00 CS FOR HOUSE BILL NO. 193(FIN) am 01 "An Act relating to minimum paid sick leave requirements; establishing a paid parental 02 leave program; relating to employer surcharges; relating to the employment assistance 03 and training program account; relating to unemployment benefits; relating to the 04 collection of child support obligations; relating to employee unemployment tax credits; 05 relating to employer contributions to unemployment; relating to the duties of the 06 Department of Labor and Workforce Development; and providing for an effective 07 date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09  * Section 1. AS 23.10.066 is amended to read:  10 Sec. 23.10.066. Minimum paid sick leave benefit. Employers in the state 11 with 10 or more employees are required to provide their employees paid sick leave as 12 follows: 13 (1) [EMPLOYERS WITH 15 OR MORE EMPLOYEES SHALL 01 ALLOW EMPLOYEES TO ACCRUE] a minimum of one hour of paid sick leave 02 shall accrue for every 30 hours worked, but employees are not entitled to accrue or 03 use more than 56 hours of paid sick leave a [PER] year, unless their employer sets a 04 higher limit; 05 (2) [EMPLOYERS WITH FEWER THAN 15 EMPLOYEES SHALL 06 ALLOW EMPLOYEES TO ACCRUE A MINIMUM OF ONE HOUR OF PAID 07 SICK LEAVE FOR EVERY 30 HOURS WORKED, BUT EMPLOYEES ARE NOT 08 ENTITLED TO ACCRUE OR USE MORE THAN 40 HOURS OF PAID SICK 09 LEAVE PER YEAR, UNLESS THEIR EMPLOYER SETS A HIGHER LIMIT; 10 (3)] employees who are exempt from overtime requirements under 29 11 U.S.C. 213(a)(1) shall be assumed to work 40 hours in each work week for purposes 12 of paid sick leave accrual unless their normal work week is less than 40 hours, in 13 which case paid sick leave accrues based on [UPON] that normal work week; 14 (3) [(4)] paid sick leave shall carry over to the following year, but an 15 employer is not required to allow an employee to use more than the applicable 16 amounts of paid sick leave described in (1) [AND (2)] of this section a [PER] year; 17 (4) [(5)] paid sick leave as provided in this section shall begin to 18 accrue at the commencement of employment or July 1, 2025, whichever is later; an 19 employee shall be entitled to use paid sick leave as it is accrued; 20 (5) [(6)] any employer with a paid leave or paid time off policy [,] who 21 makes available an amount of paid leave that is sufficient to meet the requirements of 22 this section and that may be used for the same purposes and under the same conditions 23 as paid sick leave under this section [,] is not required to provide additional paid sick 24 leave; 25 (6) [(7)] an employee who is transferred to a separate entity or 26 location, but remains employed by the same employer, is entitled to all paid sick leave 27 accrued at the former [PRIOR] entity or location; when there is a separation from 28 employment, but the employee is rehired within six months after [OF] separation by 29 the same employer, previously accrued and unused paid sick leave shall be 30 immediately reinstated; when a different employer succeeds or takes the place of an 31 existing employer, all employees of the original employer who remain employed by 01 the successor employer are entitled to all accrued and unused paid sick leave;  02 (7) an employer may, at the employee's request, allow an employee  03 to exchange accrued sick leave for the cash value of the accrued sick leave. 04  * Sec. 2. AS 23.10.067 is amended to read: 05 Sec. 23.10.067. Use [UTILIZATION] of paid sick leave benefit. The paid 06 sick leave benefit required under AS 23.10.066 may be used [UTILIZED] as follows: 07 (1) employees shall be permitted to use paid sick leave for [:] 08 (A) an employee's mental or physical illness, injury, or health 09 condition; the employee's need for medical diagnosis, care, or treatment; or the 10 employee's need for preventative medical care; 11 (B) care or assistance to the employee's family member relating 12 to the needs described in (A) of this paragraph; in this subparagraph, "family 13 member" means an immediate family member as defined in AS 39.52.960 14 [PURSUANT TO AS 39.52.960(11)]; a domestic partner; a foster child, legal 15 ward, or person to whom the employee stands in loco parentis; a foster parent, 16 adoptive parent, legal guardian, or [A] person who stood in loco parentis when 17 the employee was a minor child; or any other individual related by blood or 18 whose close association is the equivalent of a family relationship; or 19 (C) absences necessary due to domestic violence, sexual 20 assault, or stalking, if [PROVIDED] the leave is to allow the employee to 21 obtain, for the employee or a family member, [:] medical or psychological 22 attention; services from a victim's aid organization; relocation or steps to 23 secure an existing home; or legal services, including participation in any 24 investigation or civil or criminal proceeding; 25 (2) when the need for paid sick leave is foreseeable, an [THE] 26 employee who is not incapacitated shall make a good faith effort to provide notice to 27 the employer in advance of the use of paid sick leave and before the beginning of the  28 employee's workday for which the sick leave is used and make a reasonable effort 29 to schedule use of paid sick leave in a manner that does not unduly disrupt the 30 employer's operations; 31 (3) for paid sick leave of more than three consecutive workdays, an 01 employer may require reasonable documentation as follows, showing that the paid 02 sick leave has been used for a purpose covered by (1) of this section: 03 (A) [;] documentation signed by a health care professional 04 indicating that paid sick leave is or was necessary shall be considered 05 reasonable documentation for the purposes of (1)(A) or (B) of this section 06 [PURPOSES], but an employer may not require that the documentation explain 07 the nature or details of the illness or underlying health needs; 08 (B) [(A)] in cases of domestic violence, sexual assault, or 09 stalking [,] under (1)(C) of this section, one of the following types of 10 documentation selected by the employee shall be considered reasonable 11 documentation: a police report; a written statement from a witness advocate 12 affirming services from a victim's aid organization; a