HB 193-UNEMPLOYMENT BENEFITS; PAID PARENT LEAVE  3:46:02 PM CO-CHAIR FIELDS announced that the final order of business would be HOUSE BILL NO. 193, "An Act establishing a paid parental leave program; relating to unemployment benefits; relating to the collection of child support obligations; and relating to the duties of the Department of Labor and Workforce Development." CO-CHAIR FIELDS invited questions from committee members. 3:46:39 PM REPRESENTATIVE CARRICK asked for confirmation that HB 193 would not affect the State Training and Employment Program (STEP)/Technical Vocational Education Program (TVEP). CO-CHAIR HALL responded that the programs would be held harmless under HB 193. 3:47:00 PM CO-CHAIR HALL replied that the State Training and Employment Program (STEP) and the Technical Vocational Education Program (TVEP) would be held harmless under HB 193. 3:47:17 PM CO-CHAIR FIELDS moved to adopt Amendment 1 to HB 193, labeled 34-LS0612\G.15, A. Radford, 5/1/25, which read as follows: Page 1, line 1, following "program;": Insert "relating to special employer  contributions; relating to the employment assistance  and training program account;" Page 1, line 12, following "AS 23.10.710": Insert "and AS 23.20.290(g)" Page 2, line 3: Delete "unemployment" Page 4, lines 7 - 9: Delete "prorate the weekly benefit amount in accordance with AS 23.10.730 for an employee using an intermittent or a reduced leave schedule" Insert "calculate the employee's weekly benefit in accordance with AS 23.10.730 for employees using the accelerated benefit option" Page 4, lines 10 - 14: Delete all material and insert: "(d) The maximum number of weeks for which an eligible employee may take paid parental leave, and for which paid parental leave insurance benefits are payable in a benefit year, is between eight and 26 weeks, cumulative, as determined by the department. The department shall determine and make public the maximum duration of the parental leave benefit each year, based on fund solvency, forecasted use, and actuarial studies completed under AS 23.10.790. For employees using the accelerated benefit option, the department shall calculate the number of weeks an eligible employee may take paid parental leave in accordance with AS 23.10.730." Page 4, lines 24 - 30: Delete all material and insert: "Sec. 23.10.730. Accelerated benefit option. An eligible employee may choose to receive the paid parental leave benefit on an accelerated basis. For each week the employee elects the accelerated benefit option, the employee shall receive double the weekly benefit amount to which the employee is entitled. However, for each week the employee chooses the accelerated benefit option, the duration of the benefit is reduced by a corresponding week." Page 11, following line 5: Insert a new section to read: "Sec. 23.10.790. Actuarial studies. Every two years, the commissioner shall submit to the governor an actuarial study of the benefit structures established under AS 23.10.700 - 23.10.795."  Page 11, following line 10: Insert new bill sections to read:  "* Sec. 2. AS 23.15.625 is amended to read: Sec. 23.15.625. Employment assistance and  training program account. The employment assistance and training program account is established in the general fund. The commissioner of administration shall separately account for money collected under AS 23.15.630 and AS 23.20.290 that the department deposits in the general fund. The annual estimated balance in the account may be appropriated by the legislature to the department to implement AS 23.15.620 - 23.15.660. The legislature may appropriate the lapsing balance of the account to the unemployment compensation fund established in AS 23.20.130.  * Sec. 3. AS 23.20.290(c) is amended to read: (c) The rate of contributions for each employer is a percentage of the average benefit cost rate multiplied by the employer's experience factor set out in column C of the table in this subsection opposite the employer's applicable rate class set out in column A plus the fund solvency adjustment surcharge required under (f) of this section. That percentage is 76 percent beginning January 1, 2009, and 73 percent beginning January 1, 2010. However, except as provided  in (h) and (i) of this section, the rate of contributions for an employer may not be less than one percent or more than six and one-half percent. The rate of contributions for an employer in rate class 21 may not be less than 5.4 percent. The rate of contributions for an employer must be rounded to the nearest 1/100th of one percent. COLUMN B COLUMN C COLUMN A Cumulative Experience Rate Class Ratable Payroll Factor at least but less than (percent) (percent) 1 5 .40 2 5 10 .45 3 10 15 .50 4 15 20 .55 5 20 25 .60 6 25 30 .65 7 30 35 .70 8 35 40 .80 9 40 45 .90 10 45 50 1.00 11 50 55 1.00 12 55 60 1.10 13 60 65 1.20 14 65 70 1.30 15 70 75 1.35 16 75 80 1.40 17 80 85 1.45 18 85 90 1.50 19 90 95 1.55 20 95 99.99 1.60 21 99.99 1.65.  * Sec. 4. AS 23.20.290 is amended by adding new subsections to read: (g) The department may implement special employer contributions if the department determines that implementing special employer contributions is consistent with maintaining fund solvency. If the department implements special employer contributions it shall, in the manner provided in this chapter, collect from each employer (1) an amount equal to .20 percent of the wages, as set out in AS 23.20.175, on which the employer is required to make contributions under (c) of this section and remit the money collected under this paragraph to the parental leave fund account established under AS 23.10.705; and (2) an amount equal to .10 percent of the wages, as set out in AS 23.20.175, on which the employer is required to make contributions under (c) of this section and remit the money collected under this paragraph to the employment assistance and training program account established under AS 23.15.625. (h) Notwithstanding (c) of this section, the department shall reduce the contributions owed by an employer under this chapter by an amount equal to the amount collected under (g) of this section. (i) After implementing the special employer contributions described in (g) of this section, the department may reduce the employer contribution to a rate of not less than .50 percent if the department determines that reducing the rate is consistent with maintaining fund solvency." Renumber the following bill sections accordingly. Page 22, following line 13: Insert new bill sections to read:  "* Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to read: COMMENCEMENT OF PAID PARENTAL LEAVE. Eligible employees may receive paid parental leave beginning January 1, 2027, for qualifying purposes that occur on or after January 1, 2027.  * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION: ACTUARIAL STUDIES. The commissioner of labor and workforce development shall submit to the governor the first actuarial study required by AS 23.10.790, enacted by sec. 1 of this Act, on December 1, 2026." REPRESENTATIVE COULOMBE objected. CO-CHAIR FIELDS stated that Amendment 1 would give the Department of Labor and Workforce Development (DLWD) the authority to set the number of weeks of parental leave per claimant annually based on the solvency of the trust fund. He explained that range would be between 8 to 26 weeks, depending on the solvency of the fund. He stated that it was unknown how many claimants would take parental leave. He explained that the amendment would additionally add language giving an "accelerated benefit option" which would allow parents to take full wage replacement over a shorter period of time. He stated that Amendment 1 would direct DLWD to conduct actuarial studies on the paid parental leave fund and additionally would give DOLWD the authority to divert additional funds from the employer contribution to the parental leave fund. He further stated that the amendment would allow DLWD to divert 0.1 from employer contribution into STEP and it would further allow the reduction of the employer contribution to 0.5, essentially representing a 20 percent tax cut. He noted that all proposed diversions and reductions were dependent on the solvency unemployment insurance (UI) fund. He concluded by noting that the amendment would set the effective date of disbursement on January 1, 2027, which would allow the parental leave fund for one year of accumulation. 3:50:44 PM REPRESENTATIVE SADDLER spoke to the accelerated benefit option and asked whether someone could take their benefit as a "lump sum." CO-CHAIR FIELDS replied that it was not intended to be a "lump sum cashable benefit." He explained that it was designed for the claimant to either take a full period of leave at 50 percent wage replacement or half of the time at full wage replacement. 