00 CS FOR SENATE BILL NO. 217(L&C) 01 "An Act increasing contributions to the Department of Labor and Workforce 02 Development for the state training and employment program; relating to employer and 03 employee contributions to the unemployment compensation fund; establishing an 04 employer contribution for the state training and employment program; relating to 05 unemployment benefits; relating to the qualifications for instructors at the Alaska 06 Vocational Technical Center; relating to employment security contributions for certain 07 sports officials; relating to exemptions from the Alaska Workers' Compensation Act; 08 relating to employee unemployment tax credits; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10  * Section 1. AS 12.62.400(a) is amended by adding a new paragraph to read: 11 (26) a position as an instructor at the Alaska Vocational Technical 12 Center. 01  * Sec. 2. AS 23.15.630(a) is amended to read: 02 (a) In the manner provided in AS 23.20, the department shall collect from 03 each employee an amount equal to .20 [ONE-TENTH OF ONE] percent of the wages, 04 as set out in AS 23.20.175, on which the employee is required to make contributions 05 under AS 23.20.290(d). The department shall remit to the Department of Revenue, in 06 accordance with AS 37.10.050, money collected under this subsection. 07  * Sec. 3. AS 23.15.630(a), as amended by sec. 2 of this Act, is amended to read: 08 (a) In the manner provided in AS 23.20, the department shall collect from 09 each employee an amount equal to .20 percent of the wages, as set out in 10 AS 23.20.175 [, ON WHICH THE EMPLOYEE IS REQUIRED TO MAKE 11 CONTRIBUTIONS UNDER AS 23.20.290(d)]. The department shall remit to the 12 Department of Revenue, in accordance with AS 37.10.050, money collected under this 13 subsection. 14  * Sec. 4. AS 23.15.630 is amended by adding new subsections to read: 15 (d) In the manner provided in AS 23.20, the department shall collect from 16 each employer an amount equal to 0.4 percent of the wages, as set out in 17 AS 23.20.175, on which the employer is required to make contributions under 18 AS 23.20.290(c). The department shall remit to the Department of Revenue, in 19 accordance with AS 37.10.050, money collected under this subsection. The legislature 20 may appropriate the revenue collected under this subsection to the employment 21 assistance and training program account established in AS 23.15.625. 22 (e) The department shall credit against the amount owed by an employer under 23 (d) of this section an amount equal to the contributions paid by the employer under 24 AS 23.20.290(c). If the amount of the credit equals or exceeds the amount owed under 25 (d) of this section, the employer's liability under (d) of this section is zero. 26  * Sec. 5. AS 23.15.835(a) is amended to read: 27 (a) In the manner provided in AS 23.20 and for the benefit of the program, the 28 department shall collect from each employee an amount equal to .25 percent of the 29 wages, as set out in AS 23.20.175 [, ON WHICH THE EMPLOYEE IS REQUIRED 30 TO MAKE CONTRIBUTIONS UNDER AS 23.20.290(d)]. The department shall 31 remit to the Department of Revenue, in accordance with AS 37.10.050, money 01 collected under this subsection. 02  * Sec. 6. AS 23.15 is amended by adding a new section to read: 03 Sec. 23.15.845. Background checks for Alaska Vocational Technical  04 Center instructors. An individual who serves as an instructor at the Alaska 05 Vocational Technical Center shall submit to the Alaska Vocational Technical Center 06 the individual's fingerprints and provide the fees required by the Department of Public 07 Safety under AS 12.62.160 for criminal justice information and a national criminal 08 history record check. The Alaska Vocational Technical Center shall forward the 09 fingerprints and fees to the Department of Public Safety to obtain a report of criminal 10 justice information under AS 12.62 and a national criminal history record check under 11 AS 12.62.400 for the purpose of determining whether the individual is qualified to 12 serve as an instructor. 