                                                                                                            
               (ii)  a profit  represented by the difference                                                                    
     between  the  wholesale  cost of  the  product  to  the                                                                    
     seller and the final sale price to the consumer; and                                                                       
               (C)   performs under a written  contract with                                                                    
     the  person  for whom  the  service  is performed  that                                                                    
     provides,  notwithstanding  AS 23.20.395(a),  that  the                                                                    
     individual  is not  an employee  for  purposes of  this                                                                    
     chapter or for federal or state tax purposes;                                                                              
               (22)      temporary   services   related   to                                                                    
     emergency  oil spill  training and  response activities                                                                    
     by an individual described in  (17) of this subsection;                                                                    
     in this  paragraph, "temporary" means a  period of less                                                                    
     than seven continuous days."                                                                                               
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 15, lines 1 - 2:                                                                                                      
          Delete "sec. 25"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 15, line 16:                                                                                                          
     Insert a new bill section to read:                                                                                         
         "* Sec. 30. The uncodified law of the State of                                                                       
     Alaska is amended by adding a new section to read:                                                                         
          RETROACTIVITY. Section 15 of this Act is                                                                              
     retroactive to June 21, 2009."                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 15, line 19:                                                                                                          
          Delete "Section 21"                                                                                                   
          Insert "Section 22"                                                                                                   
                                                                                                                                
     Page 15, line 22:                                                                                                          
          Delete "sec. 21"                                                                                                      
          Insert "sec. 22"                                                                                                      
                                                                                                                                
     Page 15, line 24:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 32"                                                                                                      
                                                                                                                                
                                                                                                                                
REPRESENTATIVE HOLMES objected for the purpose of discussion.                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  if  there was  any other  gender                                                               
neutral descriptor.                                                                                                             
                                                                                                                                
MS. KURTZ  explained that  the gender  neutral language  had been                                                               
taken from  federal statute, and  given the tax issue,  she would                                                               
prefer to return to the original wording.                                                                                       
                                                                                                                                
3:10:58 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS,   after  ascertaining  that  there   was  no  more                                                               
testimony, closed public testimony.                                                                                             
                                                                                                                                
REPRESENTATIVE HOLMES removed her objection.                                                                                    
                                                                                                                                
There being no further objection, Amendment 1 was adopted.                                                                      
                                                                                                                                
3:11:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  moved  to   report  CSSB  265  (JUD),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There  being no  objection, HCS                                                               
CSSB  265(JUD) was  reported from  the  House Judiciary  Standing                                                               
Committee.                                                                                                                      

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