Legislature(2025 - 2026)BARNES 124

03/12/2025 03:15 PM House LABOR & COMMERCE

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Audio Topic
03:19:38 PM Start
03:20:00 PM HB75
03:39:42 PM Overview(s): Unemployment Insurance
04:09:55 PM HB121
04:35:48 PM HB123
04:48:57 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HOUSE BILL: UNEMPLOYMENT INSURANCE TELECONFERENCED
<Above Item Removed from Agenda>
+ Overview: Unemployment Insurance TELECONFERENCED
+= HB 121 ACCOUNTING; PRACTICE PRIVILEGE TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ HB 75 PERM FUND; EMPLOYMENT; ELIGIBILITY TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ HB 123 TAXATION: VEHICLE RENTALS, SUBPOENAS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
            HB 75-PERM FUND; EMPLOYMENT; ELIGIBILITY                                                                        
                                                                                                                                
3:20:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that the  first order of business would                                                               
be  HOUSE BILL  NO. 75,  "An  Act relating  to national  criminal                                                               
history record checks for certain  employees of the Department of                                                               
Revenue;  relating to  allowable absences  for eligibility  for a                                                               
permanent  fund  dividend;  relating to  the  confidentiality  of                                                               
certain  information  provided  on   a  permanent  fund  dividend                                                               
application;  relating to  electronic notice  of debt  collection                                                               
executed  on a  permanent  fund dividend;  and  providing for  an                                                               
effective date." [Before the committee was CSHB 75(STA).]                                                                       
                                                                                                                                
3:20:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JEREMY  BYNUM, Alaska State Legislature,  as prime                                                               
sponsor, presented  HB 75.  He  said HB 75 is  an important bill,                                                               
particularly for mariners.   He paraphrased the  second and third                                                               
paragraphs of  the sponsor statement  [included in  the committee                                                               
file], which read as follows [original punctuation provided]:                                                                   
                                                                                                                                
     The  Permanent  Fund  Dividend   is  a  cornerstone  of                                                                    
     economic  stability for  many  residents, but  outdated                                                                    
     regulations  create unnecessary  barriers for  Alaskans                                                                    
     pursuing  education,  maritime   careers,  and  medical                                                                    
     care.                                                                                                                      
                                                                                                                                
     House  Bill 75  addresses these  issues by  modernizing                                                                    
     allowable  absences,  enhancing program  security,  and                                                                    
     improving  administrative efficiency.    HB 75  ensures                                                                    
     that time  spent in a  U.S. merchant marine  academy is                                                                    
     treated  the   same  as  attending   college,  allowing                                                                    
     Alaskans  to  pursue   this  vital  technical  training                                                                    
     without losing  their PFD eligibility.   The  bill also                                                                    
     provides relief for college  students who cannot afford                                                                    
     to return  home for  winter or spring  breaks, ensuring                                                                    
     that these short-term absences  do not jeopardize their                                                                    
     qualification.   Additionally, it simplifies  the rules                                                                    
     governing   out-of-state   medical   care,   preventing                                                                    
     Alaskans with unexpected  health emergencies from being                                                                    
     penalized.                                                                                                                 
                                                                                                                                
     To   strengthen  program   security,  HB   75  requires                                                                    
     fingerprint-based  background checks  for PFD  Division                                                                    
     employees who handle  sensitive personal data, reducing                                                                    
     the risk  of fraud and  identity theft.  The  bill also                                                                    
     makes  the  PFD  applicant list  confidential,  further                                                                    
     protecting   Alaskans   from  fraudulent   claims   and                                                                    
     identify  theft.    Additionally, it  improves  overall                                                                    
     administrative  efficiency  by  allowing  residents  to                                                                    
     opt-in  to  electronic   levy  notices,  cutting  costs                                                                    
     associated with printing and mailing.                                                                                      
                                                                                                                                
REPRESENATIVE  BYNUM spoke  to  the  updated sectional  analysis,                                                               
stating  that  the previous  committee  of  referral had  changed                                                               
"armed services" to "uniform services".                                                                                         
                                                                                                                                
3:23:25 PM                                                                                                                    
                                                                                                                                
TREVOR SHAW, President & CEO,  Alaska Society of Certified Public                                                               
Accountants (AKCPA),  as invited  testifier, presented  a summary                                                               
of  changes  from  the  original bill  version  to  CSHB  75(STA)                                                               
[included  in   the  committee  file],  which   read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     1.  Changes   all  instances  of  "armed   services  to                                                                    
         "uniformed services".                                                                                                  
                                                                                                                                
     2.  Adds   Section  3  defining  "family   members"  by                                                                    
         relationship.                                                                                                          
                                                                                                                                