13  * Sec. 7. AS 23.20.135(b) is amended to read: 14 (b) The department, or a designee of the department, shall immediately 15 deposit, upon receipt, all money payable to the fund in the clearing account. Refunds 16 of contributions erroneously collected and payable under AS 23.20.225 and 17 23.20.526(a)(11) may be paid from the clearing account in the same manner, or from 18 the training and building fund. Interest and penalty payments may not be refunded 19 from the unemployment compensation fund. After clearance, all money in the clearing 20 account [, EXCEPT FOR THAT PORTION OF EMPLOYEE CONTRIBUTIONS 21 UNDER AS 23.20.290(d) USED TO PAY INTEREST ON ADVANCES RECEIVED 22 UNDER AS 23.20.140,] shall be immediately deposited with the United States 23 Secretary of the Treasury to the credit of the account of this state in the unemployment 24 trust fund established and maintained under 42 U.S.C. 1104 (sec. 904, Social Security 25 Act), as amended. 26  * Sec. 8. AS 23.20.290(c) is amended to read: 27 (c) The rate of contributions for each employer is a percentage of the average 28 benefit cost rate multiplied by the employer's experience factor set out in column C of 29 the table in this subsection opposite the employer's applicable rate class set out in 30 column A plus the fund solvency adjustment surcharge required under (f) of this 31 section. That percentage is 76 percent beginning January 1, 2009, [AND] 73 percent 01 beginning January 1, 2010, and 100 percent beginning January 1, 2027. 02 Notwithstanding any other provision of this chapter, including the application of  03 credits [HOWEVER], the rate of contributions for an employer 04 (1) may not exceed [BE LESS THAN ONE PERCENT OR MORE 05 THAN] six and one-half percent;  06 (2) may not be less than zero percent;  07 (3) with less than four quarters of experience may not be less than  08 one percent;  09 (4) [. THE RATE OF CONTRIBUTIONS FOR AN EMPLOYER] in 10 rate class 21 may not be less than 5.4 percent; and  11 (5) [. THE RATE OF CONTRIBUTIONS FOR AN EMPLOYER] 12 must be rounded to the nearest 1/100th of one percent. 13 COLUMN B COLUMN C 14 COLUMN A Cumulative Experience 15 Rate Class Ratable Payroll Factor 16 at least but less than 17 (percent) (percent) 18 1 5 .40 19 2 5 10 .45 20 3 10 15 .50 21 4 15 20 .55 22 5 20 25 .60 23 6 25 30 .65 24 7 30 35 .70 25 8 35 40 .80 26 9 40 45 .90 27 10 45 50 1.00 28 11 50 55 1.00 29 12 55 60 1.10 30 13 60 65 1.20 31 14 65 70 1.30 01 15 70 75 1.35 02 16 75 80 1.40 03 17 80 85 1.45 04 18 85 90 1.50 05 19 90 95 1.55 06 20 95 99.99 1.60 07 21 99.99 1.65. 08  * Sec. 9. AS 23.20.350(d) is amended to read: 09 (d) An individual who is eligible under (a) of this section is entitled to receive 10 the weekly benefit amount set out in column (B) of the table in this subsection that is 11 opposite the amount set out in column (A) of the individual's base period wages 12 determined under (c) of this section: 13 (A) (B) 14 Base Period Wages Weekly Benefit 15 Amount 16 At least But less than 17 0 2,500 $ 0 18 2,500 2,750 56 19 2,750 3,000 58 20 3,000 3,250 60 21 3,250 3,500 62 22 3,500 3,750 64 23 3,750 4,000 66 24 4,000 4,250 68 25 4,250 4,500 70 26 4,500 4,750 72 27 4,750 5,000 74 28 5,000 5,250 76 29 5,250 5,500 78 30 5,500 5,750 80 31 5,750 6,000 82 01 6,000 6,250 84 02 6,250 6,500 86 03 6,500 6,750 88 04 6,750 7,000 90 05 7,000 7,250 92 06 7,250 7,500 94 07 7,500 7,750 96 08 7,750 8,000 98 09 8,000 8,250 100 10 8,250 8,500 102 11 8,500 8,750 104 12 8,750 9,000 106 13 9,000 9,250 108 14 9,250 9,500 110 15 9,500 9,750 112 16 9,750 10,000 114 17 10,000 10,250 116 18 10,250 10,500 118 19 10,500 10,750 120 20 10,750 11,000 122 21 11,000 11,250 124 22 11,250 11,500 126 23 11,500 11,750 128 24 11,750 12,000 130 25 12,000 12,250 132 26 12,250 12,500 134 27 12,500 12,750 136 28 12,750 13,000 138 29 13,000 13,250 140 30 13,250 13,500 142 31 13,500 13,750 144 01 13,750 14,000 146 02 14,000 14,250 148 03 14,250 14,500 150 04 14,500 14,750 152 05 14,750 15,000 154 06 15,000 15,250 156 07 15,250 15,500 158 08 15,500 15,750 160 09 