court document 13 indicating relevant legal action; or a written, non-notarized statement from the 14 employee affirming that paid sick leave was taken for a qualifying purpose of 15 (1)(C) of this section; 16 (C) [(B)] unless otherwise required by law, an employer may 17 not require disclosure of the details of an employee's or an employee's family 18 member's health or safety information as a condition of providing paid sick 19 leave under AS 23.10.066 and must treat any health or safety information 20 regarding an employee or employee's family member as confidential medical 21 records; 22 (4) paid sick leave under AS 23.10.066 may be used in the smaller of 23 hourly increments or the smallest increment that the employer's payroll system uses to 24 account for absences or use of other time; 25 (5) an employer may not interfere with, restrain, or deny the exercise 26 of, or the attempt to exercise, the right to paid sick leave under AS 23.10.066; an 27 employer may not [:] 28 (A) engage in retaliation or discrimination [,] or take any other 29 adverse action, against an employee who uses [UTILIZES], or attempts to use 30 [UTILIZE], their paid sick leave; 31 (B) require, as a condition of an employee's taking paid sick 01 leave under this section and AS 23.10.066, that the employee search for or find 02 a replacement worker to cover the hours during which the employee is using 03 paid sick leave; or 04 (C) use an absence control policy that counts paid sick leave 05 taken under AS 23.10.066 and this section as an absence that may lead to or 06 result in retaliation or any other adverse action.  07  * Sec. 3. AS 23.10.068(c) is amended to read: 08 (c) Employers shall give employees who are entitled to paid sick leave 09 written notice of the following at the commencement of employment or within 30 days 10 after [OF] this section's effective date, whichever is later: that beginning July 1, 2025, 11 employees are entitled to paid sick leave and the amount of paid sick leave, the terms 12 of its use guaranteed under AS 23.10.066 and 23.10.067, and that retaliation against 13 employees who request or use paid sick leave is prohibited. 14  * Sec. 4. AS 23.10.069 is amended by adding a new subsection to read: 15 (d) Employment of seasonal workers is exempt from the requirements of 16 AS 23.10.066 - 23.10.068. In this subsection, "seasonal worker" means an employee 17 who is hired for a specific period related to peak business need, not to exceed six 18 months in each calendar year. 19  * Sec. 5. AS 23.10 is amended by adding new sections to read: 20 Article 9. Alaska Paid Parental Leave Program.  21 Sec. 23.10.700. Paid parental leave program. The department shall 22 administer the paid parental leave program established under AS 23.10.700 - 23 23.10.795.  24 Sec. 23.10.705. Parental leave fund account. The parental leave fund account 25 is established as a separate fund in the state treasury. The department shall deposit 26 money collected under AS 23.10.710 in the account. The legislature may appropriate 27 the annual estimated balance in the account and interest earned on the account to the 28 department to carry out the purposes of AS 23.10.700 - 23.10.795. Money in the 29 account does not lapse. 30 Sec. 23.10.710. Contributions or reimbursement payments for paid  31 parental leave. (a) Except as provided in (b) and (d) of this section, in the manner 01 provided in AS 23.20 and for the benefit of the paid parental leave program, the 02 department shall collect from each employee an amount equal to .15 percent of the 03 wages as set out in AS 23.20.175, on which the employee is required to make 04 contributions under AS 23.20.290(d). 05 (b) A nonprofit organization, governmental entity, or federally recognized 06 tribe that has elected to make payments in place of contributions under AS 23.20.277 07 shall make reimbursement payments to the paid parental leave program in the manner 08 provided in AS 23.20.277. 09 (c) The department shall assess and collect, under AS 23.20.185 - 23.20.275, 10 interest and penalties for delinquent reports and payments due under this section. 11 Interest and penalties collected shall be handled in accordance with AS 23.20.130(d). 12 (d) The department shall adopt regulations establishing a process for 13 employers who are exempt from participating in the paid parental leave program to opt 14 into the program. 15 Sec. 23.10.715. Qualifying purpose. An eligible employee may use paid 16 parental leave when the employee needs to be absent from work to 17 (1) care for a child within 12 months of the 18 (A) birth of that child to or adoption of that child by the eligible 19 employee; or 20 (B) appointment of the eligible employee as the legal guardian 21 of that child; or 22 (2) complete an adoption or legal guardianship process of a child 23 before the child is adopted by or placed with the employee. 24 Sec. 23.10.720. Paid parental leave claim. (a) The department shall establish 25 by regulation procedures for filing a claim for paid parental leave under AS 23.10.700 26 - 23.10.795, including a procedure for certifying that the leave is for a qualifying 27 purpose under AS 23.10.715. 28 (b) An employee may file a claim with the department for paid parental leave 29 not more than 60 days before the anticipated start date of the qualifying absence from 30 work nor more than 90 days after the date on which the qualifying absence from work 31 began. The department may waive the 90-day filing deadline for good cause. The 01 department may process a claim without the eligible employee providing exact dates 02 of an anticipated qualifying absence from work. The department may adjust claim data 03 through a claim modification process established by the department. 04 (c) The department may accept any of the following as sufficient evidence that 05 a paid parental leave claim is for a qualifying purpose: 06 (1) the child's birth certificate; 07 (2) a document from the child's health care provider or the health care 08 provider of the person who gave birth to the child, stating the child's date of birth; 09 (3) a document from the child's health care provider, the adoption 10 agency involved in the adoption, or another individual approved by the department 11 confirming the adoption or anticipated adoption and the date of the adoption or 12 anticipated adoption; 13 (4) a form signed by the employee acknowledging paternity of the 14 child that meets the requirements of AS 18.50.165; or 15 (5) a document from a state or tribal court confirming a petition for or 16 decree of legal guardianship of the child. 