     3.  Adds  to Section 3  defining Uniformed  Services as                                                                    
         "Army, Navy, Air  Force, Marine Corps, Coast Guard,                                                                    
         Space  Force,  and the  Commissioned  Corps of  the                                                                    
         National  2 Oceanic and  Atmospheric Administration                                                                    
         and Public Health Services".                                                                                           
                                                                                                                                
     4. Renumbers the following sections.                                                                                       
                                                                                                                                
MR.  SHAW  noted  that  the  major change  was  the  addition  of                                                               
merchant mariner  training at the  Merchant Marine Academy  as an                                                               
allowable absence for permanent fund dividend (PFD) eligibility.                                                                
                                                                                                                                
MR.  SHAW further  noted that  HB 75  would not  expand statutory                                                               
protections for  voluntary out-of-state activities such  as Peace                                                               
Corps or  participation in  the Olympic games,  for example.   He                                                               
clarified  that CSHB  75(STA) "preserves  and aligns  protections                                                               
already granted  to individuals  whose careers  require extensive                                                               
training  and certification  outside  of Alaska."   He  explained                                                               
that  existing statute  already allows  for eligible  absence for                                                               
those "serving  under foreign or  coastal articles  of employment                                                               
aboard  an  ocean-going  vessel of  the  United  States  Merchant                                                               
Marine."  He stated that  HB 75 would clarify additional relevant                                                               
educational programs  that should qualify as  allowable absences.                                                               
He further stated that an  individual who received necessary out-                                                               
of-state   medical  care   would   not  be   exempted  from   PFD                                                               
eligibility.  He stated that  HB 75 would protect students unable                                                               
to return home [to Alaska]  during their spring or winter breaks,                                                               
"as long  as they ... return  to their educational program."   He                                                               
stated that PFD  Division employees would be  required to provide                                                               
fingerprints  under the  proposed legislation,  noting that  many                                                               
professions are subject to Federal  Bureau of Investigation (FBI)                                                               
background   checks,  such   as  nurses,   hairdressers,  massage                                                               
therapists, retail  estate appraisers, et cetera.   Additionally,                                                               
he  stated that  the  PFD applicant  list  would be  confidential                                                               
under CSHB 75(STA).   He concluded that  the proposed legislation                                                               
also   would  allow   individuals   to  opt   in  to   electronic                                                               
communications regarding their PFD.                                                                                             
                                                                                                                                
MR.  SHAW paraphrased  the sectional  analysis  for CSHB  75(STA)                                                               
[included  in   the  committee  file],  which   read  as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Section  1. Requires  the  Permanent  Fund Division  to                                                                  
     conduct  background  checks   on  and  fingerprint  its                                                                    
     employees  and  applicants  for employment  within  the                                                                    
     Division.                                                                                                                  
                                                                                                                                
     Section   2.  Modifies   the  allowable   absences  for                                                                  
     Permanent Fund Dividend eligibility to include:                                                                            
     •  Absences   for  school   breaks  and   holiday,  not                                                                    
     including summer break, during the academic year.                                                                          
     • Education (1)  to become a merchant  mariner, and (2)                                                                    
     through  other  vocational  programs  approved  by  the                                                                    
     United States Coast Guard.                                                                                                 
     • Prevents  medical absences  from limiting  the length                                                                    
     of voluntary absences.                                                                                                     
                                                                                                                                
     Section  3. Provides  definitions  relating to  "family                                                                  
     members" and "uninformed services".                                                                                        
                                                                                                                                
     Section 4.  Aligns to Sect 1.,  requiring the Permanent                                                                  
     Fund  Division  to  conduct background  checks  on  and                                                                    
     fingerprint   its   employees    and   applicants   for                                                                    
     employment within the Division.                                                                                            
                                                                                                                                
     Section 5.  Makes the names of  Permanent Fund Dividend                                                                  
     applicants confidential.                                                                                                   
                                                                                                                                
     Section 6.  Allows an opt-in option  for Permanent Fund                                                                  
     Dividend   recipients    to   receive    levy   notices                                                                    
     electronically.                                                                                                            
                                                                                                                                
     Section 7. Establishes an effective  date of January 1,                                                                  
     2026.                                                                                                                      
                                                                                                                                
3:27:28 PM                                                                                                                    
                                                                                                                                
SENATOR JESSE  KIEHL, Alaska State Legislature,  began by stating                                                               
that HB 75  contains half of the elements  originally proposed by                                                               
the  governor in  a previous  legislature.   He further  surmised                                                               
that the  proposed legislation  contains "important  tune-ups" to                                                               
allowable absences,  and the  safety and  efficiency of  the PFD.                                                               
He  concluded  that CSHB  75(STA)  is  not  a PFD  formula  bill;                                                               
rather, it is a "clean-up bill,"  noting that it nearly passed in                                                               
the prior year.                                                                                                                 
                                                                                                                                