15,750 16,000 162 10 16,000 16,250 164 11 16,250 16,500 166 12 16,500 16,750 168 13 16,750 17,000 170 14 17,000 17,250 172 15 17,250 17,500 174 16 17,500 17,750 176 17 17,750 18,000 178 18 18,000 18,250 180 19 18,250 18,500 182 20 18,500 18,750 184 21 18,750 19,000 186 22 19,000 19,250 188 23 19,250 19,500 190 24 19,500 19,750 192 25 19,750 20,000 194 26 20,000 20,250 196 27 20,250 20,500 198 28 20,500 20,750 200 29 20,750 21,000 202 30 21,000 21,250 204 31 21,250 21,500 207 [206] 01 21,500 21,750 209 [208] 02 21,750 22,000 212 [210] 03 22,000 22,250 214 [212] 04 22,250 22,500 216 [214] 05 22,500 22,750 219 [216] 06 22,750 23,000 221 [218] 07 23,000 23,250 224 [220] 08 23,250 23,500 226 [222] 09 23,500 23,750 228 [224] 10 23,750 24,000 231 [226] 11 24,000 24,250 233 [228] 12 24,250 24,500 236 [230] 13 24,500 24,750 238 [232] 14 24,750 25,000 240 [234] 15 25,000 25,250 243 [236] 16 25,250 25,500 245 [238] 17 25,500 25,750 248 [240] 18 25,750 26,000 250 [242] 19 26,000 26,250 252 [244] 20 26,250 26,500 255 [246] 21 26,500 26,750 257 [248] 22 26,750 27,000 260 [250] 23 27,000 27,250 262 [252] 24 27,250 27,500 264 [254] 25 27,500 27,750 267 [256] 26 27,750 28,000 269 [258] 27 28,000 28,250 272 [260] 28 28,250 28,500 274 [262] 29 28,500 28,750 276 [264] 30 28,750 29,000 279 [266] 31 29,000 29,250 281 [268] 01 29,250 29,500 284 [270] 02 29,500 29,750 286 [272] 03 29,750 30,000 288 [274] 04 30,000 30,250 291 [276] 05 30,250 30,500 293 [278] 06 30,500 30,750 296 [280] 07 30,750 31,000 298 [282] 08 31,000 31,250 300 [284] 09 31,250 31,500 303 [286] 10 31,500 31,750 305 [288] 11 31,750 32,000 308 [290] 12 32,000 32,250 310 [292] 13 32,250 32,500 313 [294] 14 32,500 32,750 315 [296] 15 32,750 33,000 317 [298] 16 33,000 33,250 320 [300] 17 33,250 33,500 322 [302] 18 33,500 33,750 325 [304] 19 33,750 34,000 327 [306] 20 34,000 34,250 329 [308] 21 34,250 34,500 332 [310] 22 34,500 34,750 334 [312] 23 34,750 35,000 337 [314] 24 35,000 35,250 339 [316] 25 35,250 35,500 341 [318] 26 35,500 35,750 344 [320] 27 35,750 36,000 346 [322] 28 36,000 36,250 349 [324] 29 36,250 36,500 351 [326] 30 36,500 36,750 353 [328] 31 36,750 37,000 356 [330] 01 37,000 37,250 358 [332] 02 37,250 37,500 361 [334] 03 37,500 37,750 363 [336] 04 37,750 38,000 365 [338] 05 38,000 38,250 368 [340] 06 38,250 38,500 370 [342] 07 38,500 38,750 373 [344] 08 38,750 39,000 375 [346] 09 39,000 39,250 377 [348] 10 39,250 39,500 380 [350] 11 39,500 39,750 382 [352] 12 39,750 40,000 385 [354] 13 40,000 40,250 387 [356] 14 40,250 40,500 389 [358] 15 40,500 40,750 392 [360] 16 40,750 41,000 394 [362] 17 41,000 41,250 397 [364] 18 41,250 41,500 399 [366] 19 41,500 41,750 401 [368] 20 41,750 42,000 404 [370] 21 42,000 42,250 406 22 42,250 42,500 409 23 42,500 42,750 411  24 42,750 43,000 413  25 43,000 43,250 416  26 43,250 43,500 418  27 43,500 43,750 421  28 43,750 44,000 423  29 44,000 44,250 425  30 44,250 44,500 428  31 44,500 44,750 430  01 44,750 45,000 433  02 45,000 45,250 435  03 45,250 45,500 438  04 45,500 45,750 440  05 45,750 46,000 442  06 46,000 46,250 445  07 46,250 46,500 447  08 46,500 46,750 450  09 46,750 47,000 452  10 47,000 47,250 454  11 47,250 47,500 457  12 47,500 47,750 459  13 47,750 48,000 462  14 48,000 48,250 464  15 48,250 48,500 466  16 48,500 48,750 469  17 48,750 49,000 470  18 49,000 470 [370]. 19  * Sec. 10. AS 23.20.350 is amended by adding a new subsection to read: 20 (h) On January 1 of each year, the department shall increase the maximum 21 base period wages in (d) of this section by a percentage equal to the percentage 22 increase in the base of contributions calculated under AS 23.20.175 in comparison to 23 the base contributions calculated for the prior year. The new base period wage amount 24 shall be rounded to the nearest $250. The department shall increase the corresponding 25 weekly benefit amount in (d) of this section by $2 for each $250 increase in base 26 period wages. The department may not decrease the base period wage amount of the 27 weekly benefit amount. 