3:51:32 PM REPRESENTATIVE CARRICK asked who decides the solvency of the trust. CO-CHAIR FIELDS replied it is designed to be the same process as it currently is. 3:52:30 PM LENNON WELLER, Economist 3, Division of Administrative Services, Department of Labor & Workforce Development (DLWD), stated that he functions as that actuary for UI. He explained that standard UI tax rates are constrained by statute. He further explained that costs are looked at as a percentage of wages covered which constitutes the base tax rate. He further stated that he also looks at reserve ratio, with the target reserve ratio explicitly laid out in Alaska Statute (AS) as between 3 and 3.3 percent of covered wages. He stated that, based on where the trust fund stands in relation to the reserve ratio, [DOLWD] can implement a solvency surcharge when underfunded. 3:54:12 PM REPRESENTATIVE CARRICK asked if the commissioner or the department head could override the actuarial assessment under Amendment 1 to HB 193. MR. WELLER responded that the actuarial assessment could not be overridden with respect to the UI system. He offered his belief that the amendment would give the actuary more leeway. 3:55:31 PM CO-CHAIR FIELDS spoke to the drafting process and the intent of the amendment. He echoed Mr. Weller in a previous hearing, noting that the employer contribution could be "flex[ed]... substantially." He stated that the amendment would not change how [DLWD] makes its determination. 3:56:11 PM REPRESENTATIVE SADDLER referred to page 2 of the proposed amendment, citing "the commissioner shall submit an actuarial study" and requested more details on the process. MR. WELLER responded that he is not a certified actuary, but functions as an actuary for [DLWD]. REPRESENTATIVE SADDLER asked whether the department was equipped to conduct an actuarial study. CO-CHAIR FIELDS responded that the intent was that the department would conduct an actuarial study in the same manner that the UI trust fund is managed. He noted that the amendment was developed through conversations with [DLWD]. 3:58:12 PM REPRESENTATIVE COULOMBE removed her objection to Amendment 1 to HB 193. There being no further objection, Amendment 1 was adopted. CO-CHAIR FIELDS indicated that he would not be offering Amendment 2 to HB 193. 3:58:35 PM CO-CHAIR FIELDS moved to adopt Amendment 3 to HB 193, as amended, labeled 34-LS0612\G.14, A. Radford, 5/1/25, which read as follows: Page 20, following line 12: Insert a new bill section to read: "* Sec. 3. AS 23.20.350 is amended by adding a new subsection to read: (h) On January 1 of each year, the department shall increase the maximum base period wages in (d) of this section and the allowance for eligible dependents under (f) of this section by a percentage equal to the average percentage of increase over the first three of the preceding four calendar years in all items of the Consumer Price Index for all urban consumers for urban Alaska prepared by the United States Department of Labor, Bureau of Labor Statistics, and calculate new weekly benefit amounts accordingly. The new base period wage amount shall be rounded to the nearest $250. The department may not decrease the base period wage amount or the allowance for eligible dependents." Renumber the following bill sections accordingly. 3:58:39 PM The committee took an at-ease from 3:58 p.m. to 4:01 p.m. 4:01:52 PM CO-CHAIR FIELDS repeated his motion to adopt Amendment 3 to HB 193, as amended. REPRESENTATIVE CARRICK objected for the purpose of discussion. CO-CHAIR FIELDS explained that the amendment requires [DLWD] to adjust the following for inflation: maximum base period of wages, dependent allowance, weekly benefit amounts, and the parental leave benefits. 4:02:43 PM REPRESENTATIVE SADDLER stated that he was resistant to inflation adjustments for formula funding and was opposed to the amendment. CO-CHAIR FIELDS offered his agreement with regard to unrestricted general funds (UGF). He noted that wages are growing with inflation. 4:03:13 PM REPRESENTATIVE CARRICK removed her objection to Amendment 3 to HB 193, as amended. REPRESENTATIVE SADDLER objected. A roll call vote was taken. Representatives Coulombe, Burke, Carrick, Hall, and Fields voted in favor of the motion to adopt Amendment 3 to HB 193, as amended. Representatives Saddler voted against it. Therefore, Amendment 3 was adopted by a vote of 5-1. 4:03:55 PM REPRESENTATIVE SADDLER moved to adopt Amendment 4 to HB 193, as amended, labeled 34-LS0612\G.5, A. Radford, 4/28/25, which read as follows: Page 20, line 12: Delete "[370]." Page 20, following line 12: Insert new material to read: "70,250 675 [370]." CO-CHAIR FIELDS objected for the purpose of discussion. REPRESENTATIVE SADDLER explained that the amendment would correct a drafting error by putting an income cap at $70,000. CO-CHAIR FIELDS removed his objection. There being no further objection, Amendment 4 was adopted. 