17 Sec. 23.10.725. Eligibility; benefit amount; duration. (a) An employee who 18 is paid at least $2,500 in wages during the employee's base period for employment 19 covered by AS 23.20.700 - 23.20.795 is eligible to receive paid parental leave under 20 AS 23.10.700 - 23.10.795 if those wages were paid in at least two of the calendar 21 quarters of the employee's base period, and the employee has been working for that 22 employer for at least 13 weeks. Paid parental leave begins the first day of absence 23 from work for a qualifying purpose under AS 23.10.715. 24 (b) The department shall calculate an employee's base period for purposes of 25 (a) of this section using the first four of the last five completed calendar quarters 26 immediately preceding the first day of the employee's benefit year, except that, if an 27 employee would not otherwise be eligible for paid parental leave because of the use of 28 a base period that does not include the most recently completed calendar quarter 29 immediately preceding the first day of the employee's benefit year, the department 30 shall calculate the employee's base period and determine the employee's eligibility 31 using the four most recently completed calendar quarters before the start of the benefit 01 year. For an individual who has been separated from employment for not more than 26 02 weeks, the department shall calculate the individual's base period using the first four 03 of the last five completed calendar quarters immediately preceding the individual's 04 separation from employment, except that, if an individual would not otherwise be 05 eligible for paid parental leave because of the use of a base period that does not 06 include the most recently completed calendar quarter, the department shall calculate 07 the individual's base period and determine the individual's eligibility using the four 08 most recently completed calendar quarters before the start of the benefit year. 09 (c) The department shall determine an eligible employee's weekly benefit in 10 the same manner as provided in AS 23.20.350(d). The department shall calculate the 11 employee's weekly benefit in accordance with AS 23.10.730 for employees using the 12 accelerated benefit option. 13 (d) The maximum number of weeks for which an eligible employee may take 14 paid parental leave, and for which paid parental leave benefits are payable in a benefit 15 year, is between eight and 12 weeks, cumulative, as determined by the department. 16 The department shall determine and make public the maximum duration of the 17 parental leave benefit each year, based on fund solvency, forecasted use, and actuarial 18 studies completed under AS 23.10.780. For employees using the accelerated benefit 19 option, the department shall calculate the number of weeks an eligible employee may 20 take paid parental leave in accordance with AS 23.10.730. 21 (e) In this section, "benefit year" means a period of 52 consecutive weeks 22 beginning at 12:00 a.m. of the Sunday preceding the day that an eligible employee 23 first files a claim for paid parental leave and, thereafter, the period of 52 consecutive 24 weeks beginning at 12:00 a.m. of the Sunday preceding the day that the eligible 25 employee next files the claim after the end of the eligible employee's last preceding 26 benefit year; however, for an eligible employee covered by this subsection, "benefit 27 year" also means a period of 53 weeks if the filing of a claim for paid parental leave 28 would result in overlapping any quarter of the base year of a previously filed request 29 for paid parental leave. 30 Sec. 23.10.730. Accelerated benefit option. An eligible employee may choose 31 to receive the paid parental leave benefit on an accelerated basis. For each week the 01 employee elects the accelerated benefit option, the employee shall receive double the 02 weekly benefit amount to which the employee is entitled. However, for each week the 03 employee chooses the accelerated benefit option, the duration of the benefit is reduced 04 by a corresponding week.  05 Sec. 23.10.735. Coordination of benefits. (a) Leave taken under the paid 06 parental leave program shall run concurrently with leave that also qualifies as leave 07 under 29 U.S.C. 2601 - 2654 (Family and Medical Leave Act) or AS 39.20.500 - 08 39.20.550. 09 (b) An employer may require that payments for paid parental leave under 10 AS 23.10.700 - 23.10.795 be made concurrently with, or coordinated with, payments 11 or leave provided under a short-term disability policy or a separate bank of paid time 12 off designated specifically for parental leave under a collective bargaining agreement 13 or employer policy. The employer must provide employees written notice of this 14 requirement. 15 (c) The department shall adopt regulations establishing a process for an 16 employer to request to opt out of the paid parental leave program. The regulations 17 must 18 (1) only allow an employer to opt out if the employer provides a 19 specifically designated paid parental leave allowance under a collective bargaining 20 agreement, employment contract, or employer policy that meets or exceeds the paid 21 parental leave available under AS 23.10.700 - 23.10.795; and 22 (2) provide a process for an employer to appeal a determination made 23 by the department. 24 (d) An employee may not be required to use or exhaust any accrued vacation 25 leave, sick leave, or other paid time off before or while receiving paid parental leave 26 benefits under AS 23.10.700 - 23.10.795. However, the employee may choose to use 27 accrued vacation leave, sick leave, or other paid time off while receiving paid parental 28 leave benefits under AS 23.10.700 - 23.10.795 if the total amount received does not 29 exceed the employee's average weekly earnings. 