Legislature(2009 - 2010)
04/16/2009 05:11 PM House FIN
| Audio | Topic |
|---|---|
| SB1 | |
| HB88 | |
| HB151 | |
| SB57 | |
| SB96 | |
| SB170 | |
| SB114 | |
| SB75 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 170(FIN)
"An Act modifying the Alaska unemployment insurance
statutes by redefining the base period for determining
eligibility for unemployment benefits; relating to
contributions, interest, penalties, and payments under
the Alaska Employment Security Act; and providing for
an effective date."
MAX HENSLEY, STAFF, SENATOR JOHNNY ELLIS, explained that SB
170 would make two minor amendments to the unemployment
insurance statutes. The first change, found in sections 13
and 20, would update eligibility standards for unemployed
workers receiving benefits front the Unemployment Insurance
Trust Fund. Current eligibility is based on employers
meeting a minimum earnings standard in the first four of the
previous five calendar quarters. The change would allow
workers failing to meet the standard to recalculate their
eligibility using the last four completed quarters. This
would expedite the receiving of unemployment benefits. The
change would make the state eligible for $15.6 million in
federal stimulus funding to the trust fund, and $1.1 million
in administrative costs. He stressed that, as long as a
portion of the federal stimulus dollars were deposited into
the trust fund, there would be no increase in the
unemployment insurance taxes paid by businesses and workers
that support the fund. Any additional funds would be spent
on targeted job training. He referred to letters of support
for the bill in committee members' packets (copy on file).
The second change is the addition of federally recognized
tribes to the list of reimbursable employers. Alaska has
been out of compliance with federal law since 2002. The
language would require the state to treat tribes like non-
profit employers and municipalities, and would allow tribal
entities to reimburse the unemployment trust fund for the
benefits drawn by employees, after the funds are drawn,
rather than before. He referred to the letter from the State
of Alaska Department of Labor (DOL) to the federal DOL (copy
on file). The letter notes that most tribal entities will
not take advantage of the change, but must be offered the
option to do so, in order for the state to be in compliance
with federal law. He cited a list of tribal entities that
would be affected by the legislation (copy on file).
7:23:34 PM
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, reported that the administration was neutral on
the bill, but the preference of the administration was that
the two sections be separated.
Co-Chair Hawker asked if the administration had a position
on either section. Mr. Bell related that the governor
sponsored the Native Entity Compliance component of the
legislation. He added that the state would be subject to
federal sanctions, if the provision was not adopted.
Co-Chair Hawker wondered why the other portion of the
legislation had not been endorsed by the administration.
Mr. Bell referred to the administrations belief that there
were strings attached to the federal stimulus dollars.
7:25:55 PM
Co-Chair Hawker asked what the attached strings might be.
Mr. Bell thought there was a required statutory change that
would have an impact on the systems liability. Co-Chair
Hawker wondered what the benefit to the state would be if
the statutory changes were made. Mr. Bell reported that the
state would be eligible to apply for and receive $15.6
million in the Unemployment Insurance Trust Fund.
7:27:00 PM
Representative Gara asked how much of the federal funds
would be available for the general fund in FY 2010 and FY
2011. Mr. Bell explained that the money would go
automatically into the Unemployment Insurance Trust Fund. He
stated that there were over $1 million general fund dollars
being invested in the trust fund. A future legislature could
make the determination to exchange some of the $15.6 million
in federal funds for the $1 million general fund dollars.
7:28:37 PM
Mr. Hensley added that the stimulus dollars were available
for a limited time, but once procured, could be spent at any
time going forward. He noted that it was Senator Ellis'
intent that employees and employers be held harmless on the
increased liability.
Representative Gara wondered if there would be enough in the
$15.6 million to replace $1 million of the general fund in
other areas. Mr. Bell concluded that he did not know.
Co-Chair Hawker ruminated that the actuarial calculation was
fairly sophisticated.
7:31:08 PM
Co-Chair Hawker opened public testimony, none being offered,
public testimony was closed.
7:33:24 PM
Co-Chair Hawker commented that there was a zero fiscal note.
7:33:48 PM
Vice-Chair Thomas MOVED to report CSSB 170 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 170 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new zero fiscal note by the
Department of Labor and Workforce Development.
7:35:16 PM
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