4:04:36 PM REPRESENTATIVE SADDLER moved to adopt Amendment 5 to HB 193, as amended, labeled 34-LS0612\G.6, A. Radford, 4/29/25, which read as follows: Page 9, line 1: Delete ", and annually thereafter," CO-CHAIR FIELDS objected. REPRESENTATIVE SADDLER explained that Amendment 5 would remove the requirement that employers remind employees annually of the parental leave program. 4:05:15 PM CO-CHAIR HALL stated that since adopting Amendment 1 and allowing a greater degree of flexibility in what [DLWD] pays out annually, she thought it best to remind employees annually of benefits, as they could fluctuate with the adoption of Amendment 1. 4:05:52 PM CO-CHAIR FIELDS opined that the first year of implementation would likely see modest benefits and that the benefits are likely to build up over time. 4:06:14 PM REPRESENTATIVE CARRICK offered her appreciation for the intent of Amendment 5 but stated that she was opposed to it. She suggested that annual notification could encourage individuals to stay in Alaska and start families. REPRESENTATIVE SADDLER found the argument for notice of changeable benefits compelling; thus, he moved to withdraw his motion to adopt Amendment 5 to HB 193, as amended. [The motion was treated as withdrawn.] 4:07:20 PM REPRESENTATIVE SADDLER moved to adopt Amendment 6 to HB 193, as amended, labeled 34-LS0612\G.7, A. Radford, 4/29/25, which read as follows: Page 7, lines 1 - 18: Delete all material. Page 7, line 19: Delete "Sec. 23.10.765." Insert "Sec. 23.10.760." Page 7, line 22: Delete "Sec. 23.10.770." Insert "Sec. 23.10.765." Page 8, line 31: Delete "Sec. 23.10.775." Insert "Sec. 23.10.770." Page 9, line 15: Delete "Sec. 23.10.780." Insert "Sec. 23.10.775." Page 10, line 17: Delete "Sec. 23.10.785." Insert "Sec. 23.10.780." Page 21, line 5: Delete "AS 23.10.780" Insert "AS 23.10.775" CO-CHAIR FIELDS objected for purpose of discussion. REPRESENTATIVE SADDLER explained that Amendment 6 would remove the requirement that DOLWD submit an annual report to the legislature. He stated that he was trying to keep the workload light for DOLWD. 4:07:56 PM CO-CHAIR HALL offered her support for the amendment. 4:08:09 PM REPRESENTATIVE CARRICK asked if there was any default reporting requirement without the annual reporting requirement described in Amendment 6. 4:08:33 PM PALOMA HARBOUR, Director, Division of Employment & Training Services, Department of Labor & Workforce Development, replied that Amendment 1 specifically added a requirement for an actuarial study. She noted that this study would provide a lot of data. 4:08:59 PM CO-CHAIR FIELDS removed his objection. There being no further objection, Amendment 6 to HB 193, as amended, was adopted. 4:09:11 PM REPRESENTATIVE SADDLER moved to adopt Amendment 7 to HB 193, as amended, labeled 34-LS0612\G.13, A. Radford, 5/1/25, which read as follows: Page 1, line 1: Delete "parental" Insert "family" Page 1, line 6: Delete "Parental" Insert "Family" Page 1, line 7: Delete "parental" Insert "family" Page 1, line 8: Delete "parental" Insert "family" Page 1, line 10: Delete "Parental" Insert "Family" Delete "parental" Insert "family" Page 1, line 12, following "AS 23.10.710": Insert "and AS 23.20.290(g)" Page 2, line 3: Delete "unemployment" Page 2, line 4: Delete "parental" Insert "family" Page 2, line 5: Delete "parental" Insert "family" Page 2, line 17: Delete "parental" Insert "family" Page 2, line 20: Delete "or" Page 2, line 22, following "employee": Insert "; or (3) care for an immediate family member with a serious health condition" Page 2, line 23: Delete "parental" Insert "family" Page 2, line 24: Delete "parental" Insert "family" Page 2, line 27: Delete "parental" Insert "family" Page 3, line 4: Delete "parental" Insert "family" Page 3, line 14: Delete "or" Page 3, line 16, following "AS 18.50.165": Insert "; or (6) a document from a health care provider verifying the serious health condition and need for care of the employee's immediate family member" Page 3, following line 16: Insert a new subsection to read: "(d) In this section, "health care provider" has the meaning given in AS 39.20.550." Page 3, line 19: Delete "parental" Insert "family" Page 3, line 24: Delete "parental" Insert "family" Page 4, line 2: Delete "parental" Insert "family" Page 4, line 9, following "schedule.": Insert "The department shall calculate the weekly benefit amount in accordance with AS 23.10.730 for an employee electing an accelerated benefit option." Page 4, line 11: Delete "parental" in both places Insert "family" in both places Page 4, line 12: Delete "26" Insert "12" Page 4, line 13, following "schedule,": Insert "or who have elected an accelerated leave option," Page 4, line 17: Delete "parental" Insert "family" Page 4, line 21: Delete "parental" Insert "family" Page 4, line 23: Delete "parental" Insert "family" Page 4, line 24, following "schedule": Insert "; accelerated benefit option" Page 4, line 25: Delete "parental" Insert "family" Page 4, line 27: Delete "parental" Insert "family" Page 4, lines 29 - 30: Delete all material and insert: "(b) An eligible employee may elect to receive an accelerated benefit option to receive a higher paid family leave compensation rate for a reduced duration as follows: (1) the employee may receive double the daily or weekly benefit amount to which the employee is entitled for a total of six weeks in a benefit year; or (2) the employee may receive one and one- half times the daily or weekly benefit amount to which the employee is entitled for a total of nine weeks in a benefit year." Page 5, line 4: Delete "parental" Insert "family" Page 5, line 17: Delete "parental" Insert "family" Page 5, line 20: Delete "parental" Insert "family" Page 5, line 23: Delete "parental" Insert "family" Page 5, line 27: Delete "parental" Insert "family" Page 5, line 29: Delete "parental" Insert "family" Page 6, line 1: Delete "parental" Insert "family" Page 6, line 5: Delete "parental" Insert "family" Page 6, line 8: Delete "parental" Insert "family" Page 6, line 10: Delete "parental" Insert "family" Page 6, line 13: Delete "parental" Insert "family" Page 6, line 15: Delete "parental" Insert "family" Page 6, line 19: Delete "parental" Insert "family" Page 6, line 21: Delete "parental" Insert "family" Page 6, line 24: Delete "parental" Insert "family" Page 6, line 26: Delete "parental" Insert "family" Page 6, line 28: Delete "parental" Insert "family" Page 7, line 21: Delete "parental" Insert "family" Page 7, line 23: Delete "parental" Insert "family" Page 7, line 27: Delete "parental" Insert "family" Page 7, line 29: Delete "parental" Insert "family" Page 8, line 3: Delete "parental" Insert "family" Page 8, line 6: Delete "parental" Insert "family" Page 8, line 10: Delete "parental" Insert "family" Page 8, line 23: Delete "parental" Insert "family" Page 9, line 3: Delete "parental" Insert "family" Page 9, line 5: Delete "parental" Insert "family" Page 9, line 6: Delete "parental" Insert "family" Page 9, line 8: Delete "parental" Insert "family" Page 9, line 17: Delete "parental" Insert "family" Page 9, line 19: Delete "parental" Insert "family" Page 9, line 21: Delete "parental" Insert "family" Page 9, line 23: Delete "parental" Insert "family" Page 10, line 7: Delete "parental" Insert "family" Page 10, line 18: Delete "parental" Insert "family" Page 10, line 20: Delete "parental" Insert "family" Page 10, line 21: Delete "parental" Insert "family" Page 10, line 26: Delete "parental" Insert "family" Page 10, line 31: Delete "parental" in both places Insert "family" in both places Page 11, line 10, following "23.20.526": Insert "; (4) "immediate family member" means the employee's spouse; the employee's biological, adopted, step, or foster child; a legal ward of the employee, or person to whom the employee stands in loco parentis; the employee's biological, adoptive, or step parent, or someone who stood in loco parentis to the employee when the employee was a minor; (5) "serious health condition" has the meaning given in AS 39.20.550.  * Sec. 3. AS 23.20.290 is amended by adding a new subsection to read: (g) In the manner provided in this chapter and for the benefit of the paid family leave program, the department shall collect from each employer an amount equal to .15 percent of the wages, as set out in AS 23.20.175, on which the employer is required to make contributions under (c) of this section and remit the money collected under this subsection to the family leave fund account established under AS 23.10.705. Notwithstanding (c) of this section, the department shall reduce the contributions owed by an employer under this chapter by an amount equal to the amount collected under this subsection." Renumber the following bill sections accordingly. Page 21, line 4: Delete "parental" Insert "family" Page 22, line 13: Delete "parental" Insert "family" CO-CHAIR FIELDS objected. REPRESENTATIVE SADDLER explained that the amendment would expand eligible leave to include family medical leave and explained the funding mechanism and benefits schedule outlined by Amendment 7. He noted that not everyone could give up income to care for a sick family member or a new child. 