30 (e) Paid parental leave under AS 23.10.700 - 23.10.795 does not relieve an 31 employer from the obligation to comply with more generous terms included in a 01 collective bargaining agreement or employment contract. 02 Sec. 23.10.740. Disqualification. In addition to any other penalty that may 03 apply, an employee may be disqualified from paid parental leave benefits for up to one 04 year if the department determines the employee intentionally made a false statement or 05 misrepresentation of a material fact, or intentionally failed to report a material fact, to 06 obtain paid parental leave. 07 Sec. 23.10.745. Appeals. The department shall establish a process for an 08 employee to appeal a determination by the department regarding a paid parental leave 09 claim within 90 days after receiving notice of the determination. 10 Sec. 23.10.750. Recovery of improper payments. (a) An employee who 11 receives paid parental leave to which the employee is not entitled under AS 23.10.700 12 - 23.10.795 shall repay to the department the amount improperly paid. The department 13 shall deposit the payment in the parental leave fund account established in 14 AS 23.10.705.  15 (b) The department shall promptly prepare and send a notice of determination 16 to the employee at the employee's last address of record, stating that the employee is 17 required to repay the amount of paid parental leave received in error. If the employee 18 does not repay the amount received in error within a reasonable time set by the 19 department, the department shall deduct the amount from future paid parental leave 20 benefits owed to the employee or from the permanent fund dividend of the employee 21 under AS 43.23.140(b)(6). However, the department may waive repayment of all or a 22 portion of the amount of paid parental leave received in error if the department 23 determines that the employee has died or has acted in good faith when claiming and 24 receiving paid parental leave benefits and that requiring repayment would be unfair or 25 inequitable. 26 (c) If the employee has not repaid the paid parental leave benefit or if the 27 amount has not been deducted from future benefits or the permanent fund dividend of 28 the employee within two years after the last day of the year in which payment was 29 made, the commissioner may declare the amount uncollectible. 30 Sec. 23.10.755. Public education and outreach campaign. The department 31 shall conduct a public education and outreach campaign to educate employees and 01 employers about the availability of paid parental leave. 02 Sec. 23.10.760. Employment protection; health insurance maintenance;  03 enforcement. (a) An eligible employee who takes paid parental leave under 04 AS 23.10.700 - 23.10.795 is entitled to return to the position the employee held when 05 the leave began or to be restored to an equivalent position with equivalent seniority, 06 pay, benefits, working hours, and other terms and conditions of employment, 07 including service credits the employee was entitled to at the start of paid parental 08 leave. 09 (b) During any period of qualified paid parental leave, the employer shall 10 maintain the employee's health care benefits on the same terms as before the leave 11 began. The employee shall continue to pay the employee's share of the cost of any 12 health care benefits. 13 (c) An employer may not take or threaten any adverse employment action or 14 discriminate against the employee for applying for or using paid parental leave under 15 AS 23.10.700 - 23.10.795. 16 (d) An employer may not take any action that prevents or discourages an 17 employee from taking paid parental leave under AS 23.10.700 - 23.10.795, including 18 failing to provide timely and complete information required by the department or 19 reporting or threatening to report suspected citizenship or immigration status of the 20 employee or an employee's family member. 21 (e) An employer may not adopt or enforce a policy that allows paid parental 22 leave taken under AS 23.10.700 - 23.10.795 to be considered as an absence that could 23 result in discipline, discharge, demotion, suspension, or any other adverse action 24 against the employee. 25 (f) The department shall establish a complaint process by regulation for an 26 employee who believes the employee's employer violated this section. A complaint 27 must be filed within two years after the violation occurred or the date the employee 28 reasonably should have known about the violation, whichever is later. 29 (g) After granting the employer a reasonable opportunity for a fair hearing, or 30 after the employer acknowledges that a violation occurred, the department may 31 determine whether a violation occurred. If the department determines a violation 01 occurred, the department may order the employer to remedy the violation, which may 02 include 03 (1) granting the requested paid parental leave; 04 (2) providing up to two years of back pay, plus interest; 05 (3) reinstating the employee; 06 (4) paying to the complainant attorney fees allowed under the Alaska 07 Rules of Civil Procedure; 08 (5) other relief the department considers appropriate. 09 (h) After the department issues a final determination, either party may appeal 10 the determination to a court of competent jurisdiction. 11 Sec. 23.10.765. Notice to employees. (a) An employer shall provide written 12 notice to each employee upon hiring, and annually thereafter, of the benefits available 13 under AS 23.10.700 - 23.10.795. The notice must include 14 (1) the employee's right to paid parental leave benefits under 15 AS 23.10.700 - 23.10.795 and the terms under which the benefits may be used; 16 (2) the amount of paid parental leave available; 17 (3) the procedure for filing a claim for paid parental leave benefits; 18 (4) notice that discrimination and retaliatory personnel actions against 19 the employee for requesting, applying for, or using paid parental leave benefits is 20 prohibited; and 21 (5) notice that the employee has a right to file a complaint for a 22 violation of AS 23.10.700 - 23.10.795. 23 (b) Each employer shall display and maintain a poster in a conspicuous place 24 accessible to employees at the employer's place of business that contains the 25 information required by this section in a form approved by the department. 