Enrolled HB 76: Relating to electronic filing of certain information with the Department of Labor and Workforce Development; relating to fund solvency adjustments, rate increase reduction, prohibition on the relief of certain charges, the unemployment trust fund account, and the offset of certain unemployment compensation debt under the Alaska Employment Security Act; relating to the definition of "covered unemployment compensation debt" in the Alaska Employment Security Act; and providing for an effective date.
00Enrolled HB 76 01 Relating to electronic filing of certain information with the Department of Labor and 02 Workforce Development; relating to fund solvency adjustments, rate increase reduction, 03 prohibition on the relief of certain charges, the unemployment trust fund account, and the 04 offset of certain unemployment compensation debt under the Alaska Employment Security 05 Act; relating to the definition of "covered unemployment compensation debt" in the Alaska 06 Employment Security Act; and providing for an effective date. 07 _______________ 08 * Section 1. AS 23.05 is amended by adding a new section to read: 09 Sec. 23.05.055. Electronic filing. Notwithstanding any contrary provision of 10 the law, if the commissioner determines by order that it is in the public interest, the 11 commissioner may authorize electronic filing of certain information with the 12 department in a format prescribed by the department as an additional means of filing
01 under this title. If the commissioner authorizes electronic filing, the department shall 02 consider the electronic filing as equivalent to paper filing for purposes of compliance 03 with other requirements of this title. Electronic filings authorized under this section are 04 equivalent to paper filings for the purposes of civil or criminal penalties for violations 05 of this title or AS 11. 06 * Sec. 2. AS 23.20 is amended by adding a new section to read: 07 Sec. 23.20.021. Certain appropriations to the fund. In accordance with 08 AS 37.07 (Executive Budget Act), the legislature may appropriate money to the fund. 09 * Sec. 3. AS 23.20 is amended by adding a new section to article 3 to read: 10 Sec. 23.20.279. Prohibition on relief of certain charges to an employer's 11 account. (a) An employer's account may not be relieved of charges relating to a 12 payment that was made erroneously from the unemployment trust fund account 13 (AS 23.20.135(a)) if the department determines that 14 (1) the erroneous payment was made because the employer or an agent 15 of the employer was at fault for failing to respond timely or adequately to a 16 documented request from the department for information relating to the claim for 17 unemployment compensation; and 18 (2) the employer or an agent of the employer has established a pattern 19 of failing to respond timely or adequately to requests under (1) of this subsection. 20 (b) In this section, 21 (1) "erroneous payment" means a payment that, but for the failure by 22 the employer or an agent of the employer with respect to the claim for unemployment 23 compensation, would not have been made; 24 (2) "pattern of failing" means repeated documented failure by the 25 employer or the agent of the employer to respond, taking into consideration the 26 number of instances of failure in relation to the total volume of requests; however, an 27 employer or an agent of the employer that fails to respond as described in (a)(2) of this 28 section may not be determined to have engaged in a pattern of failure if the number of 29 failures during the year before the request is made is fewer than two or the percentage 30 of failures is less than two percent. 31 * Sec. 4. AS 23.20.290(c) is amended to read:
01 (c) The rate of contributions for each employer is a percentage of the average 02 benefit cost rate multiplied by the employer's experience factor set out in column C of 03 the table in this subsection opposite the employer's applicable rate class set out in 04 column A plus the fund solvency adjustment surcharge required under (f) of this 05 section. That percentage is 76 percent beginning January 1, 2009, and 73 percent 06 beginning January 1, 2010. However, the rate of contributions for an employer may 07 not be less than one percent or more than six and one-half percent. The rate of 08 contributions for an employer in rate class 21 may not be less than 5.4 percent. The 09 rate of contributions for an employer must be rounded to the nearest 1/100th of one 10 percent. 11 COLUMN B COLUMN C 12 COLUMN A Cumulative Experience 13 Rate Class Ratable Payroll Factor 14 at least but less than 15 (percent) (percent) 16 1 5 .40 17 2 5 10 .45 18 3 10 15 .50 19 4 15 20 .55 20 5 20 25 .60 21 6 25 30 .65 22 7 30 35 .70 23 8 35 40 .80 24 9 40 45 .90 25 10 45 50 1.00 26 11 50 55 1.00 27 12 55 60 1.10 28 13 60 65 1.20 29 14 65 70 1.30 30 15 70 75 1.35 31 16 75 80 1.40
