2009-04-01                     Senate Journal                      Page 0727
           "An Act relating to contributions, interest, penalties,                                                             
              and payments under the Alaska Employment Security                                                                
          Act; and providing for an effective date."                                                                            
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Judiciary Committees.                                                                                                           
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Labor and Workforce                                                                     
          Development                                                                                                           
                                                                                                                                
Governor's transmittal letter dated March 31:                                                                                   
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Under the authority of article III, section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to contributions, interest,                                                     
penalties, and payments under the Alaska Employment Security Act.                                                               
                                                                                                                                
Under current law, most employers are required to pay employment                                                                
security contributions quarterly based on their payroll and experience                                                          
rate. However, under AS 23.20.277 and AS 23.20.278, nonprofit                                                                   
organizations and governmental entities can elect to be classified as                                                           
"reimbursable employers." A "reimbursable employer" only pays                                                                   
employment security contributions when an employee of the                                                                       
reimbursable employer receives unemployment compensation                                                                        
benefits. The "reimbursable employer" reimburses the unemployment                                                               
compensation fund for the amount that the fund paid in unemployment                                                             
benefits to the employee.                                                                                                       
                                                                                                                                
This bill would amend AS 23.20.277 and AS 23.20.278 to extend to                                                                
federally recognized tribes and their subdivisions, subsidiaries, and                                                           
businesses the option to choose to become a reimbursable employer.                                                              
The bill does not change the jurisdictional relationship between the                                                            
state and federally recognized tribes.                                                                                          
                                                                                                                                
This bill is being proposed to bring the state into compliance with                                                             
federal unemployment compensation law and its treatment of federally                                                            
recognized tribes. The Federal Unemployment Tax Act (26 U.S.C.                                                                  
3306, FUTA) now directs certified state unemployment insurance