Legislature(1993 - 1994)
1993-03-12 Senate Journal
Full Journal pdf1993-03-12 Senate Journal Page 0772 SB 162 SENATE BILL NO. 162 by the Senate Rules Committee by request of the Governor, entitled: "An Act relating to the implementation of the federal emergency unemployment compensation program; making changes relating to unemployment compensation under the extended benefits program and the supplemental state benefits program; and providing for an effective date." was read the first time and referred to the Labor and Commerce and Finance Committees. Zero fiscal note published today from Department of Labor. Governor's transmittal letter dated March 12: Dear Mr. President: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that will improve the financing of the state's unemployment compensation program and will enable the state to continue its participation in the federal emergency unemployment compensation program. Section 1 authorizes the implementation of the federal emergency unemployment compensation program in this state as required under AS23.20.080(b) for continued state participation in this program, and specifies that the eligibility standards for the emergency program are the same as for the existing unemployment compensation extended benefits program (AS23.20.406). Section 2 provides that an unemployed individual who cannot qualify for emergency unemployment benefits because of the earnings requirements of AS23.20.406(l) will be able to receive supplemental state unemployment benefits during a period in which emergency unemployment compensation benefits are being provided in this state and under the same conditions as those established for emergency benefits. 1993-03-12 Senate Journal Page 0773 SB 162 Section 3 establishes an alternative method that will allow an unemployment benefits claimant to qualify for extended benefits by incorporating an earnings test that was added as an option in the 1992 version of the federal Emergency Unemployment Compensation Act (P.L. 102-318). This optional method will benefit approximately 500 Alaskan claimants and will result in unemployment trust fund savings annually of approximately $150,000 during periods of extended benefits. The October3, 1993 effective date for sec. 3 coincides with the end of the emergency unemployment compensation program. See sec. 13 of the bill. Section 4 outlines a second level of benefits that are available during a "high unemployment period." Under this provision, Alaskans will be eligible for extended or emergency benefits for a longer period of time when the total unemployment rate equals or exceeds eight percent. Section 5 adds an additional optional "trigger" to allow the state to provide extended unemployment benefits. Under this provision, the state may qualify under more than one set of requirements for the extended unemployment benefit program. Section 6 eliminates the calculations that have been used to determine the "off" indicator and indicates that the "off" trigger occurs whenever the conditions indicating an "on" trigger are not applicable. This section also adds a provision that will allow the state to trigger "off" extended benefits in order to pay emergency unemployment compensation. Section 7 sets out the conditions under which the state will be considered to be in a "high unemployment period," thereby indicating that a longer duration of unemployment payments may be made to qualified individuals. Section 8 temporarily suspends the more stringent work search and eligibility requirements that have been required under the federal extended benefit program so that Alaska law will conform with new federal requirements. As a result, from March 7, 1993 through December 31, 1994, the same requirements that currently apply to regular unemployment benefits will be applicable to extended benefits or emergency benefits. 1993-03-12 Senate Journal Page 0774 SB 162 Sections 9 - 14 are sections that provide that the suspension of certain eligibility requirements will be effective retroactively to March 7, 1993 and that the additional provisions of the bill become effective on July 1, 1993, or October 3, 1993, to allow for an organized transition by the department. Sections 9 and 14 repeal the temporary suspension of eligibility requirements on January 1, 1995, consistent with the federal law. Sincerely, /s/ Walter J. Hickel Governor