28  * Sec. 11. AS 23.20.526(a) is amended to read: 29 (a) In this chapter, unless the context otherwise requires, "employment" does 30 not include 31 (1) domestic service in a private home, except as provided in 01 AS 23.20.525(a)(13); 02 (2) newsboys' services in selling or distributing newspapers on the 03 street or from house to house; 04 (3) service not in the course of the employing unit's trade or business 05 performed in a calendar quarter by an individual, unless the cash remuneration paid 06 for the service is $50 or more and the service is performed by an individual who is 07 regularly employed by the employing unit to perform the service; an individual is here 08 considered to be regularly employed to perform service not in the course of an 09 employing unit's trade or business during a calendar quarter only if the individual 10 performs the service for some portion of the day on each of 24 days during the quarter 11 or during the preceding calendar quarter; 12 (4) service performed by an individual in the employ of the 13 individual's 14 (A) son, daughter, or spouse; 15 (B) parent or legal guardian if the individual was under the age 16 of 21 years and a full-time student during eight of the last 12 months and 17 intends to resume full-time student status within the next four months; and 18 (C) mother or father if the service is performed by a child under 19 the age of 18; 20 (5) service with respect to which unemployment insurance is payable 21 under an unemployment insurance program established by an Act of Congress; 22 (6) service performed in the employ of a foreign government including 23 service as a consular or other officer or employee or a nondiplomatic representative; 24 (7) service performed in the employ of an instrumentality wholly 25 owned by a foreign government if 26 (A) the service is of a character similar to that performed in 27 foreign countries by employees of the United States government or its 28 instrumentalities; and 29 (B) the department finds that the United States Secretary of 30 State has certified to the United States Secretary of the Treasury that the 31 foreign government, with respect to whose instrumentality exemption is 01 claimed, grants an equivalent exemption with respect to similar service 02 performed in the foreign country by employees of the United States 03 government and its instrumentalities; 04 (8) service performed by an insurance agent, insurance solicitor, real 05 estate broker, real estate salesperson, or securities salesperson to the extent the person 06 is compensated by commission, unless the service is required to be covered under the 07 Federal Unemployment Tax Act, as amended; 08 (9) notwithstanding AS 23.20.525(a)(9), service performed by an 09 officer or member of the crew of an American vessel on or in connection with the 10 vessel, if the operating office, from which the operations of the vessel operating on 11 navigable waters inside or inside and outside the United States are ordinarily and 12 regularly supervised, managed, directed, and controlled, is outside this state; 13 (10) service performed on or in connection with a vessel not an 14 American vessel by an individual if the individual performed service on and in 15 connection with the vessel when outside the United States; 16 (11) service performed in the employ of the United States government 17 or an instrumentality of the United States exempt under the Constitution of the United 18 States from the contributions imposed by this chapter, except that to the extent that the 19 Congress of the United States permits states to require an instrumentality of the United 20 States to make payments into an unemployment fund under a state employment 21 security law, all of the provisions of this chapter apply to the instrumentalities, and to 22 service performed for the instrumentalities in the same manner, to the same extent, and 23 on the same terms as to all other employers, employing units, individuals, and service; 24 however, if this state is not certified for any year by the United States Secretary of 25 Labor under 26 U.S.C. 3304(c) (Federal Unemployment