3:28:58 PM                                                                                                                    
                                                                                                                                
KARI  NORE,  External  Affairs  Director,  Alaska  Chamber,  gave                                                               
invited  testimony  in support  of  HB  75.   She  gave  prepared                                                               
testimony  [included  in  the  committee  file],  which  read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     The Alaska Chamber was founded  in 1953 and is Alaska's                                                                    
     largest statewide business  advocacy organization.  Our                                                                    
     mission is  to promote  a healthy  business environment                                                                    
     in Alaska.   The Chamber has more than  700 members and                                                                    
     represents businesses of all  sizes and industries from                                                                    
     across the  state, representing 58,000  Alaskan workers                                                                    
     and $4.6 billion in wages.                                                                                                 
                                                                                                                                
     The  Chamber has  a formal  policy position  to support                                                                    
     clarifying  vocational training  absences for  purposes                                                                    
     of receiving  PFD benefits.   We support  the enactment                                                                    
     of clarifying  changes to the  PFD statute in  order to                                                                    
     assure  Alaskans  who  are  members  of  the  uniformed                                                                    
     services  or those  attending merchant  marine training                                                                    
     programs remain eligible to  obtain their PFD, provided                                                                    
     they have met all other eligibility criteria.                                                                              
                                                                                                                                
     Since  1997, over  700  Alaskans  have been  recruited,                                                                    
     trained, and placed in  deep-sea maritime employment by                                                                    
     attending the  Paul Hall  Center for  Maritime Training                                                                    
     and Education.   Many of  these candidates  were youth,                                                                    
     Alaskan  Natives, displaced  workers, and  veterans who                                                                    
     attended  an  apprentice  program paid  for  through  a                                                                    
     labor-management  training trust  fund.   In so  doing,                                                                    
     management can be assured the  individuals they hire to                                                                    
     crew  their  vessels  are thoroughly  trained  to  USCG                                                                    
     [United  States Coast  Guard]  standards and  uniformly                                                                    
     meet their security,  safety, and competency standards.                                                                    
     Furthermore,   by   recruiting    Alaskans   for   this                                                                    
     apprenticeship  opportunity  companies  in  the  Alaska                                                                    
     maritime  trade, like  Alaska  Tanker Company,  Crowley                                                                    
     Maritime, Matson Navigation,  and TOTE Maritime Alaska,                                                                    
     continue  to  meet  their  commitment  to  hire  local.                                                                    
     Denying PFD benefits  to Alaskans, particularly younger                                                                    
     Alaskans,  while  engaged  in this  required  training,                                                                    
     discourages  them from  considering this  pathway as  a                                                                    
     career  opportunity.   The purpose  for the  local hire                                                                    
     effort is  for these individuals to  be trained outside                                                                    
     and to  return to  Alaska to  spend their  earned wages                                                                    
     and enjoy their benefits on their time off.                                                                                
                                                                                                                                
     In   closing,  the   Chamber  supports   [HB  75]   and                                                                    
     encourages  swift passage  of this  straightforward and                                                                    
     good for business bill.   Thank you for considering the                                                                    
     Alaska Chamber's comments.                                                                                                 
                                                                                                                                
3:31:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  noted  that a  transportation  company  has  an                                                               
apprenticeship program due to efforts  by both former Congressman                                                               
Don  Young  and  former  Senator Ted  Stevens  to  develop  local                                                               
workforce.   He explained  that CSHB  75(STA) was  a multi-decade                                                               
piece  of legislation.   He  stated  that swift  passage was  his                                                               
goal.                                                                                                                           
                                                                                                                                
3:32:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COULOMBE  stated  that   she  is  in  support  of                                                               
legislation  that aids  in developing  Alaska's  workforce.   She                                                               
noted there is  a zero fiscal note.  She  queried whether current                                                               
employees,  future  employees,  or both  would  be  fingerprinted                                                               
under CSHB 75(STA).                                                                                                             
                                                                                                                                
REPRESENATIVE BYNUM deferred to Ms. Wojtusik.                                                                                   
                                                                                                                                
3:33:14 PM                                                                                                                    
                                                                                                                                
GENEVIEVE WOJTUSIK,  Director, Permanent Fund  Dividend Division,                                                               
Department of Revenue,  replied that, were CSHB  75(STA) to pass,                                                               
the division  would take  six months  to develop  regulations for                                                               
background checks.                                                                                                              
                                                                                                                                
3:33:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   COULOMBE  asked   whether   the  exemption   for                                                               
emergency medical leave was a new exemption.                                                                                    
                                                                                                                                