26 Sec. 23.10.770. Child support interception. (a) Notwithstanding any other 27 provision of AS 23.10.700 - 23.10.795, an individual filing a new claim for paid 28 parental leave must disclose whether child support obligations are owed by that 29 individual. If the individual discloses that child support obligations are owed and the 30 individual is determined to be eligible for paid parental leave, the department shall 31 notify the child support services agency of the Department of Revenue that the 01 individual has been determined to be eligible for paid parental leave.  02 (b) The department shall, unless the obligor and obligee agree otherwise, 03 deduct and withhold from paid parental leave compensation payable to an individual 04 who owes child support obligations 05 (1) the amount specified by the individual to the department to be 06 deducted and withheld under this subsection, if neither (2) nor (3) of this subsection is 07 applicable; 08 (2) the amount specified in an agreement submitted to the department 09 under 42 U.S.C. 654(19)(B)(i) (sec. 454(19)(B)(i), Social Security Act), by the child 10 support services agency of the Department of Revenue, unless (3) of this subsection is 11 applicable; or 12 (3) any amount required to be deducted and withheld through legal 13 process, as defined in 42 U.S.C. 662(e) (sec. 462(e), Social Security Act), properly 14 served on the department. 15 (c) The department shall pay an amount deducted and withheld under (b) of 16 this section to the child support services agency of the Department of Revenue. 17 (d) An amount deducted and withheld under (b) of this section shall for all 18 purposes be treated as if it were paid to the individual as paid parental leave and paid 19 by that individual to the child support services agency of the Department of Revenue 20 in satisfaction of the individual's child support obligations. 21 (e) This section applies only if appropriate arrangements have been made for 22 reimbursement by the child support services agency of the Department of Revenue for 23 the administrative costs incurred by the department under this section. 24 (f) In this section, "child support obligation" includes only obligations that are 25 being enforced under a plan described in 42 U.S.C. 654 (sec. 454, Social Security 26 Act), which has been approved by the United States Secretary of Health and Human 27 Services under 42 U.S.C. 651-665 (Part D of Title IV of the Social Security Act). 28 Sec. 23.10.775. Federal income tax withholding. (a) If the Internal Revenue 29 Service determines that paid parental leave benefits under AS 23.10.700 - 23.10.795 30 are subject to federal income tax, when an individual files a new claim for paid 31 parental leave, the department shall advise the individual that 01 (1) paid parental leave compensation benefits are subject to federal 02 income tax; 03 (2) federal requirements exist pertaining to estimated federal tax 04 payments; 05 (3) the individual may elect to have federal income tax deducted and 06 withheld from the individual's payment of paid parental leave at the amount specified 07 in 26 U.S.C. (Internal Revenue Code); and 08 (4) the individual is permitted to change a previously elected status for 09 the withholding of federal income tax. 10 (b) Amounts deducted for federal income taxes and withheld from paid 11 parental leave shall remain in the parental leave fund account established in 12 AS 23.10.705 until transferred to the federal Internal Revenue Service as payment of 13 federal income tax. 14 (c) The department shall comply with legal requirements of the federal 15 Department of Labor and the Internal Revenue Service regarding the deduction and 16 withholding of federal income tax. 17 Sec. 23.10.780. Actuarial studies. Every two years, the commissioner shall 18 submit to the governor, the speaker of the house of representatives, and the president 19 of the senate an actuarial study of the benefit structures established under 20 AS 23.10.700 - 23.10.795. The commissioner shall deliver the study to the senate 21 secretary and the chief clerk of the house of representatives and notify the legislature 22 that the study is available.  23 Sec. 23.10.795. Definitions. In AS 23.10.700 - 23.10.795, 24 (1) "employee" means a person in the service of an employer who is 25 subject to payment of contributions, or whose employer has elected to make 26 reimbursement payments, under AS 23.20; "employee" does not include a person who 27 is hired for a specific period, not to exceed six months in each calendar year, related to 28 peak business need; 29 (2) "employer" means an employer that is subject to payment of 30 contributions under AS 23.20.165(a), 23.20.276, or 23.20.278 or reimbursement 31 payments under AS 23.20.277. 01  * Sec. 6. AS 23.10.710(a), enacted by sec. 5 of this Act, is amended to read: 02 (a) Except as provided in (b) and (d) of this section, in the manner provided in 03 AS 23.20 and for the benefit of the paid parental leave program, the department shall 04 collect from each employee an amount equal to .15 percent of the wages as set out in 05 AS 23.20.175 [, ON WHICH THE EMPLOYEE IS REQUIRED TO MAKE 06 CONTRIBUTIONS UNDER AS 23.20.290(d)]. The department shall remit money 07 collected under this subsection in accordance with AS 37.10.050. 08  * Sec. 7. AS 23.10.710, enacted by sec. 5 of this Act, is amended by adding new subsections 09 to read: 10 (e) The department may implement an employer paid parental leave 11 surcharge. If the department implements an employer surcharge, the department shall, 12 in the manner provided in AS 23.20, collect an amount equal to .20 percent of the 13 wages, as set out in AS 23.20.175, on which the employer is required to make 14 contributions under AS 23.20.290(c). The department shall remit money collected 15 under this subsection in accordance with AS 37.10.050. 