Legislature(2013 - 2014)BELTZ 105 (TSBldg)
04/04/2013 05:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings | |
| SB93 | |
| SB25 | |
| HB71 | |
| SB58 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 93 | TELECONFERENCED | |
| += | SB 25 | TELECONFERENCED | |
| HB 71 | |||
| *+ | SB 58 | TELECONFERENCED | |
| *+ | SB 61 | TELECONFERENCED | |
| += | SB 79 | TELECONFERENCED | |
SB 25-UNEMPLOYMENT; ELEC. FILING OF LABOR INFO
5:43:47 PM
CHAIR DUNLEAVY announced the consideration of SB 25. "An Act
relating to electronic filing of certain information with the
Department of Labor and Workforce Development; relating to
surcharges, rate increase reduction, prohibition on the relief
of certain charges, the unemployment trust fund account, and the
offset of certain unemployment compensation debt under the
Alaska Employment Security Act; relating to the definition of
'covered unemployment compensation debt' in the Alaska
Employment Security Act; and providing for an effective date."
He noted that this was the second hearing.
5:44:29 PM
BRYNN KEITH, Acting Deputy Commissioner, Department of Labor and
Workforce Development (DOLWD) introduced herself.
PAUL DICK, Director, Division of Employment Security, Department
of Labor and Workforce Development (DOLWD) introduced himself.
5:45:03 PM
SENATOR OLSON asked what provisions are being made with regard
to electronic filing for those employers and employees in rural
areas that don't have Internet access.
MR. DICK explained that in rural areas, claimants for
unemployment insurance and employers would have the option of
paper or telephonic filing in addition to the Internet.
SENATOR MICCICHE asked if the bill allowed the unemployment
insurance tax rate to fluctuate .3 percent from year to year.
MR. DICK described the two components to calculate the final tax
rate. One measures the benefits versus wages over the past three
years. The other is called the trust fund solvency adjustment
and it has a limitation of .3 percent. The base tax and
surcharge together equal the final tax rate.
SENATOR MICCICHE asked if the increase/decrease percentage was a
combination of the two.
MR. DICK said yes.
SENATOR MICCICHE asked Ms. Keith and Mr. Dick if they could
alleviate the concerns about the future solvency of a fund that
to date has been healthy and intact.
5:48:27 PM
MS. KEITH explained that the bill provides the commissioner of
labor limited discretion under very controlled circumstances to
suspend part or all of the tax increase from year to year. She
offered her belief that, given those limitations, the health of
the Alaska Unemployment Insurance Trust Fund was not in
jeopardy. She described this as a "tweak around the margins" to
help the trust fund work a little better and circulate a bit
more money through the economy.
SENATOR MICCICHE inquired if it represents 100 percent of the
benefits of covered unemployment compensation debt.
MR. DICK restated that this legislation allows the commissioner
to suspend the increase component in the tax rate under certain
circumstances.
SENATOR MICCICHE asked what "100 percent funding of the fund"
represents.
MR. DICK stated that SB 25 doesn't change the formula. It looks
at solvency at the targeted rate of 3-3.3 percent of wages.
SENATOR MICCICHE summarized that the 100 percent rate is 3
percent of the worst case benefits of those represented by the
fund.
MR. DICK clarified that the target rate is 3-3.3 percent.
SENATOR MICCICHE asked if the fund has historically been funded
at 3-3.3 percent.
MR. DICK replied it has varied through the years. In some years
there have been adjustment credits to the Trust Fund Solvency
Adjustment and other years there are adjustment debits. This
year the rate was 2.2 percent so there was a .8 trust fund
solvency adjustment to get to the 3 percent target.
SENATOR MICCICHE inquired if it was sometimes a struggle to
maintain 3 percent. He asked, for example, if the fund was
adequately maintained in the late 1980s.
MR. DICK acknowledged that the trust fund decreased severely in
the mid-1980s, but once the economy turned around the fund
gradually recovered to its current level.
5:52:51 PM
CATHIE ROEMMICH, CEO, Juneau Chamber of Commerce, read the
following letter to Governor Parnell into the record:
Thank you for all your efforts to keep our state
strong by working for small business growth. It's not
often these days that we find ways to lower the cost
on anything so we applaud you for bringing forward the
solvency of Alaska's Unemployment Trust Fund Account.
The Juneau chamber of Commerce represents nearly 400
business members and their employees. It is our job to
promote and support a positive business climate not
only in Juneau but throughout the state. Our members
support legislation that updates and clarifies laws as
they relate to doing business in an effort to improve
Alaska's business environment. Therefore we would like
to add our support to SB 25.
We are pleased that this legislation will insure that
business owners as well as Alaskan workers are not
paying more to state government in unemployment
insurance taxes than necessary.
The Juneau Chamber also understands the importance of
compliance with the federal unemployment insurance
laws. Maintaining the significant Federal Unemployment
Tax Act credit that our employers currently receive is
another critical piece of responsible taxation. The
federal compliance components of SB 25 ensure that
Alaska businesses will not be sending any more money
to Washington DC than necessary for the unemployment
insurance program.
We are also supportive of the greater efficiencies
that the Department of Labor will be able to provide
by allowing electronic filing of unemployment claims.
5:54:59 PM
CHAIR DUNLEAVY closed public testimony. Finding no questions or
discussion, he asked for a motion.
5:55:09 PM
SENATOR MICCICHE moved to report SB 25, labeled 28-GS1494\A,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR DUNLEAVY announced that without objection, SB 25 moved
from the Senate Labor and Commerce Standing Committee.