Tax Act, Internal Revenue 26 Code), the payments required of the instrumentalities with respect to the year shall be 27 refunded by the department from the fund in the same manner and within the same 28 period as is provided in AS 23.20.225 with respect to contributions erroneously 29 collected; 30 (12) service performed in the employ of another state, or political 31 subdivision of another state, or an instrumentality of another state or political 01 subdivision that is wholly owned by another state or its political subdivision, or a 02 service performed in the employ of an instrumentality of another state or its political 03 subdivisions to the extent that the instrumentality is, with respect to the service, 04 exempt under the Constitution of the United States from the tax imposed by 26 U.S.C. 05 3301 (Federal Unemployment Tax Act, Internal Revenue Code); 06 (13) service performed in the employ of an international organization; 07 (14) service covered by an election approved by the agency charged 08 with the administration of any other state or federal employment security law, in 09 accordance with an arrangement under AS 23.20.090(a) during the effective period of 10 the election; 11 (15) service performed by an individual in agricultural labor, except as 12 provided in AS 23.20.525(a)(14); the term "agricultural labor" means remunerated 13 service 14 (A) on a farm, in the employ of any person in connection with 15 cultivating the soil, or in connection with raising or harvesting any agricultural 16 or horticultural commodity, including the raising, shearing, feeding, caring for, 17 training, and management of livestock, bees, poultry, and fur-bearing animals 18 and wildlife; 19 (B) in the employ of the owner or tenant or other operator of a 20 farm, in connection with the operation, management, conservation, 21 improvement, or maintenance of the farm and its tools and equipment, or in 22 salvaging timber or clearing land of brush and other debris left by a hurricane, 23 if the major part of the service is performed on a farm; 24 (C) in connection with the production or harvesting of any 25 commodity defined as an agricultural commodity in 12 U.S.C. 1141j (Sec. 26 15(g), Agricultural Marketing Act), as amended, or in connection with the 27 operation or maintenance of ditches, canals, reservoirs, or waterways, not 28 owned or operated for profit, used exclusively for supplying and storing water 29 for farming purposes; 30 (D) in the employ of the operator of a farm in handling, 31 planting, drying, packing, packaging, processing, freezing, grading, storing, or 01 delivering to storage or to market or to a carrier for transportation to market, in 02 its unmanufactured state, any agricultural or horticultural commodity; but only 03 if the operator produced more than one-half of the commodity with respect to 04 which the service is performed except as stated in (b) of this section; 05 (E) in the employ of a group of operators of farms, or a 06 cooperative organization of which the operators are members, in the 07 performance of service described in (D) of this paragraph, but only if the 08 operators produced more than one-half of the commodity with respect to which 09 the service is performed; 10 (F) on a farm operated for profit if the service is not in the 11 course of the employer's trade or business; 12 (16) service performed as a student nurse in the employ of a hospital or 13 a nurses' training school by an individual who is enrolled and is regularly attending 14 classes in a nurses' training school chartered or approved in accordance with the laws 15 of this state, and service performed as an intern in the employ of a hospital by an 16 individual who has completed a four-year course in a medical school chartered or 17 approved in accordance with the laws of this state, unless the service is required to be 18 covered under the Federal Unemployment Tax Act; 19 (17) service performed by an individual on a boat engaged in catching 20 fish or other forms of aquatic animal life under an arrangement with the owner