16 (f) If the department implements an employer paid parental leave surcharge, 17 the department shall credit against the amount owed by an employer under (e) of this 18 section an amount equal to the contributions paid by the employer under 19 AS 23.20.290(c) above .60 percent. If the amount of the credit equals or exceeds the 20 amount owed under (e) of this section, the employer's liability under (e) of this section 21 is zero. 22  * Sec. 8. AS 23.10.710, enacted by sec. 5 of this Act, is amended by adding a new 23 subsection to read: 24 (g) Notwithstanding AS 23.20.290(d), the department shall credit each 25 employee with an amount equal to the amount collected from the employee under (a) 26 of this section against unemployment contributions owed by the employee under 27 AS 23.20. 28  * Sec. 9. AS 23.15.630(a) is amended to read: 29 (a) In the manner provided in AS 23.20, the department shall collect from 30 each employee an amount equal to one-tenth of one percent of the wages, as set out in 31 AS 23.20.175 [, ON WHICH THE EMPLOYEE IS REQUIRED TO MAKE 01 CONTRIBUTIONS UNDER AS 23.20.290(d)]. The department shall remit to the 02 Department of Revenue, in accordance with AS 37.10.050, money collected under this 03 subsection. 04  * Sec. 10. AS 23.15.630 is amended by adding new subsections to read: 05 (d) The department may implement an employer state training and 06 employment program surcharge. If the department implements an employer surcharge, 07 the department shall, in the manner provided in AS 23.20, collect an amount equal to 08 .30 percent of the wages, as set out in AS 23.20.175, on which the employer is 09 required to make contributions under AS 23.20.290(c). The department shall remit 10 money collected under this subsection in accordance with AS 37.10.050. 11 (e) If the department implements an employer state training and employment 12 program surcharge, the department shall credit against the amount owed by an 13 employer under (d) of this section an amount equal to the contributions paid by the 14 employer under AS 23.20.290(c) above .30 percent. If the amount of the credit equals 15 or exceeds the amount owed under (d) of this section, the employer's liability under 16 (d) of this section is zero. 17  * Sec. 11. AS 23.15.835(a) is amended to read: 18 (a) In the manner provided in AS 23.20 and for the benefit of the program, the 19 department shall collect from each employee an amount equal to .25 percent of the 20 wages, as set out in AS 23.20.175 [, ON WHICH THE EMPLOYEE IS REQUIRED 21 TO MAKE CONTRIBUTIONS UNDER AS 23.20.290(d)]. The department shall 22 remit to the Department of Revenue, in accordance with AS 37.10.050, money 23 collected under this subsection. 24  * Sec. 12. AS 23.20.135(b) is amended to read: 25 (b) The department, or a designee of the department, shall immediately 26 deposit, upon receipt, all money payable to the fund in the clearing account. Refunds 27 of contributions erroneously collected and payable under AS 23.20.225 and 28 23.20.526(a)(11) may be paid from the clearing account in the same manner, or from 29 the training and building fund. Interest and penalty payments may not be refunded 30 from the unemployment compensation fund. After clearance, all money in the clearing 31 account [, EXCEPT FOR THAT PORTION OF EMPLOYEE CONTRIBUTIONS 01 UNDER AS 23.20.290(d) USED TO PAY INTEREST ON ADVANCES RECEIVED 02 UNDER AS 23.20.140,] shall be immediately deposited with the United States 03 Secretary of the Treasury to the credit of the account of this state in the unemployment 04 trust fund established and maintained under 42 U.S.C. 1104 (sec. 904, Social Security 05 Act), as amended. 06  * Sec. 13. AS 23.20.290(c) is amended to read: 07 (c) The rate of contributions for each employer is a percentage of the average 08 benefit cost rate multiplied by the employer's experience factor set out in column C of 09 the table in this subsection opposite the employer's applicable rate class set out in 10 column A plus the fund solvency adjustment surcharge required under (f) of this 11 section. That percentage is 76 percent beginning January 1, 2009, [AND] 73 percent 12 beginning January 1, 2010, and 100 percent beginning January 1, 2027. 13 Notwithstanding any other provision of this chapter, including the application of  14 credits [HOWEVER], the rate of contributions for an employer 15 (1) may not exceed [BE LESS THAN ONE PERCENT OR MORE 16 THAN] six and one-half percent;  17 (2) may not be less than .30 percent;  18 (3) with less than four quarters of experience may not be less than  19 one percent;  20 (4) [. THE RATE OF CONTRIBUTIONS FOR AN EMPLOYER] in 21 rate class 21 may not be less than 5.4 percent; and  22 (5) [. THE RATE OF CONTRIBUTIONS FOR AN EMPLOYER] 23 must be rounded to the nearest 1/100th of one percent. 24 COLUMN B COLUMN C 25 COLUMN A Cumulative Experience 26 Rate Class Ratable Payroll Factor 27 at least but less than 28 (percent) (percent) 29 1 5 .40 30 2 5 10 .45 31 3 10 15 .50 01 4 15 20 .55 02 5 20 25 .60 03 6 25 30 .65 04 7 30 35 .70 05 8 35 40 .80 06 9 40 45 .90 07 10 45 50 1.00 08 11 50 55 1.00 09 12 55 60 1.10 10 13 60 65 1.20 11 14 65 70 1.30 12 15 70 75 1.35 13 16 75 80 1.40 14 17 80 85 1.45 15 18 85 90 1.50 16 19 90 95 1.55 17 20 95 99.99 1.60 18 21 99.99 1.65. 19  * Sec. 14. AS 23.20.350(d) is amended to read: 20 (d) An individual who is eligible under (a) of this section is entitled to receive 21 the weekly benefit amount set out in column (B) of the table in this subsection that is 22 opposite the amount set out in column (A) of the individual's base period wages 23 determined under (c) of this section: 24 (A) (B) 25 Base Period Wages Weekly Benefit 26 Amount 27 At least But less than 28 0 2,500 $ 0 29 2,500 2,750 56 30 2,750 3,000 58 31 3,000 3,250 60 01 3,250 3,500 62 02 3,500 3,750 64 03 3,750 4,000 66 04 4,000 4,250 68 05 4,250 4,500 70 06 4,500 4,750 72 07 4,750 5,000 74 08 5,000 5,250 76 09 5,250 5,500 78 10 5,500 5,750 80 11 5,750 6,000 82 12 6,000 6,250 84 13 6,250 6,500 86 14 6,500 6,750 88 15 6,750 7,000 90 16 7,000 7,250 92 17 7,250 7,500 94 18 7,500 7,750 96 19 7,750 8,000 98 20 8,000 8,250 100 21 8,250 8,500 102 22 8,500 8,750 104 23 8,750 9,000 106 24 9,000 9,250 108 25 9,250 9,500 110 26 9,500 9,750 112 27 9,750 10,000 114 28 10,000 10,250 116 29 10,250 10,500 118 30 10,500 10,750 120 31 10,750 11,000 122 01 11,000 11,250 124 02 11,250 11,500 126 03 11,500 11,750 128 04 11,750 12,000 130 05 12,000 12,250 132 06 12,250 12,500 134 07 12,500 12,750 136 08 12,750 13,000 138 09 13,000 13,250 140 10 13,250 13,500 142 11 13,500 13,750 144 12 13,750 14,000 146 13 14,000 14,250 148 14 14,250 