Legislature(2023 - 2024)
2024-05-01 House Journal
Full Journal pdf2024-05-01 House Journal Page 2541 HB 203 The following was read the second time: HOUSE BILL NO. 203 "An Act relating to wage payments." with the: Journal Page L&C RPT 4DP 3NR 1943 FN1: ZERO(LWF) 1943 Amendment No. 1 was offered by Representative Eastman: Page 1, line 1, following "payments" (title amendment): Insert "; relating to gift certificates, store gift cards, and general use prepaid cards; relating to unclaimed property; and relating to unlawful trade practices" Page 3, following line 5: Insert new bill sections to read: "* Sec. 3. AS 34.45.240 is amended to read: Sec. 34.45.240. Gift certificates, store gift cards, general use prepaid cards, and credit memos. (a) A gift certificate, store gift card, or general use prepaid card [OR A CREDIT MEMO,] issued in the ordinary course of an issuer's business (1) does not expire; (2) may not be subject to a dormancy fee, inactivity charge or fee, or service fee; and 2024-05-01 House Journal Page 2542 (3) is not subject to public sale under AS 34.45.360 [, THAT REMAINS UNCLAIMED BY THE OWNER FOR MORE THAN THREE YEARS AFTER BECOMING PAYABLE OR DISTRIBUTABLE IS PRESUMED ABANDONED]. (b) A credit memo issued in the ordinary course of an issuer's business that remains unclaimed by the owner for more than three years after becoming payable or distributable is presumed abandoned. The [IN THE CASE OF A GIFT CERTIFICATE, THE AMOUNT PRESUMED ABANDONED IS THE PRICE PAID BY THE PURCHASER FOR THE GIFT CERTIFICATE. IN THE CASE OF A CREDIT MEMO, THE] amount presumed abandoned is the amount credited to the recipient of the memo. * Sec. 4. AS 34.45.360(a) is amended to read: (a) Except as provided in (c) and (d) of this section and AS 34.45.240(a), the department, within three years after receiving abandoned property, shall sell it to the highest bidder at public sale in the area of the state that the department determines to be the most favorable market for the property involved. The department may decline the highest bid and reoffer the property for sale if in the judgment of the department the bid is insufficient. If in the judgment of the department the probable cost of sale exceeds the value of the property, the department need not offer the property for sale. A sale held under this section must be preceded by a single publication of notice, at least three weeks in advance of sale, in a newspaper of general circulation in the general area in which the property is to be sold. * Sec. 5. AS 34.45.760(8) is amended to read: (8) "gift certificate" has the meaning given in AS 45.45.940(f) [MEANS AN OBLIGATION OF A BUSINESS ASSOCIATION ARISING FROM A TRANSACTION BETWEEN THE BUSINESS ASSOCIATION AND A CONSUMER TO PROVIDE GOODS OR SERVICES AT A FUTURE DATE; "GIFT CERTIFICATE" INCLUDES A GIFT CERTIFICATE, STORED VALUE CARD, GIFT CARD, ON- LINE GIFT ACCOUNT, OR OTHER REPRESENTATION OR EVIDENCE OF THE OBLIGATION OF A BUSINESS ASSOCIATION]; * Sec. 6. AS 34.45.760(11) is amended to read: 2024-05-01 House Journal Page 2543 (11) "intangible property" (A) includes (i) money, checks, drafts, warrants, deposits, interest, dividends, and income; (ii) credit balances, customer overpayments, gift certificates, store gift cards, general use prepaid cards, security deposits, refunds, credit memos, unpaid wages, and unidentified remittances; (iii) stocks and other intangible equity interests in business associations; (iv) money deposited to redeem stocks, bonds, coupons, and other securities, or to make distributions; (v) amounts due and payable under the terms of insurance policies; (vi) amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit-sharing, employee savings, supplemental unemployment insurance, or similar benefits; and (vii) amounts due and payable as mineral proceeds; (B) does not include (i) unused airline tickets; (ii) shares of stock issued by a corporation organized under 43 U.S.C. 1601 et seq. (Alaska Native Claims Settlement Act) or unclaimed dividends payable on the shares of stock; or (iii) overpaid contributions by employers to the unemployment compensation fund under AS 23.20.130; * Sec. 7. AS 34.45.760 is amended by adding new paragraphs to read: (20) "general use prepaid card" has the meaning given in AS 45.45.940(f); (21) "store gift card" has the meaning given in AS 45.45.940(f). * Sec. 8. AS 45.45 is amended by adding a new section to read: Sec. 45.45.940. Gift certificates, store gift cards, and general use prepaid cards. (a) A person may not sell or issue a gift certificate, store gift card, or general use prepaid card that is 2024-05-01 House