or 21 operator of that boat under which 22 (A) that individual does not receive any cash remuneration 23 except as provided in (B) of this paragraph; 24 (B) that individual receives a share of the boat's, or the boats' in 25 the case of a fishing operation involving more than one boat, catch of fish or 26 other forms of aquatic animal life or a share of the proceeds from the sale of 27 that catch; and 28 (C) the amount of that individual's share depends on the 29 amount of the boat's, or the boats' in the case of a fishing operation involving 30 more than one boat, catch of fish or other forms of aquatic animal life; but only 31 if the operating crew of that boat, or each boat from which the individual 01 receives a share in the case of a fishing operation involving more than one 02 boat, is normally made up of fewer than 10 individuals; 03 (18) service performed as a prospective or impaneled juror in a court; 04 (19) service performed for a corporation by an employee of the 05 corporation if 06 (A) the corporation is incorporated under AS 10.06; 07 (B) the corporation is not a government corporation; and 08 (C) the employee is an executive officer of the corporation; 09 (20) service performed by an individual who drives a taxicab whose 10 compensation and written contractual arrangements are as described in 11 AS 23.10.055(a)(13); 12 (21) service of an individual who 13 (A) directly sells or solicits the sale of consumer products, for 14 resale or otherwise, personally to a prospective consumer in the home or 15 otherwise than in a permanent retail establishment; a sale or solicitation by 16 telephone, mail, other telecommunications method, or other nonpersonal 17 method does not satisfy the requirement of this subparagraph; 18 (B) is compensated solely by 19 (i) commissions on sales or other remuneration directly 20 related to sales or sales performance; or 21 (ii) a profit represented by the difference between the 22 wholesale cost of the product to the seller and the final sale price to the 23 consumer; and 24 (C) performs under a written contract with the person for whom 25 the service is performed that provides, notwithstanding AS 23.20.395(a), that 26 the individual is not an employee for purposes of this chapter or for federal or 27 state tax purposes; 28 (22) temporary services related to emergency oil spill training and 29 response activities by an individual described in (17) of this subsection; in this 30 paragraph, "temporary" means a period of less than seven continuous days; and 31 (23) service [VOLUNTEER WORK] performed by an independent  01 contractor [A PERSON ENGAGED ON A CONTRACT BASIS] as a sports official 02 at a sports event for which the competitors are not paid a wage or salary; however, the 03 exemption provided under this paragraph does not apply to a claim for benefits under 04 this chapter that is related to a sports event or competition sponsored by an employer 05 for whom the person making the claim normally performs work, including work as a 06 teacher, coach, or administrator, that is not sports official work; in this paragraph, 07 (A) "sports official" is a participant in a sports event or 08 competition whose participation is neutral with respect to who wins or loses, 09 including an umpire, referee, judge, scorekeeper, timekeeper, or organizer; 10 (B) "independent contractor" means a sports official  11 (i) working under a written contract between the  12 sports official and the party or association engaging the sports  13 official's services that specifically states the sports official is an  14 independent contractor;  15 (ii) who is paid based on a set fee for each game  16 officiated;  17 (iii) who is free under the terms of the contract to  18 accept or reject assignments of any game;  19 (iv) who is not limited to exclusively officiating with  20 the party engaging the services of the sports official 21 ["VOLUNTEER WORK" MEANS WORK FOR WHICH 22 COMPENSATION DOES NOT EXCEED $1,500 A YEAR AND IS 23 PAID ONLY TO DEFRAY OR REIMBURSE THE REASONABLE 24 FOOD, TRAVEL, AND INCIDENTAL EXPENSES THE PERSON 25 INCURS IN ORDER TO PERFORM THE WORK OR AS A RESULT 26 OF PERFORMING THE WORK]. 