04/11/2009 09:00 AM House FINANCE

HOUSE BILL NO. 212                                                                                                            
                                                                                                                                
     "An  Act  modifying the  Alaska  unemployment  insurance                                                                   
     statutes to comply with the  requirements of the federal                                                                   
     economic  stimulus bill  by redefining  the base  period                                                                   
     for determining  eligibility for unemployment  benefits;                                                                   
     and providing for an effective date."                                                                                      
                                                                                                                                
11:33:11 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HARRY CRAWFORD,  SPONSOR, explained  that the                                                                   
legislation  would  allow  the  state to  put  $15.6  million                                                                   
stimulus money into the UI trust  fund. He addressed concerns                                                                   
that the provision  would cost Alaskan employers  and assured                                                                   
the  committee that  the rates  employers would  have to  pay                                                                   
would be lowered.                                                                                                               
                                                                                                                                
Representative Crawford  added that the base  period would be                                                                   
calculated  differently  with  the stimulus  money,  but  the                                                                   
state could return to present operations at a later date.                                                                       
                                                                                                                                
GUY BELL,  ASSISTANT COMMISSIONER  AND DIRECTOR,  DIVISION OF                                                                   
ADMINISTRATIVE  SERVICES, DEPARTMENT  OF LABOR AND  WORKFORCE                                                                   
DEVELOPMENT,  referred   to  past  testimony   regarding  the                                                                   
alternate base period.                                                                                                          
                                                                                                                                
Representative  Gara asked whether  funds would be  left over                                                                   
that could  be used without  negatively impacting  employers.                                                                   
Mr. Bell  explained that the  provision would make  the state                                                                   
eligible to  receive the $15.6  million. The amount  would be                                                                   
deposited  into Alaska's unemployment  insurance (UI)  trust,                                                                   
which  would  then  be  available to  pay  UI  benefits.  The                                                                   
legislature would  be able to appropriate some or  all of the                                                                   
excess money  for other purposes  identified in  the stimulus                                                                   
bill  for re-employment  services  or UI  administration  for                                                                   
quality enhancements.                                                                                                           
                                                                                                                                
11:37:20 AM                                                                                                                   
                                                                                                                                
Co-Chair Hawker queried the administration's  position on the                                                                   
legislation.  Mr. Bell  replied  that the  administration  is                                                                   
neutral.                                                                                                                        
                                                                                                                                
Representative  Crawford  MOVED  conceptual  Amendment  1  to                                                                   
change the effective  date from "immediately"  to "January 1,                                                                   
2010."                                                                                                                          
                                                                                                                                
Co-Chair Stoltze OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Mr.  Bell  supported  the amendment  and  explained  how  the                                                                   
department's  program  worked  using  the  calendar  year  in                                                                   
calculating benefits.                                                                                                           
                                                                                                                                
11:40:02 AM                                                                                                                   
                                                                                                                                
Representative Crawford  WITHDREW conceptual Amendment  1. He                                                                   
MOVED conceptual Amendment 2 to  change the effective date to                                                                   
"the benefit year starting on January 1, 2010."                                                                                 
                                                                                                                                
Co-Chair Hawker  OBJECTED for  DISCUSSION. He asked  that the                                                                   
bill  be held  to get  the amendment  into  writing. He  also                                                                   
wanted the  second DLWD issue  related to tribal  language to                                                                   
be sorted out.                                                                                                                  
                                                                                                                                
HB  212  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.