4:11:19 PM CO-CHAIR HALL offered her appreciation for the amendment but stated that she was currently opposed to the amendment. She opined that it was important to be conservative with the proposed legislation being new. She offered her hope that, later, the program could incorporate what is described in the amendment. 4:12:04 PM REPRESENTATIVE CARRICK asked why Representative Saddler elected not to include personal medical issues in his amendment. She further asked whether current sick or personal leave requirements covered family medical issues. REPRESENTATIVE SADDLER stated that he desired to match the federal Family and Medical Leave Act (FMLA). He noted that he did not include personal medical leave due to cost and flexibility. REPRESENTATIVE CARRICK asked whether workman's compensation could cover what's addressed in the amendment. REPRESENTATIVE SADDLER deferred to Mr. Collins. 4:14:00 PM CHUCK COLLINS, Director, Division of Worker's Compensation, Department of Labor & Workforce Development, introduced himself for the public record. REPRESENTATIVE CARRICK asked what was included in Amendment 7 that would not be covered by workers compensation or FMLA. MR. COLLINS stated that workers compensation in Alaska has no coverage for family leave. He provided an anecdote to illustrate his answer, stating that were he to sustain an injury at work, if his spouse took time off to care for him, her time off would not be covered by workers compensation. He noted that FMLA could provide job protection for his spouse, but it was unpaid. 4:15:38 PM CO-CHAIR FIELDS maintained his objection. He offered his agreement with Co-Chair Hall. A roll call vote was taken. Representatives Saddler and Carrick voted in favor of the motion to adopt Amendment 7 to HB 193, as amended. Representatives Coulombe, Burke, Hall, and Fields voted against it. Therefore, Amendment 7 failed to be adopted by a vote of 2-4. 4:16:43 PM REPRESENTATIVE COULOMBE moved to adopt Amendment 8 to HB 193, as amended, labeled 34-LS0612\G.11, A. Radford, 4/29/25, which read as follows: Page 20, line 12: Delete "[370]." Page 20, following line 12: Insert new material to read: "70,250 70,500 678  70,500 70,750 680  70,750 71,000 683  71,000 71,250 685  71,250 71,500 688  71,500 71,750 690  71,750 72,000 692  72,000 72,250 695  72,250 72,500 697  72,500 72,750 700  72,750 73,000 702  73,000 73,250 704  73,250 73,500 707  73,500 73,750 709  73,750 74,000 712  74,000 74,250 714  74,250 74,500 716  74,500 74,750 719  74,750 75,000 721  75,000 75,250 724  75,250 75,500 726  75,500 75,750 728  75,750 76,000 731  76,000 76,250 733  76,250 76,500 736  76,500 76,750 738  76,750 77,000 740  77,000 77,250 743 77,250 77,500 745  77,500 77,750 748  77,750 78,000 750  78,000 78,250 752  78,250 78,500 755  78,500 78,750 757  78,750 79,000 760  79,000 79,250 762  79,250 79,500 764  79,500 79,750 767  79,750 80,000 769  80,000 80,250 772  80,250 80,500 774  80,500 80,750 776  80,750 81,000 779  81,000 81,250 781  81,250 81,500 784  81,500 81,750 786  81,750 82,000 788  82,000 82,250 791  82,250 82,500 793  82,500 82,750 796  82,750 83,000 798  83,000 83,250 800  83,250 83,500 803  83,500 83,750 805  83,750 84,000 808  84,000 84,250 810  84,250 84,500 813  84,500 84,750 815  84,750 85,000 817  85,000 85,250 820  85,250 85,500 822  85,500 85,750 825  85,750 86,000 827  86,000 86,250 829  86,250 86,500 832  86,500 86,750 834  86,750 87,000 837  87,000 87,250 839  87,250 87,500 841  87,500 87,750 844  87,750 88,000 846  88,000 88,250 849  88,250 88,500 851  88,500 88,750 853  88,750 89,000 856  89,000 89,250 858  89,250 89,500 861  89,500 89,750 863  89,750 90,000 865  90,000 90,250 868  90,250 90,500 870  90,500 90,750 873  90,750 91,000 875  91,000 91,250 877  91,250 91,500 880  91,500 91,750 882  91,750 92,000 885  92,000 92,250 887  92,250 92,500 889  92,500 92,750 892  92,750 93,000 894  93,000 93,250 897  93,250 93,500 899  93,500 93,750 901  93,750 94,000 904  94,000 94,250 906  94,250 94,500 909  94,500 94,750 911  94,750 95,000 913  95,000 95,250 916  95,250 95,500 918  95,500 95,750 921  95,750 96,000 923  96,000 96,250 925  96,250 96,500 928  96,500 96,750 930  96,750 97,000 933  97,000 97,250 935  97,250 97,500 938  97,500 97,750 940  97,750 98,000 942  98,000 98,250 945  98,250 98,500 947  98,500 98,750 950  98,750 99,000 952  99,000 99,250 954  99,250 99,500 957  99,500 99,750 959  99,750 100,000 962  100,000 962 [370]." CO-CHAIR FIELDS objected. REPRESENTATIVE COULOMBE explained that Amendment 8 would increase the weekly UI benefit from $370 to $678. She further explained that the amendment would increase the salary eligibility for UI benefits to $100,000. 