CSSB 229(FIN): "An Act relating to employment contributions, to the calculation of unemployment insurance benefits, and to the state training and employment program; and providing for an effective date."
00CS FOR SENATE BILL NO. 229(FIN) 01 "An Act relating to employment contributions, to the calculation of 02 unemployment insurance benefits, and to the state training and employment 03 program; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. FINDINGS. The legislature finds that 06 (1) an inadequate number of jobs exist in this state to meet the needs of those 07 seeking employment; 08 (2) many Alaskans are having difficulty finding jobs, especially in trying to 09 meet the changing technology needs in this state; 10 (3) employer and employee contributions paid into the unemployment 11 insurance system are used for payment of compensation to unemployed workers and allocation 12 of a small portion of employment contributions paid by employees would provide money to 13 develop a state training and employment program to meet the training needs of Alaskans; 14 (4) a state training and employment program would
01 (A) help prevent future claims against unemployment benefits; 02 (B) foster new jobs by encouraging businesses to locate in the state due 03 to availability of a skilled labor force and by minimizing employers' unemployment 04 costs; and 05 (C) increase training opportunities to those workers severely affected 06 by the fluctuations in the state economy or technological changes in the workplace in 07 the state; 08 (5) it would be beneficial to the state for state training and employment 09 programs funded by the state training and employment program to supplement, but not to 10 displace, programs funded by money available to a training entity for public or private 11 training, and not to replace, parallel, compete with, or duplicate existing federally approved, 12 jointly administered apprenticeship and training programs; 13 (6) it would be beneficial to the state to make the state training and 14 employment program a permanent state program to benefit Alaska workers, businesses, and 15 industry. 16 * Sec. 2. AS 23.15 is amended by adding new sections to read: 17 ARTICLE 4A. STATE TRAINING AND EMPLOYMENT PROGRAM. 18 Sec. 23.15.620. STATE TRAINING AND EMPLOYMENT PROGRAM. 19 There is created in the department a program to finance and award grants to 20 employment assistance and training entities. Employment assistance and training 21 entities shall give appropriate state agencies full access to accounting records 22 concerning grants received to assure compliance with program standards. 23 Sec. 23.15.625. EMPLOYMENT ASSISTANCE AND TRAINING 24 PROGRAM ACCOUNT. The employment assistance and training program account 25 is established in the general fund. The commissioner of administration shall separately 26 account for money collected under AS 23.15.630 that the department deposits in the 27 general fund. The annual estimated balance in the account may be appropriated by the 28 legislature to the department to implement AS 23.15.620 - 23.15.660. The legislature 29 may appropriate the lapsing balance of the account to the unemployment compensation 30 fund established in AS 23.20.130. 31 Sec. 23.15.630. SPECIAL EMPLOYEE UNEMPLOYMENT CREDIT AND
01 CONTRIBUTIONS FOR PROGRAM. (a) In the manner provided in AS 23.20, the 02 department shall collect from each employee an amount equal to one-tenth of one 03 percent of the wages, as set out in AS 23.20.175, on which the employee is required 04 to make contributions under AS 23.20.290(d). The department shall remit to the 05 Department of Revenue, in accordance with AS 37.10.050, money collected under this 06 subsection. 07 (b) Notwithstanding AS 23.20.290(d), the department shall credit each 08 employee with an amount equal to the amount collected from the employee under (a) 09 of this section against unemployment contributions owed by the employee under 10 AS 23.20. 11 (c) The department shall assess and collect, under AS 23.20.185 - 23.20.275, 12 interest and penalties for delinquent reports and payments due under this section. 13 Interest and penalties collected shall be handled in accordance with AS 23.20.130(d). 14 Sec. 23.15.635. PEOPLE TO BE SERVED. Within the limits of its grant, an 15 employment assistance and training entity receiving a grant under AS 23.15.651 shall 16 provide services set out in AS 23.15.640 to state residents who, immediately before 17 beginning training or receiving benefits under a grant financed by this program, 18 (1) are unemployed and 19 (A) are receiving unemployment insurance benefits; or 20 (B) have exhausted the right to unemployment insurance 21 benefits within the past three years; 22 (2) are employed, but liable to be displaced within the next six months 23 because of 24 (A) reductions in overall employment within a business; 25 (B) elimination of the worker's current job; or 26 (C) a change in conditions of employment requiring that, to 27 remain employed, the employee must learn substantially different skills that the 28 employee does not now possess; or 29 (3) have worked in a position covered by AS 23.20 and are not 30 currently eligible for unemployment insurance benefits because 31 (A) their employment has been seasonal, temporary, part-time,