27  * Sec. 12. AS 23.30.240 is amended to read: 28 Sec. 23.30.240. Officers of corporations, municipal corporations, and  29 nonprofit corporations, and members of limited liability companies as employees.  30 (a) Except as provided in (b) of this section, an executive officer elected or appointed 31 and empowered in accordance with the charter and bylaws of a corporation; a  01 member, director, or principal officer of a cooperative organized under AS 10.15; 02 or a member of a limited liability company organized under AS 10.50 is not an 03 employee of the business entity under this chapter if the executive officer, principal  04 officer, director, or member owns at least 10 percent of the business entity. Except as 05 provided in (b) of this section, an executive officer of a municipal corporation or 06 charitable, religious, educational, or other nonprofit corporation is not an employee of 07 the corporation under this chapter. 08 (b) Any type of corporation, cooperative, or limited liability company may 09 bring an executive officer, principal officer, director, or a member exempted under 10 (a) of this section within the coverage of the business entity's insurance contract by 11 specifically including the executive officer or member in the contract of insurance. 12 The election to bring the executive officer, principal officer, director, or member 13 within the business entity's coverage continues in force for the period during which the 14 contract of insurance is in effect. During that period, an executive officer, principal  15 officer, director, or a member brought within the coverage of the insurance contract is 16 an employee of the business entity under this chapter. 17  * Sec. 13. AS 23.15.630(b), 23.15.835(b); and AS 23.20.290(d) are repealed. 18  * Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 APPLICABILITY. AS 23.15.630(a), as amended by sec. 2 of this Act, applies to 21 contracts entered into on or after the effective date of sec. 2 of this Act. 22  * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 23 read: 24 TRANSITION: BACKGROUND CHECKS. Notwithstanding AS 12.62.400(a)(26), 25 added by sec. 1 of this Act, and AS 23.15.845, added by sec. 6 of this Act, a person who, on 26 the day before the effective date of secs. 1 and 6 of this Act, is serving as an instructor at the 27 Alaska Vocational Technical Center may continue to serve as an instructor without obtaining 28 the criminal background check required under AS 23.15.845, added by sec. 6 of this Act, until 29 July 1, 2027. 30  * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 31 read: 01 STATE UNEMPLOYMENT INSURANCE LAW FEDERAL APPROVAL. To the 02 extent necessary to implement this Act, the Department of Labor and Workforce 03 Development shall submit for federal approval the changes to the unemployment insurance 04 laws of the state enacted by secs. 3 - 5, 7 - 11, and 13 of this Act. 05  * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 06 read: 07 CONDITIONAL EFFECT; NOTIFICATION. (a) Sections 3 - 5, 7 - 11, and 13 of this 08 Act take effect only if, on or before July 1, 2027, the United States Secretary of Labor 09 approves the change to the unemployment insurance laws of this state under 26 U.S.C. 3304 10 (Federal Unemployment Tax Act). 11 (b) The commissioner of labor and workforce development shall notify the revisor of 12 statutes in writing within 30 days after the United States Secretary of Labor approves or 13 denies the change to the unemployment insurance laws of this state. 14  * Sec. 18. If secs. 3 - 5, 7 - 11, and 13 of this Act take effect, they take effect on January 1, 15 2027, or the day after the United States Secretary of Labor approves the change to the 16 unemployment insurance laws of this state, whichever is later. 17  * Sec. 19. Section 16 of this Act takes effect immediately under AS 01.10.070(c). 18  * Sec. 20. Except as provided in secs. 18 and 19 of this Act, this Act takes effect January 1, 19 2027.