01 17 80 85 1.45 02 18 85 90 1.50 03 19 90 95 1.55 04 20 95 99.99 1.60 05 21 99.99 1.65. 06 * Sec. 5. AS 23.20.290(f) is repealed and reenacted to read: 07 (f) An employer shall pay a fund solvency adjustment surcharge if the reserve 08 rate is less than three percent. The surcharge is a percentage equal to the difference 09 between three percent and the reserve rate, rounded to the nearest 1/100 of one 10 percent. An employer shall receive a fund solvency adjustment credit if the reserve 11 rate is greater than 3.3 percent. The credit is a percentage equal to the difference 12 between 3.3 percent and the reserve rate rounded to the nearest 1/100 of one percent. 13 The solvency surcharge may not be greater than 1.1 percent, and the solvency credit 14 may not be greater than 0.4 percent. However, an employer's fund solvency 15 adjustment surcharge may not increase more than 0.3 percent from one year to the 16 next year. 17 * Sec. 6. AS 23.20 is amended by adding a new section to read: 18 Sec. 23.20.291. Rate increase reductions. (a) When the most current average 19 high cost multiple published by the United States Department of Labor, Employment 20 and Training Administration, is 0.8 or above on September 30 in the year preceding 21 the year for which rates are being calculated, the commissioner shall consult with the 22 actuary in the department regarding the expected unemployment rate for the next tax 23 year, the expected number and amount of state funds needed to pay claims for state- 24 funded benefits for the next tax year, and the expected amount of state tax revenue. 25 Based on the actuary's advice and any other relevant information, the commissioner 26 may suspend, in whole or in part, any unemployment rate of contribution increases 27 that would have occurred for that year under the calculation of the rate of 28 contributions described in AS 23.20.290. If an increase of the rate of contribution 29 calculated under AS 23.20.290 is suspended, in whole or in part, the calculation of the 30 fund solvency adjustment surcharge as described in AS 23.20.290(f) for the 31 subsequent year must refer to the results of the last rate of contribution calculation for
01 which the increase was not suspended, in whole or in part, when determining the level 02 from which the fund solvency adjustment may not increase by more than 0.3 percent. 03 (b) In this section, "average high cost multiple" has the meaning given in 20 04 C.F.R. 606.3. 05 * Sec. 7. AS 23.20.390(f) is amended to read: 06 (f) In addition to the liability under (a) of this section for the amount of 07 benefits improperly paid, an individual who is disqualified from receipt of benefits 08 under AS 23.20.387 is liable to the department for a penalty in an amount equal to 50 09 percent of the benefits that were obtained by knowingly making a false statement or 10 misrepresenting a material fact, or knowingly failing to report a material fact, with the 11 intent to obtain or increase benefits under this chapter. [THE DEPARTMENT MAY, 12 UNDER REGULATIONS ADOPTED UNDER THIS CHAPTER, WAIVE THE 13 COLLECTION OF A PENALTY UNDER THIS SECTION.] The department shall 14 deposit into the unemployment trust fund account (AS 23.20.135(a)) a minimum 15 of 30 percent of the penalties collected because of benefits that were obtained by 16 knowingly making a false statement or misrepresenting a material fact, or 17 knowingly failing to report a material fact, with the intent to obtain or increase 18 benefits under this chapter [GENERAL FUND THE PENALTY THAT IT 19 COLLECTS]. 20 * Sec. 8. AS 23.20 is amended by adding a new section to read: 21 Sec. 23.20.486. Participation in the federal offset program. In addition to 22 any remedies authorized by this chapter, the department may offset any covered 23 unemployment compensation debt against a claimant's federal income tax refund in 24 accordance with 26 U.S.C. 6402. 25 * Sec. 9. AS 23.20.520 is amended by adding a new paragraph to read: 26 (23) "covered unemployment compensation debt" means 27 (A) a past due debt for erroneous payment of unemployment 28 compensation under this chapter because of fraud or the person's failure to 29 report earnings that has become final under this chapter and that remains 30 uncollected; 31 (B) contributions due to the unemployment trust fund account
01 (AS 23.20.135(a)) for which a person is liable and that remain uncollected; and 02 (C) any penalties and interest assessed on the debt. 03 * Sec. 10. AS 23.20.291 is repealed July 1, 2016. 04 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 APPLICABILITY. AS 23.20.279, added by sec. 3 of this Act, applies to overpaid 07 benefits established after October 21, 2013. 08 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 09 read: 10 TRANSITION: REGULATIONS. The Department of Labor and Workforce 11 Development may adopt regulations necessary to implement the changes made by this Act. 12 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before 13 July 1, 2013. 14 * Sec. 13. Section 12 of this Act takes effect immediately under AS 01.10.070(c). 15 * Sec. 14. Except as provided in sec. 13 of this Act, this Act takes effect July 1, 2013.