05/09/2025 03:15 PM House LABOR & COMMERCE

         SB  79-PAYMENT OF WAGES; PAYROLL CARD ACCOUNT                                                                      
                                                                                                                                
4:35:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HALL  announced that the  final order of  business would                                                               
be SENATE BILL NO. 79, "An Act relating to wage payments."                                                                      
                                                                                                                                
CO-CHAIR HALL  stated that  the committee would  be looking  at a                                                               
House committee substitute for SB 79.                                                                                           
                                                                                                                                
4:36:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  moved to  adopt  the  proposed House  committee                                                               
substitute  (HCS) for  SB 79,  Version  34-LS0494\N, A.  Radford,                                                               
3/19/25, as a working document.                                                                                                 
                                                                                                                                
4:36:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK objected for the purpose of discussion.                                                                  
                                                                                                                                
CO-CHAIR   FIELDS  explained   that  the   request  to   prohibit                                                               
interchange fees  on taxes  and tips  from restaurant  owners had                                                               
been incorporated into the HCS.                                                                                                 
                                                                                                                                
REPRESENTATIVE  CARRICK removed  her objection.   There  being no                                                               
further objection, Version N was before the committee.                                                                          
                                                                                                                                
4:37:24 PM                                                                                                                    
                                                                                                                                
EVAN ANDERSON,  Staff, Representative  Zack Fields,  Alaska State                                                               
Legislature, on  behalf of Representative  Fields, who  serves as                                                               
co-chair  of the  House Labor  and  Commerce Standing  Committee,                                                               
gave  summary  of  changes  from the  original  bill  version  to                                                               
Version N of  SB 79 [included in the committee  file], which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     Section 1.                                                                                                             
      This section adds new sections to AS 06.90:                                                                               
     Sec  06.09.020(a):  prohibits   issuers,  payment  card                                                                  
     networks, acquirer banks,  or processors from receiving                                                                    
     or charging  merchants interchange  fees on the  tax or                                                                    
     gratuity portion  of an electronic  payment transaction                                                                    
     if   proper  documentation   is  provided   during  the                                                                    
     authorization or settlement process.                                                                                       
     Sec  06.09.020(b): Allows  merchants to  submit tax  or                                                                  
     gratuity  documentation  up  to   180  days  after  the                                                                    
     transaction if  it was not originally  transmitted. The                                                                    
     issuer  must  refund the  merchant  within  30 days  of                                                                    
     receiving this documentation.                                                                                              
     Sec 06.09.020(c):  Clarifies that documentation  may be                                                                  
     for individual or multiple transactions,  as long as it                                                                    
     clearly  shows total  transaction  amounts  and tax  or                                                                    
     gratuity portions.                                                                                                         
     Sec  06.09.020(d): States  that  payment card  networks                                                                  
     are not liable for the  accuracy of the tax or gratuity                                                                    
     documentation submitted by merchants.                                                                                      
     Sec  06.09.020(e): Prohibits  raising interchange  fees                                                                  
     on  the  remaining   (non-tax/gratuity)  portion  of  a                                                                    
     transaction to  compensate for  prohibited fees  on tax                                                                    
     or gratuity.                                                                                                               
     Sec  06.09.020(f):  Establishes   a  civil  penalty  of                                                                  
     $1,000  per   violation  and  requires   refunding  the                                                                    
     improper fee to the merchant.                                                                                              
     Sec 06.09.020(g):  Restricts use of  electronic payment                                                                  
     transaction  data to  processing or  legal requirements                                                                    
     only, safeguarding data privacy.                                                                                           
     Sec 06.09.020(h):  Defines key terms such  as "acquirer                                                                  
     bank,"   "issuer,"   "interchange   fee,"   "electronic                                                                    
     payment transaction,"  "settlement," "tax,"  and others                                                                    
     for the purposes of this section.                                                                                          
     Section 4.                                                                                                             
     AS 45.50.471(b):  Amended to add a  new violation under                                                                  
     the Act  for misuse  of electronic  payment transaction                                                                    
     data as described in Section 1, AS 06.09.020 (g).                                                                          
                                                                                                                                
4:39:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COULOMBE asked if the committee intended to take                                                                 
public testimony on the HCS for SB 79, Version N.                                                                               
                                                                                                                                
4:40:03 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:40 p.m. to 4:41 p.m.                                                                       
                                                                                                                                
4:41:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER noted that Sections 2 and 3 of SB 79,                                                                    
Version N, mirrored HB 171.                                                                                                     
                                                                                                                                
4:41:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HALL announced that SB 79 was held over.                                                                               
                                                                                                                                
CO-CHAIR HALL set an amendment deadline for SB 79 and noted that                                                                
the committee would take public testimony on the adopted HCS for                                                                
SB 79 at a later hearing.                                                                                                       
                                                                                                                                
[SB 79, Version N, was held over.]