01 or marginal; 02 (B) their qualifying wages are insufficient because of limited 03 job opportunity; or 04 (C) they are employed but, because they are underemployed, 05 they are in need of employment assistance and training to obtain full 06 employment. 07 Sec. 23.15.640. SERVICES FOR ELIGIBLE PEOPLE. Subject to the limits 08 of its grant, an entity receiving a grant under AS 23.15.651 shall provide one or more 09 program elements. The program elements include 10 (1) industry-specific training; 11 (2) on-the-job training; 12 (3) institutional or classroom job-linked training; 13 (4) support services, including allowances; 14 (5) relocation assistance; or 15 (6) provisions of necessary tools, work-related clothing, safety gear, or 16 other necessities to obtain or retain employment. 17 Sec. 23.15.645. DUTIES AND POWERS OF THE DEPARTMENT. (a) The 18 department shall award a grant to the council to 19 (1) administer a state training and employment program; and 20 (2) award grants to qualified entities. 21 (b) When a grant is awarded to the council, the department shall annually 22 provide to the council a priority list of targeted projects or services, based on 23 unemployment statistics, unemployment insurance claims, occupational and industrial 24 projections, availability of other training and employment programs, and other relevant 25 data. The department shall also provide annually to the council a priority list of 26 criteria for eligibility to maximize services to those people most in need of training 27 under AS 23.15.620 - 23.15.660. In developing the priority list for targeted projects 28 and services, the department shall solicit comments from the Department of 29 Community and Regional Affairs, Department of Education, Department of Commerce 30 and Economic Development, University of Alaska, organized labor, the council, and 31 the administrative entities of the substate service delivery areas established for the
01 council. The department shall give preference to projects and services that train 02 individuals in industries identified in the resident hire report required under 03 AS 36.10.130 as employing a disproportionate percentage of nonresident individuals. 04 (c) The department may adopt regulations necessary to implement this chapter. 05 (d) The council shall establish grant administration requirements including 06 accounting procedures that apply to qualified entities and their grantees. 07 (e) In making a grant under this section, the council shall require that the 08 qualified entity and grantees of the qualified entity limit the amount of the grant 09 proceeds spent on administration so that the total spent on administration from the 10 proceeds of the employment assistance and training program account, including 11 amounts spent by the council itself, does not exceed 20 percent. The amount collected 12 and remitted in accordance with the shared cost requirements of the federal Office of 13 Management and Budget Circular A-87 entitled "Cost Principles for State and Local 14 Governments" is not considered an amount spent on administration under this 15 subsection. 16 Sec. 23.15.651. DUTIES OF ALASKA HUMAN RESOURCE INVESTMENT 17 COUNCIL; GRANTS; ELIGIBLE ENTITIES. (a) In implementing this program 18 under a grant received under AS 23.15.645, and subject to the limit of its grant the 19 council shall award grants, in accordance with the priority list established by the 20 department under AS 23.15.645(b) to employment assistance and training entities. A 21 training entity is eligible for a grant under this section if the entity meets program 22 requirements and can demonstrate that 23 (1) its accounting systems include controls adequate to check the 24 accuracy and reliability of accounting data, promote operating efficiency, and assure 25 compliance with program requirements and generally accepted accounting principles; 26 and 27 (2) its activities do not replace or compete in any way with a federally 28 approved, jointly administered apprenticeship program or any other existing training 29 programs. 30 (b) The council may not award a grant if the grant would displace money 31 available through existing public or private training programs.