4:17:38 PM CO-CHAIR FIELDS asked Mr. Weller to speak to the amendment. MR. WELLER replied that it would be the most generous increase in the benefits schedule in Alaska's history and would constitute double the average wage of an Alaska resident. He recommended caution, noting that the average annual taxable wage base in 2025 was $51,700. He stated that it would be ideal to keep the revenues and expenditure equal. He further stated that its possible the revenue would grow at a slower rate than the benefits schedule, noting that it could be an issue in the long term. 4:20:32 PM CO-CHAIR FIELDS moved to adopt Conceptual Amendment 1 to Amendment 8, to delete all material beginning from page 3, line 11 [as numbered on Amendment 8, beginning with "85,000"] to the end. 4:21:03 PM REPRESENTATIVE SADDLER objected to Conceptual Amendment 1 to Amendment 8. CO-CHAIR FIELDS explained that the conceptual amendment would retain the weekly benefits increase proposed by Representative Coulombe, and capping the eligible salary at $85.000. REPRESENTATIVE SADDLER stated that it would be a significant expansion of benefits. He stated that he would like to preserve the revenue for those with a greater need for the UI benefits. REPRESENTATIVE SADDLER maintained his objection to Conceptual Amendment 1. A roll call vote was taken. Representatives Burke, Carrick, Coulombe, Hall, and Fields voted in favor of the motion to adopt Conceptual Amendment 1 to Amendment 8 to HB 193, as amended. Representatives Saddler voted against it. Therefore, Conceptual Amendment 1 was adopted by a vote of 5-1. CO-CHAIR FIELDS removed his objection to Amendment 8, as amended, to HB 193, as amended. REPRESENTATIVE SADDLER objected. 4:22:51 PM A roll call vote was taken. Representatives Burke, Carrick, Coulombe, Hall, and Fields voted in favor of the motion to adopt Amendment 8, as amended, to HB 193, as amended. Representatives Saddler voted against it. Therefore, Amendment 8, as amended, was adopted by a vote of 5-1. 4:23:23 PM REPRESENTATIVE COULOMBE moved to adopt Amendment 9 to HB 193, as amended, labeled 34-LS0612\G.16, A. Radford, 5/1/25, which read: Page 4, line 12: Delete "26" Insert "12" CO-CHAIR FIELDS objected. REPRESENTATIVE COULOMBE explained that she offered the amendment to make the point that 26 weeks of paid parental leave would cost $175 million. She noted that this concern was addressed in Amendment 1. REPRESENTATIVE COULOMBE [moved to] withdraw her motion to adopt Amendment 9. [There being no objection, Amendment 9 was treated as withdrawn.] 4:24:12 PM REPRESENTATIVE COULOMBE moved to adopt Amendment 10 to HB 193, as amended, labeled 34-LS0612\G.18, A. Radford, 5/1/25, which read as follows: Page 4, line 31, through page 5, line 15: Delete all material. Page 5, line 16: Delete "Sec. 23.10.740" Insert "Sec. 23.10.735" Page 6, line 4: Delete "Sec. 23.10.745" Insert "Sec. 23.10.740" Page 6, line 9: Delete "Sec. 23.10.750" Insert "Sec. 23.10.745" Page 6, line 12: Delete "Sec. 23.10.755" Insert "Sec. 23.10.750" Page 7, line 1: Delete "Sec. 23.10.760" Insert "Sec. 23.10.755" Page 7, line 19: Delete "Sec. 23.10.765" Insert "Sec. 23.10.760" Page 7, line 22: Delete "Sec. 23.10.770" Insert "Sec. 23.10.765" Page 8, line 31: Delete "Sec. 23.10.775" Insert "Sec. 23.10.770" Page 9, line 15: Delete "Sec. 23.10.780" Insert "Sec. 23.10.775" Page 10, line 17: Delete "Sec. 23.10.785" Insert "Sec. 23.10.780" Page 21, line 5: Delete "AS 23.10.780" Insert "AS 23.10.775" CO-CHAIR FIELDS objected for the purposes of discussion. REPRESENTATIVE COULOMBE noted that there was a section of the proposed legislation that allowed self-employed individuals to receive benefits. She noted that it made up approximately $8,000 of the fiscal note. She suggested that, with the program being new, it would be better to remove that section and address it at a later time. 4:25:19 PM CO-CHAIR HALL offered her support for Amendment 10. 4:25:31 PM CO-CHAIR FIELDS asked for confirmation that Amendment 10 would reduce the fiscal note. MS. HARBOUR confirmed that it was correct and noted that [DLWD] could save approximately $700,000 with the amendment. CO-CHAIR FIELDS withdrew his objection to Amendment 10. CO-CHAIR FIELDS asked for confirmation that [DLWD] could divert funds into the proposed leave program as needed with the adoption of all prior amendments. MS. HARBOUR responded that it was correct, providing the passage of the fiscal notes. CO-CHAIR FIELDS stated that it was the intent for the administrative costs of the parental leave program to be paid by the funding mechanism established under HB 193 to avoid a UGF obligation. 