04/15/2000 02:50 PM Senate L&C

                                                                                                                                
         HB 337-AMTS OWED ON UNEMPLOYMENT TAX: CLM V. PFD                                                                   
                                                                                                                                
CHAIRMAN MACKIE announced HB 337 to be up for consideration.                                                                    
                                                                                                                                
DWIGHT PERKINS,  Deputy Commissioner of the Department  of Labor and                                                            
Workforce Development  (DOLWD), stated  support for HB 337  and made                                                            
the following comments.   HB 337 will speed the recovery of overpaid                                                            
unemployment  insurance benefits that  are indebted to the  State of                                                            
Alaska by attaching  permanent fund dividends after  due process has                                                            
been followed.   The  total debt  balance of overpaid  claims  as of                                                            
12/31/99 was more than  $9 million.  The two categories of fraud and                                                            
non-fraud   overpaid  unemployment   insurance  benefits   would  be                                                            
returned to the trust fund  when collected.  The penalty amount will                                                            
be deposited  directly into the general  fund.  With the  passage of                                                            
HB 337,  DOLWD estimates  it could return  over $1.5 million  to the                                                            
trust  fund and  over $750,000  to  the general  fund.   Every  year                                                            
thereafter,  DOLWD expects  to deposit $700,000  to $800,000  in the                                                            
trust  fund and  $400,000  to $500,000  in the  general  fund.   The                                                            
passage of this  legislation is good for the unemployment  insurance                                                            
trust  fund, it  is  good for  employers,  and it  is  good for  the                                                            
general fund.   It provides  another tool  to collect money  that is                                                            
lawfully owed to the State of Alaska.                                                                                           
                                                                                                                                
SENATOR  LEMAN asked  why  it took  DOLWD so  long  to suggest  this                                                            
change.  He noted this  bill could have been attached to legislation                                                            
pertaining to collections that passed last year.                                                                                
                                                                                                                                
DEPUTY COMMISSIONER  PERKINS replied that each year  DOLWD looks for                                                            
good housekeeping  legislation  that makes  sense and will  bring in                                                            
money to the State.                                                                                                             
                                                                                                                                
SENATOR LEMAN expressed support for HB 337.                                                                                     
                                                                                                                                
There being no  further testimony or questions, SENATOR  LEMAN moved                                                            
HB 337 from committee  with individual recommendations.   He thought                                                            
the fiscal note should  show a gain but he pointed out the bill will                                                            
be heard in  the Senate Finance Committee.   With no objection,  the                                                            
motion carried.