14,500 150 15 14,500 14,750 152 16 14,750 15,000 154 17 15,000 15,250 156 18 15,250 15,500 158 19 15,500 15,750 160 20 15,750 16,000 162 21 16,000 16,250 164 22 16,250 16,500 166 23 16,500 16,750 168 24 16,750 17,000 170 25 17,000 17,250 172 26 17,250 17,500 174 27 17,500 17,750 176 28 17,750 18,000 178 29 18,000 18,250 180 30 18,250 18,500 182 31 18,500 18,750 184 01 18,750 19,000 186 02 19,000 19,250 188 03 19,250 19,500 190 04 19,500 19,750 192 05 19,750 20,000 194 06 20,000 20,250 196 07 20,250 20,500 198 08 20,500 20,750 200 09 20,750 21,000 202 10 21,000 21,250 204 11 21,250 21,500 207 [206] 12 21,500 21,750 209 [208] 13 21,750 22,000 212 [210] 14 22,000 22,250 214 [212] 15 22,250 22,500 216 [214] 16 22,500 22,750 219 [216] 17 22,750 23,000 221 [218] 18 23,000 23,250 224 [220] 19 23,250 23,500 226 [222] 20 23,500 23,750 228 [224] 21 23,750 24,000 231 [226] 22 24,000 24,250 233 [228] 23 24,250 24,500 236 [230] 24 24,500 24,750 238 [232] 25 24,750 25,000 240 [234] 26 25,000 25,250 243 [236] 27 25,250 25,500 245 [238] 28 25,500 25,750 248 [240] 29 25,750 26,000 250 [242] 30 26,000 26,250 252 [244] 31 26,250 26,500 255 [246] 01 26,500 26,750 257 [248] 02 26,750 27,000 260 [250] 03 27,000 27,250 262 [252] 04 27,250 27,500 264 [254] 05 27,500 27,750 267 [256] 06 27,750 28,000 269 [258] 07 28,000 28,250 272 [260] 08 28,250 28,500 274 [262] 09 28,500 28,750 276 [264] 10 28,750 29,000 279 [266] 11 29,000 29,250 281 [268] 12 29,250 29,500 284 [270] 13 29,500 29,750 286 [272] 14 29,750 30,000 288 [274] 15 30,000 30,250 291 [276] 16 30,250 30,500 293 [278] 17 30,500 30,750 296 [280] 18 30,750 31,000 298 [282] 19 31,000 31,250 300 [284] 20 31,250 31,500 303 [286] 21 31,500 31,750 305 [288] 22 31,750 32,000 308 [290] 23 32,000 32,250 310 [292] 24 32,250 32,500 313 [294] 25 32,500 32,750 315 [296] 26 32,750 33,000 317 [298] 27 33,000 33,250 320 [300] 28 33,250 33,500 322 [302] 29 33,500 33,750 325 [304] 30 33,750 34,000 327 [306] 31 34,000 34,250 329 [308] 01 34,250 34,500 332 [310] 02 34,500 34,750 334 [312] 03 34,750 35,000 337 [314] 04 35,000 35,250 339 [316] 05 35,250 35,500 341 [318] 06 35,500 35,750 344 [320] 07 35,750 36,000 346 [322] 08 36,000 36,250 349 [324] 09 36,250 36,500 351 [326] 10 36,500 36,750 353 [328] 11 36,750 37,000 356 [330] 12 37,000 37,250 358 [332] 13 37,250 37,500 361 [334] 14 37,500 37,750 363 [336] 15 37,750 38,000 365 [338] 16 38,000 38,250 368 [340] 17 38,250 38,500 370 [342] 18 38,500 38,750 373 [344] 19 38,750 39,000 375 [346] 20 39,000 39,250 377 [348] 21 39,250 39,500 380 [350] 22 39,500 39,750 382 [352] 23 39,750 40,000 385 [354] 24 40,000 40,250 387 [356] 25 40,250 40,500 389 [358] 26 40,500 40,750 392 [360] 27 40,750 41,000 394 [362] 28 41,000 41,250 397 [364] 29 41,250 41,500 399 [366] 30 41,500 41,750 401 [368] 31 41,750 42,000 404 [370] 01 42,000 42,250 406 02 42,250 42,500 409 03 42,500 42,750 411  04 42,750 43,000 413  05 43,000 43,250 416  06 43,250 43,500 418  07 43,500 43,750 421  08 43,750 44,000 423  09 44,000 44,250 425  10 44,250 44,500 428  11 44,500 44,750 430  12 44,750 45,000 433  13 45,000 45,250 435  14 45,250 45,500 438  15 45,500 45,750 440  16 45,750 46,000 442  17 46,000 46,250 445  18 46,250 46,500 447  19 46,500 46,750 450  20 46,750 47,000 452  21 47,000 47,250 454  22 47,250 47,500 457  23 47,500 47,750 459  24 47,750 48,000 462  25 48,000 48,250 464  26 48,250 48,500 466  27 48,500 48,750 469  28 48,750 49,000 471  29 49,000 49,250 474  30 49,250 49,500 476  31 49,500 49,750 478  01 49,750 50,000 481  02 50,000 50,250 483  03 50,250 50,500 486  04 50,500 50,750 488  05 50,750 51,000 490  06 51,000 51,250 493  07 51,250 51,500 495  08 51,500 51,750 498  09 51,750 52,000 500  10 52,000 52,250 502  11 52,250 52,500 505  12 52,500 52,750 507  13 52,750 53,000 510  14 53,000 53,250 512  15 53,250 53,500 514  16 53,500 53,750 517  17 53,750 54,000 519  18 54,000 54,250 522  19 54,250 54,500 524  20 54,500 524 [370].  21  * Sec. 15. AS 23.20.350(f) is amended to read: 22 (f) An individual who establishes a benefit year is eligible for an allowance for 23 dependents in addition to the individual's weekly benefit amount. The department may 24 require an individual claiming or receiving an allowance for dependents to produce 25 income tax returns, birth certificates, notices of adoption or custody, social security 26 account number of spouse, verification of support documents, or other information 27 necessary to verify that the allowance is payable to the individual. The allowance for 28 dependents 29 (1) is $72 [$24] per week for each dependent, except that the total 30 allowance for dependents paid to an individual may not exceed $216 [$72] for each 31 week of unemployment; 01 (2) is payable beginning with the week during the benefit year in 02 which the individual claims an allowance for the dependent and is payable for the 03 remainder of the individual's eligibility for regular, extended, or supplemental 04 payments during the benefit year; 05 (3) may not be claimed for a new dependent after the end of the benefit 06 year or after the exhaustion of regular benefits in the benefit year [; 07 (4) REPEALED 08 (5) REPEALED].  09 * Sec. 16. AS 23.20.350 is amended by adding a new subsection to read: 10 (h) On January 1 of each year, the department shall increase the maximum 11 base period wages in (d) of this section by a percentage equal to the percentage 12 increase in the base of contributions calculated under AS 23.20.175 in comparison to 13 the base contributions calculated for the prior year. The new base period wage amount 14 shall be rounded to the nearest $250. The department shall increase the corresponding 15 weekly benefit amount in (d) of this section by $2 for each $250 increase in base 16 period wages. The department may not decrease the base period wage amount of the 17 weekly benefit amount. 