01 (c) To provide administration of the program, the council may use the 02 administrative entities of the substate service delivery areas. 03 (d) The council shall annually provide the department with financial and 04 performance reporting on the activities of the program and recommendations 05 concerning continuation of funding. 06 Sec. 23.15.660. DEFINITIONS. In AS 23.15.620 - 23.15.660, 07 (1) "council" means the Alaska Human Resource Investment Council 08 established in AS 44.19.620; 09 (2) "program" means the state training and employment program 10 established in AS 23.15.620 - 23.15.660; and 11 (3) "substate service delivery areas" means those areas designated by 12 the governor under 29 U.S.C. 1532. 13 * Sec. 3. AS 23.20.290(c) is amended to read: 14 (c) Beginning January 1, 1997 [JANUARY 1, 1981], the rate of contributions 15 for each employer is 80 [82] percent of the average benefit cost rate multiplied by the 16 employer's experience factor set out in column C of the table in this subsection 17 opposite the employer's applicable rate class set out in column A plus the fund 18 solvency adjustment required under (f) of this section. However, the rate of 19 contributions for an employer may not be less than one percent or more than six and 20 one-half percent. The rate of contributions for an employer in rate class 21 may not 21 be less than 5.4 percent. The rate of contributions for an employer must be rounded 22 to the nearest 1/100th [ONE-HUNDREDTH] of one percent. 23 COLUMN ACOLUMN B COLUMN C 24 Rate ClassCumulative Experience 25 Ratable Payroll Factor 26 at least but less than 27 (percent) (percent) 28 1 5 .40 29 2 5 10 .45 30 3 10 15 .50 31 5 20 25 .60
01 6 25 30 .65 02 7 30 35 .70 03 8 35 40 .80 04 9 40 45 .90 05 10 45 50 1.00 06 11 50 55 1.00 07 12 55 60 1.10 08 13 60 65 1.20 09 14 65 70 1.30 10 15 70 75 1.35 11 16 75 80 1.40 12 17 80 85 1.45 13 18 85 90 1.50 14 19 90 95 1.55 15 20 95 99.99 1.60 16 21 99.99 1.65. 17 * Sec. 4. AS 23.20.290(d) is amended to read: 18 (d) Beginning January 1, 1997 [JANUARY 1, 1981], and for each succeeding 19 year thereafter, the rate of contributions payable by each employee of an employer 20 who is subject to AS 23.20.165 is 20 [18] percent of the average benefit cost rate as 21 determined in (e) of this section rounded to the nearest 1/100th [ONE-TENTH] of one 22 percent. However, the rate of contributions for an employee may not be less than one- 23 half percent or more than one percent. 24 * Sec. 5. AS 23.20.350(d) is amended to read: 25 (d) An individual who is eligible under (a) of this section is entitled to receive 26 the weekly benefit amount set out in column (B) of the table in this subsection that is 27 opposite the amount set out in column (A) of the individual's base period wages 28 determined under (c) of this section: 29 (A) (B) 30 Base Period Wages Weekly Benefit 31 Amount
01 At least But less than 02 0 1,000 $ 0 03 1,000 1,250 44 04 1,250 1,500 46 05 1,500 1,750 48 06 1,750 2,000 50 07 2,000 2,250 52 08 2,250 2,500 54 09 2,500 2,750 56 10 2,750 3,000 58 11 3,000 3,250 60 12 3,250 3,500 62 13 3,500 3,750 64 14 3,750 4,000 66 15 4,000 4,250 68 16 4,250 4,500 70 17 4,500 4,750 72 18 4,750 5,000 74 19 5,000 5,250 76 20 5,250 5,500 78 21 5,500 5,750 80 22 5,750 6,000 82 23 6,000 6,250 84 24 6,250 6,500 86 25 6,500 6,750 88 26 6,750 7,000 90 27 7,000 7,250 92 28 7,250 7,500 94 29 7,500 7,750 96 30 7,750 8,000 98 31 8,000 8,250 100
01 8,250 8,500 102 02 8,500 8,750 104 03 8,750 9,000 106 04 9,000 9,250 108 05 9,250 9,500 110 06 9,500 9,750 112 07 9,750 10,000 114 08 10,000 10,250 116 09 10,250 10,500 118 10 10,500 10,750 120 11 10,750 11,000 122 12 11,000 11,250 124 13 11,250 11,500 126 14 11,500 11,750 128 15 11,750 12,000 130 16 12,000 12,250 132 17 12,250 12,500 134 18 12,500 12,750 136 19 12,750 13,000 138 20 13,000 13,250 140 21 13,250 13,500 142 22 13,500 13,750 144 23 13,750 14,000 146 24 14,000 14,250 148 25 14,250 14,500 150 26 14,500 14,750 152 27 14,750 15,000 154 28 15,000 15,250 156 29 15,250 15,500 158 30 15,500 15,750 160 31 15,750 16,000 162
01 16,000 16,250 164 02 16,250 16,500 166 03 16,500 16,750 168 04 16,750 17,000 170 05 17,000 17,250 172 06 17,250 17,500 174 07 17,500 17,750 176 08 17,750 18,000 178 09 18,000 18,250 180 10 18,250 18,500 182 11 18,500 18,750 184 12 18,750 19,000 186 13 19,000 19,250 188 14 19,250 19,500 190 15 19,500 19,750 192 16 19,750 20,000 194 17 20,000 20,250 196 18 20,250 20,500 198 19 20,500 20,750 200 20 20,750 21,000 202 21 21,000 21,250 204 22 21,250 21,500 206 23 21,500 21,750 208 24 21,750 22,000 210 25 22,000 22,250 212 26 22,250 22,500 214 [212] 27 22,500 22,750 216 28 22,750 23,000 218 29 23,000 23,250 220 30 23,250 23,500 222 31 23,500 23,750 224
01 23,750 24,000 226 02 24,000 24,250 228 03 24,250 24,500 230 04 24,500 24,750 232 05 24,750 25,000 234 06 25,000 25,250 236 07 25,250 25,500 238 08 25,500 25,750 240 09 25,750 26,000 242 10 26,000 26,250 244 11 26,250 26,500 246 12 26,500 26,750 248 13 26,750 248. 14 * Sec. 6. AS 23.15.620, 23.15.625, 23.15.630, 23.15.635, 23.15.640, 23.15.645, 23.15.651, 15 and 23.15.660 are repealed June 30, 1998. 16 * Sec. 7. Sections 3 - 5 of this Act apply to benefit years for unemployment insurance 17 beginning on or after January 1, 1997. 18 * Sec. 8. Sections 1 and 2 of this Act take effect July 1, 1996. 19 * Sec. 9. Sections 3 - 5 and 7 of this Act take effect January 1, 1997.