2013-01-18                     House Journal                      Page 0070
HB 76                                                                                                                         
HOUSE BILL NO. 76 by the House Rules Committee by request of                                                                    
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to electronic filing of certain information with                                                          
     the Department of Labor and Workforce Development; relating to                                                             
     surcharges, 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."                                                           
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Labor & Workforce Development                                                                              
2.  Zero, Dept. of Labor & Workforce Development                                                                                
                                                                                                                                
The Governor's transmittal letter dated January 17, 2013, follows:                                                              
                                                                                                                                

2013-01-18                     House Journal                      Page 0071
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
To keep our state strong, we are working for small business growth.                                                             
One way to grow Alaskan opportunity is to assure that Alaskans and                                                              
business owners in our state do not have to pay more to State                                                                   
government in unemployment insurance taxes than necessary. I am                                                                 
submitting legislation to accomplish that goal. Under the authority of                                                          
Article III, Section 18 of the Alaska Constitution, I am transmitting a                                                         
bill relating to the unemployment trust fund account that will meet                                                             
federal compliance requirements, ensure that the unemployment                                                                   
insurance (UI) fund remains solvent, and minimize the burden for                                                                
employers and employees.                                                                                                        
                                                                                                                                
Alaska law currently provides for automatic increases in                                                                        
unemployment insurance contributions from Alaskan workers and                                                                   
business owners, even when Alaska's unemployment insurance fund is                                                              
solvent without the increase. This legislation prevents overtaxing for                                                          
UI contributions while safeguarding the solvency of the fund. It gives                                                          
the Commissioner of the Department of Labor and Workforce                                                                       
Development (DOLWD) the authority to eliminate or reduce increases                                                              
in unemployment insurance tax rates when appropriate, based on                                                                  
standards to ensure the actuarial soundness of the unemployment trust                                                           
fund.                                                                                                                           
                                                                                                                                
Additionally, the bill allows for greater efficiencies by giving                                                                
DOLWD the authority to permit electronic filing. It also provides that                                                          
the department may offset covered unemployment compensation debt                                                                
against a claimant's federal income tax refund and clarifies                                                                    
participation in the federal treasury offset program.                                                                           
                                                                                                                                
This simple reform will allow Alaska's small and mid-sized businesses                                                           
to grow and create more jobs for the prosperity of all Alaskans.                                                                
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"