18  * Sec. 17. AS 25.27.020(a) is amended to read: 19 (a) The agency shall 20 (1) seek enforcement of child support orders of the state in other 21 jurisdictions and shall obtain, enforce, and administer the orders in this state; 22 (2) adopt regulations to carry out the purposes of this chapter and 23 AS 25.25, including regulations that establish 24 (A) procedures for hearings conducted under AS 25.27.170 and 25 for administrative enforcement of support orders; 26 (B) subject to AS 25.27.025 and to federal law, a uniform rate 27 of interest on arrearages of support that shall be charged the obligor upon 28 notice if child support payments are 10 or more days overdue or if payment is 29 made by a check backed by insufficient funds; however, an obligor may not be 30 charged interest on late payment of a child support obligation, other than a 31 payment on arrearages, if the obligor is 01 (i) employed and income is being withheld from the 02 obligor's wages under an income withholding order; 03 (ii) receiving unemployment compensation and child 04 support obligations are being withheld from the obligor's 05 unemployment payments under AS 23.20.401; [OR] 06 (iii) receiving compensation for disabilities under 07 AS 23.30 and child support obligations are being withheld from the 08 obligor's compensation payments; or  09 (iv) receiving paid parental leave under  10 AS 23.10.770 and child support obligations are being withheld  11 from the obligor's compensation payments; 12 (C) procedures for establishing and disestablishing paternity 13 under AS 25.27.165 and 25.27.166, including procedures for hearings; and 14 (D) procedures under which the agency shall enter into 15 contracts or agreements with financial institutions, including brokerage houses, 16 insurance companies, and other companies providing individual investment, 17 transaction, or deposit accounts, doing business in the state to develop and 18 operate an automated data match system as required by 42 U.S.C. 666(a)(17); 19 the agency may pay a reasonable fee to a financial institution for conducting a 20 data match under a contract or agreement under this subparagraph; the fee may 21 not exceed the actual costs incurred by the financial institution for conducting 22 the data match; 23 (3) administer and enforce AS 25.25 (Uniform Interstate Family 24 Support Act); 25 (4) establish, enforce, and administer child support obligations 26 administratively under this chapter; 27 (5) administer the state plan required under 42 U.S.C. 651 - 669 (Title 28 IV-D, Social Security Act) as amended; 29 (6) disburse support payments collected by the agency to the obligee, 30 together with interest charged under (2)(B) of this subsection; 31 (7) establish and enforce administratively under this chapter, or 01 through the superior courts of the state, child support orders from other jurisdictions 02 pertaining to obligors within the state; 03 (8) enforce and administer spousal support orders if a spousal support 04 obligation has been established with respect to the spouse and if the support obligation 05 established with respect to the child of that spouse is also being administered; 06 (9) obtain a medical support order that meets the requirements of 07 AS 25.27.060(c) and 25.27.063; 08 (10) act on behalf of the Department of Health in the enforcement of 09 AS 47.07.025(b); 10 (11) establish or disestablish, administratively under AS 25.27.165 - 11 25.27.166 or through court action, the paternity of a child; 12 (12) promptly provide to the Bureau of Vital Statistics, in a format 13 approved by the bureau, any final agency decision administratively establishing or 14 disestablishing the paternity of a child born in this state; and 15 (13) act as the central registry for all child support orders and exchange 16 information as required by federal law. 17  * Sec. 18. AS 37.05.146(c) is amended by adding a new paragraph to read: 18 (87) parental leave fund account (AS 23.10.705). 19  * Sec. 19. AS 23.15.630(b), 23.15.835(b); and AS 23.20.290(d) are repealed. 20  * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 COMMENCEMENT OF PAID PARENTAL LEAVE. Eligible employees may 23 receive paid parental leave beginning January 1, 2030, for qualifying purposes that occur on 24 or after January 1, 2030. 25  * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 TRANSITION: ACTUARIAL STUDIES. The commissioner of labor and workforce 28 development shall submit to the governor, the speaker of the house of representatives, and the 29 president of the senate the first actuarial study required by AS 23.10.780, enacted by sec. 5 of 30 this Act, on December 1, 2027. The commissioner shall deliver the study to the senate 31 secretary and the chief clerk of the house of representatives and notify the legislature that the 01 study is available. 02  * Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 STATE UNEMPLOYMENT INSURANCE LAW FEDERAL APPROVAL. To the 05 extent necessary to implement this Act, the Department of Labor and Workforce 06 Development shall submit for federal approval the changes to the unemployment insurance 07 laws of the state enacted by secs. 6, 7, 9 - 16, and 19 of this Act. 08  * Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 CONDITIONAL EFFECT; NOTIFICATION. (a) Sections 6, 7, 9 - 16, and 19 of this 11 Act take effect only if, and to the extent that, on or before July 1, 2027, the United States 12 Secretary of Labor approves the changes to the unemployment insurance laws of this state 13 under 26 U.S.C. 3304 (Federal Unemployment Tax Act), or determines that approval is not 14 necessary. 15 (b) AS 23.10.710(g), enacted by sec. 8 of this Act, takes effect only if the United 16 States Secretary of Labor does not approve the repeal of AS 23.20.290(d) by sec. 19 of this 17 Act. 18 (c) The commissioner of labor and workforce development shall notify the revisor of 19 statutes in writing within 30 days after the United States Secretary of Labor approves or does 20 not approve the changes to the unemployment insurance laws of this state. 21  * Sec. 24. If secs. 6, 7, 9 - 16, and 19 of this Act take effect, they take effect on January 1, 22 2027, or the day after the United States Secretary of Labor approves the changes to the 23 unemployment insurance laws of this state, whichever is later. 24  * Sec. 25. If sec. 8 of this Act takes effect, it takes effect on the day after the day the United 25 States Secretary of Labor does not approve the repeal of AS 23.20.290(d) by sec. 19 of this 26 Act. 27  * Sec. 26. Section 22 of this Act takes effect immediately under AS 01.10.070(c). 28  * Sec. 27. Sections 1 - 4 of this Act take effect July 1, 2025.