Legislature(2003 - 2004)

05/04/2004 01:55 PM Senate L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
       CSHB 490(JUD)am-EMPLOYMENT SECURITY ACT AMENDMENTS                                                                   
                                                                                                                                
CHAIR  CON  BUNDE  announced  CSHB  490(JUD)  am  to  be  up  for                                                               
consideration.                                                                                                                  
                                                                                                                                
MR.  TOM  NELSON,  Director,  Division  of  Employment  Security,                                                               
Department of Labor and  Workforce Development (DOLWD), explained                                                               
that the changes are mainly  housekeeping measures and will align                                                               
state law with federal law  and will bring Alaska into compliance                                                               
with the  Unemployment Insurance  overpayment arrangement  it has                                                               
with other states.                                                                                                              
                                                                                                                                
CHAIR BUNDE asked if anyone opposed the bill.                                                                                   
                                                                                                                                
MR. NELSON replied that he hadn't heard of any opposition.                                                                      
                                                                                                                                
MS.  TOBY STEINBERGER,  Assistant  Attorney  General, offered  to                                                               
explain sections 1 -  3 and 8. The changes in  sections 1- 3 deal                                                               
with employment  security records for criminal  investigation and                                                               
prosecution  purposes.  Locations   of  employment  of  suspects,                                                               
witnesses,  victims and  persons on  parole or  probation can  be                                                               
found.                                                                                                                          
                                                                                                                                
TAPE 04-38, SIDE B                                                                                                            
                                                                                                                              
MS. STEINBERGER  noted that the  Employment Security  Division is                                                               
heavily  federally  funded.  The  U.S. Department  of  Labor  has                                                               
required  that  its  records  be   kept  confidential  with  some                                                               
exceptions.  Accordingly,  AS  23.20.110 has  allowed  for  these                                                               
exceptions, but none  of them allow for  releasing of information                                                               
for criminal  prosecution and  investigation purposes  other than                                                               
for  prosecuting cases  against claimants  who have  fraudulently                                                               
received  unemployment  compensation   benefits.  This  amendment                                                               
would  allow the  Criminal Division  to find  suspects, witnesses                                                               
and  victims since  the information  is so  up-to-date. Sometimes                                                               
people  move  by  the  time  the case  goes  to  trial  and  this                                                               
information will  help in finding  out where they work.  The U.S.                                                               
Department  of Labor  has reviewed  and  approved the  amendment.                                                               
Other  states -  Washington,  Iowa, Arkansas,  Georgia, Utah  and                                                               
Oklahoma  -  have been  allowed  to  release employment  security                                                               
information for criminal investigations and prosecutions.                                                                       
                                                                                                                                
SENATOR FRENCH  asked for a quick  review of what happens  in the                                                               
rest of the bill.                                                                                                               
                                                                                                                                
MR.  NELSON  explained  that  sections   4  -  12  authorize  the                                                               
department to  adopt regulations  providing for  the distribution                                                               
of  unclaimed  excess contributions.  Sections  5  and 6  clarify                                                               
statute  by adding  the terms  "manager"  and "limited  liability                                                               
company"  to  the  definitions.  Section  7  brings  Alaska  into                                                               
conformity  with the  Interstate Reciprocal  Overpayment Recovery                                                               
Arrangement  that  it has  with  other  states and  provides  the                                                               
Employment Security Division the  ability to collect unemployment                                                               
insurance  overpayments on  behalf  of other  states for  reasons                                                               
other than fraud.  States in this agreement  already provide this                                                               
service to Alaska.                                                                                                              
                                                                                                                                
Section  8  adds a  definition  of  action  to  mean a  court  or                                                               
administrative proceeding  not brought  under this chapter  or in                                                               
arbitration proceeding.  Section 10  aligns Alaska  language with                                                               
federal  law by  clarifying which  health care  professionals are                                                               
excluded from  the definition of employment.  Only student nurses                                                               
and medical  interns are excluded. Section  11 clarifies language                                                               
that  provides an  exclusion  from the  definition  of wages  for                                                               
payments  or benefits  provided by  the employer  for educational                                                               
assistance to  its employees. Federal  law already  provides this                                                               
exclusion  from their  definition  of wages.  Section  13 is  the                                                               
immediate effective date clause.                                                                                                
                                                                                                                                
SENATOR  RALPH  SEEKINS  moved  to  pass  CSHB  490(JUD  am  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note.  Senators Gary  Stevens, Davis,  French, Seekins  and Chair                                                               
Bunde vote yea; and CSHB 490(JUD) am moved from committee.                                                                      

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