Journal Page 2544 subject to an expiration date. (b) After the purchase of a gift certificate, store gift card, or general use prepaid card, a person may not impose a fee, including a fee for inactivity or replacement, with respect to the certificate or card. A gift certificate, store gift card, or general use prepaid card must be redeemable for the full cash value of the certificate or card. (c) This section does not apply to the sale or offer of a gift certificate, store gift card, or general use prepaid card that is (1) distributed by the issuer of the certificate or card under an awards, loyalty, or promotional program; (2) donated to a nonprofit organization or a charitable organization; (3) a debit card that is linked to a demand deposit account or a share draft account at a financial institution; in this paragraph, "financial institution" has the meaning given in AS 06.05.990; or (4) used solely for telephone services. (e) The Department of Commerce, Community, and Economic Development may adopt regulations to implement this section. (f) In this section, (1) "general use prepaid card" means a card or other payment code or device that is issued by a person and is (A) redeemable at multiple unaffiliated merchants or service providers or at automated teller machines; (B) issued in a requested amount, regardless of whether that amount may, at the option of the issuer, be increased in value or reloaded if requested by the holder; (C) purchased or loaded on a prepaid basis; and (D) honored, upon presentation, by merchants for goods or services or at automated teller machines; (2) "gift certificate" means an electronic or written promise that is (A) redeemable at a single merchant or at an affiliated group of merchants that share the same name, mark, or logo; (B) issued in a specified amount that may not be increased or reloaded; (C) purchased on a prepaid basis in exchange for 2024-05-01 House Journal Page 2545 payment; and (D) honored, upon presentation, by the single merchant or affiliated group of merchants that share the same name, mark, or logo for goods or services; (3) "store gift card" means an electronic payment device, promise, plastic card, or other payment code or device that is (A) redeemable at a single merchant or at an affiliated group of merchants that share the same name, mark, or logo; (B) issued in a specified amount, regardless of whether that amount may be increased in value or reloaded at the request of the holder; (C) purchased on a prepaid basis in exchange for payment; and (D) honored, upon presentation, by the single merchant or affiliated group of merchants that share the same name, mark, or logo for goods or services. * Sec. 9. AS 45.50.471(b) is amended by adding a new paragraph to read: (58) violating AS 45.45.940 (gift certificates, store gift cards, and general use prepaid cards)." Representative Eastman moved and asked unanimous consent that Amendment No. 1 be adopted. Representative McCabe objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: HB 203 Second Reading Amendment No. 1 YEAS: 7 NAYS: 33 EXCUSED: 0 ABSENT: 0 Yeas: Eastman, Fields, Gray, Groh, Hannan, Josephson, Mina Nays: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Dibert, Edgmon, Foster, Galvin, Himschoot, C.Johnson, D.Johnson, McCabe, McCormick, McKay, Mears, Ortiz, Prax, Rauscher, Ruffridge, Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright 2024-05-01 House Journal Page 2546 And so, Amendment No. 1 was not adopted. Amendment No. 2 was offered by Representative Josephson: Page 2, lines 2 - 3: Delete ", including a list of fees assessed by the payroll card issuer" Page 2, line 4: Delete "cost-free" Page 2, line 6: Delete "cost-free" Page 2, lines 8 - 9: Delete ", in addition to fees assessed by the card issuer, the card may be subject to additional fees" Insert "the employer is responsible for fees assessed by the card issuer" Page 2, lines 11 - 12: Delete "at least one cost-free withdrawal each week or pay period, whichever is longer, in an amount" Insert "unlimited cost-free withdrawals" Page 2, line 16, following "charges": Insert "the employee" Page 2, line 17: Delete "employee" Page 2, line 23: Delete "." Insert ";" Page 2, following line 23: Insert a new paragraph to read: "(5) any other services provided to the employee by the card issuer." 