3:33:58 PM                                                                                                                    
                                                                                                                                
MS. WOJTUSIK  replied that  an emergency-related  exemption would                                                               
be a new piece of statute.   She explained that, currently, there                                                               
are 16 different  allowable absences in Alaska  Statute (AS) that                                                               
qualify as  an emergency.   She further explained that  there are                                                               
exemptions for  medical leave and  family medical leave,  but not                                                               
for emergency medical leave.                                                                                                    
                                                                                                                                
3:34:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON  queried  the reason  for  changing  armed                                                               
services  to  uniform  services   in  the  proposed  legislation,                                                               
thereby   including   the   National   Oceanic   and   Atmosphere                                                               
Administration (NOAA).                                                                                                          
                                                                                                                                
3:34:48 PM                                                                                                                    
                                                                                                                                
REPRESENATIVE  BYNUM  replied that  the  change  occurred in  the                                                               
previous  committee of  referral,  House  State Affairs  Standing                                                               
Committee.    He  explained  that  the  chair  of  the  committee                                                               
requested that change be included.                                                                                              
                                                                                                                                
MR.   SHAW   responded   that  the   change   was   proposed   by                                                               
Representative  Andi  Story  in   House  State  Affairs  Standing                                                               
Committee.  He explained that  it was technical change that would                                                               
create allowable absences for an additional 50 people or less.                                                                  
                                                                                                                                
3:36:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON asserted  that NOAA  was not  militarized.                                                               
He  stated that  he  would  like to  see  NOAA  removed from  the                                                               
proposed legislation.                                                                                                           
                                                                                                                                
3:36:52 PM                                                                                                                    
                                                                                                                                
MR. SHAW  noted that  the Peace Corps  also fall  under allowable                                                               
absences,  because  of  their service  as  commissioned  officers                                                               
through a  federal agency.   He stated  their office was  open to                                                               
refinement of CSHB 75(STA).                                                                                                     
                                                                                                                                
3:37:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER   echoed  concerns  about   changing  the                                                               
exemption  from "armed  services"  to "uniformed  services".   He                                                               
shared additional concerns that  exemptions are "always expanded,                                                               
never contracted."                                                                                                              
                                                                                                                                
REPRESENTATIVE  SADDLER  noted  that members  of  armed  services                                                               
cannot decline assignments  and asked whether members  of NOAA or                                                               
the public health service could decline moves.                                                                                  
                                                                                                                                
3:39:10 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS thanked the various speakers for CSHB 75(STA).                                                                  
                                                                                                                                
REPRESENATIVE BYNUM thanked the  committee members for their time                                                               
and stated that his office was always open to questions.                                                                        
                                                                                                                                
[HB 75 was held over.]                                                                                                          

Document Name Date/Time Subjects
2025_03_12_HL&C_UI_101_Presentation.pdf HL&C 3/12/2025 3:15:00 PM
Overview: Unemployment Insurance
HB 121 presentation 3.12.24.pdf HL&C 3/12/2025 3:15:00 PM
HB 121
HB 121 - Sectional Analysis.pdf HL&C 3/12/2025 3:15:00 PM
HB 121
HB 121 - Sponsor Statement.pdf HL&C 3/12/2025 3:15:00 PM
HB 121
HB0121A.pdf HL&C 3/12/2025 3:15:00 PM
HB 121
HB0123A.pdf HL&C 3/12/2025 3:15:00 PM
HB 123
HB123.VerA.SectionalAnalysis.3.5.25.pdf HL&C 3/12/2025 3:15:00 PM
HB 123
HB123.VerA.SponsorStatement.3.5.25.pdf HL&C 3/12/2025 3:15:00 PM
HB 123
HB123.VerA.FiscalNote.DOR.pdf HL&C 3/12/2025 3:15:00 PM
HB 123
HB 75 Version B Text.pdf HL&C 3/12/2025 3:15:00 PM
HB 75
HB 75 Sponsor Statement Version B.pdf HL&C 3/12/2025 3:15:00 PM
HB 75
HB 75 Sectional Analysis Version B.pdf HL&C 3/12/2025 3:15:00 PM
HB 75
Hb 75 Version B Summary of Changes .pdf HL&C 3/12/2025 3:15:00 PM
HB 75
HB 75 Companion Bill - SB 77 Support Letter from Tote Maritime.pdf HL&C 3/12/2025 3:15:00 PM
HB 75
SB 77
HB 75 Companion Bill - SB 77 Support Letter from Alaska Chamber.pdf HL&C 3/12/2025 3:15:00 PM
HB 75
SB 77
HB 75 Companion Bill - SB 77 Support Letter from Matson.pdf HL&C 3/12/2025 3:15:00 PM
HB 75
SB 77