2024-05-01 House Journal Page 2547 Representative Josephson moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Sumner objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: HB 203 Second Reading Amendment No. 2 YEAS: 19 NAYS: 21 EXCUSED: 0 ABSENT: 0 Yeas: Armstrong, Carrick, Coulombe, Dibert, Eastman, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan, Himschoot, Josephson, McCormick, Mina, Ortiz, Schrage, Story Nays: Allard, Baker, Carpenter, Cronk, C.Johnson, D.Johnson, McCabe, McKay, Mears, Prax, Rauscher, Ruffridge, Saddler, Shaw, Stapp, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright And so, Amendment No. 2 was not adopted. Amendment No. 3 was offered by Representative Josephson: Page 2, line 4: Delete "of a cost-free method for" Insert "that there is no charge to" Page 2, lines 11 - 12: Delete "at least one cost-free withdrawal each week or pay period, whichever is longer, in an amount" Insert "unlimited withdrawals" Representative Josephson moved and asked unanimous consent that Amendment No. 3 be adopted. Representative McCabe objected. The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: 2024-05-01 House Journal Page 2548 HB 203 Second Reading Amendment No. 3 YEAS: 13 NAYS: 27 EXCUSED: 0 ABSENT: 0 Yeas: Armstrong, Dibert, Eastman, Fields, Foster, Galvin, Groh, Hannan, Josephson, McCormick, Mina, Ortiz, Story Nays: Allard, Baker, Carpenter, Carrick, Coulombe, Cronk, Edgmon, Gray, Himschoot, C.Johnson, D.Johnson, McCabe, McKay, Mears, Prax, Rauscher, Ruffridge, Saddler, Schrage, Shaw, Stapp, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright And so, Amendment No. 3 was not adopted. Amendment No. 4 was offered by Representative Josephson: Page 1, lines 12 - 13: Delete "or the employee has not authorized deposit of the employee's wages under AS 23.10.043" Representative Josephson moved and asked unanimous consent that Amendment No. 4 be adopted. Representative McCabe objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: HB 203 Second Reading Amendment No. 4 YEAS: 37 NAYS: 3 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Dibert, Eastman, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan, Himschoot, C.Johnson, D.Johnson, Josephson, McCabe, McCormick, McKay, Mears, Mina, Ortiz, Rauscher, Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Wright Nays: Prax, Ruffridge, Vance And so, Amendment No. 4 was adopted. 2024-05-01 House Journal Page 2549 Amendment No. 5 was offered by Representative Schrage: Page 2, lines 11-12: Delete "each week" Insert "every two weeks" Delete "longer" Insert "shorter" Representative Schrage moved and asked unanimous consent that Amendment No. 5 be adopted. There was objection. Amendment No. 1 to Amendment No. 5 was offered by Representative Eastman: Page 1, lines 1-2 of the amendment: Delete "Delete "each week" Insert "every two weeks"" Representative Eastman moved and asked unanimous consent that Amendment No. 1 to Amendment No. 5 be adopted. Representative Sumner objected. The question being: "Shall Amendment No. 1 to Amendment No. 5 be adopted?" The roll was taken with the following result: HB 203 am Second Reading Amendment No. 1 to Amendment No. 5 YEAS: 3 NAYS: 37 EXCUSED: 0 ABSENT: 0 Yeas: Eastman, Josephson, Rauscher Nays: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Dibert, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan, Himschoot, C.Johnson, D.Johnson, McCabe, McCormick, McKay, Mears, Mina, Ortiz, Prax, Ruffridge, Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright 2024-05-01 House Journal Page 2550 And so, Amendment No. 1 to Amendment No. 5 was not adopted. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: HB 203 am Second Reading Amendment No. 5 YEAS: 37 NAYS: 3 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Dibert, Eastman, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan, Himschoot, C.Johnson, D.Johnson, McCormick, McKay, Mears, Mina, Ortiz, Prax, Ruffridge, Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright Nays: Josephson, McCabe, Rauscher And so, Amendment No. 5 was adopted. Representative Saddler moved and asked unanimous consent that HB 203 am be considered engrossed, advanced to third reading, and placed on final passage. There being no objection, it was so ordered. HB 203 am was read the third time. The question being: "Shall HB 203 am pass the House?" The roll was taken with the following result: HB 203 am Third Reading Final Passage YEAS: 38 NAYS: 2 EXCUSED: 0 ABSENT: 0 Yeas: Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe, Cronk, Dibert, Eastman, Edgmon, Fields, Foster, Galvin, Gray, Groh, Himschoot, C.Johnson, D.Johnson, McCabe, McCormick, McKay, Mears, Mina, Ortiz, Prax, Rauscher, Ruffridge, Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright Nays: Hannan, Josephson 2024-05-01 House Journal Page 2551 And so, HB 203 am passed the House and was referred to the Chief Clerk for engrossment.