4:26:55 PM REPRESENTATIVE COULOMBE requested an estimate of operational costs to [DLWD]. MS. HARBOUR replied that there are two fiscal notes under HB 193. She estimated that the cost of tax collection would be approximately $675,000 annually and additionally stated that the costs of administrating the program would be approximately $875,000. She noted that in its first year of implementation, the program would be a little more expensive. CO-CHAIR FIELDS announced that there being no further objection, Amendment 10 was adopted. 4:28:09 PM REPRESENTATIVE COULOMBE moved to adopt Amendment 11 to HB 193, as amended, labeled 34-LS0612\G.20, A. Radford, 4/29/25, which read as follows: Page 20, following line 12: Insert a new bill section to read:  "* Sec. 3. AS 23.20.350(f) is amended to read: (f) An individual who establishes a benefit year is eligible for an allowance for dependents in addition to the individual's weekly benefit amount. The department may require an individual claiming or receiving an allowance for dependents to produce income tax returns, birth certificates, notices of adoption or custody, social security account number of spouse, verification of support documents, or other information necessary to verify that the allowance is payable to the individual. The allowance for dependents (1) is $72 [$24] per week for each dependent, except that the total allowance for dependents paid to an individual may not exceed $216 [$72] for each week of unemployment; (2) is payable beginning with the week during the benefit year in which the individual claims an allowance for the dependent and is payable for the remainder of the individual's eligibility for regular, extended, or supplemental payments during the benefit year; (3) may not be claimed for a new dependent after the end of the benefit year or after the exhaustion of regular benefits in the benefit year [; (4) REPEALED (5) REPEALED]." Renumber the following bill sections accordingly. CO-CHAIR FIELDS objected for the purpose of discussion. REPRESENTATIVE COULOMBE explained that the amendment would raise the per dependent benefit from $23 to $72. She noted that the adjustment reflects inflation. She further stated that the maximum total week l7 allowance for dependents could not exceed $216 under Amendment 11. CO-CHAIR FIELDS removed his objection. There being no further objection, Amendment 11 was adopted. 4:29:20 PM REPRESENTATIVE BURKE moved to adopt Amendment 12 to HB 193, as amended, labeled 34-LS0612\G.4, A. Radford, 4/28/25, which read as follows: Page 2, line 19, following "by,": Insert "appointment as the legal guardian of that child by," Page 2, line 21, following "adoption": Insert ", legal guardianship," Page 3, line 14: Delete "or" Page 3, line 16, following "AS 18.50.165": Insert "; or (6) a document from a state or tribal court confirming a petition for or decree of legal guardianship of the child" CO-CHAIR FIELDS objected for the purposes of discussion. REPRESENTATIVE BURKE explained that the amendment would include adoption by way of tribal courts or personal relations under the "qualifying purpose language" under HB 193. She shared a personal anecdote, noting that her children were adopted through tribal courts. She noted that adoption would be allowed through documentation from a state or tribal court under Amendment 12. 4:30:48 PM REPRESENTATIVE SADDLER stated his interpretation of petition under Amendment 12 would allow for leave once a petition, which may not be approved, is filed. He suggested removing petitions from the amendment. REPRESENTATIVE BURKE suspected that the timeline between filing for guardianship to court hearing was much shorter in tribal courts than state courts. She noted that, in her experience, the child was in her custody for the duration of the process. She preferred to leave petition in the amendment. REPRESENTATIVE SADDLER stated that his intent was to prohibit an individual from taking leave upon petition and another period of leave upon approval and decree of guardianship. He expressed his concern over a parent or guardian taking "two tranches of leave." 4:32:21 PM CO-CHAIR FIELDS noted that a guardian or parent might need to travel to a neighboring community to complete the adoption process with the child. He stated that the leave was necessary to complete the process. CO-CHAIR FIELDS, in response to an additional question from Representative Saddler, stated that the "total period of leave would be the same," but it could be possible that the period of leave would need to start before finalizing the adoption paperwork. 4:33:36 PM REPRESENTATIVE BURKE confirmed that is the intent of the proposed amendment. CO-CHAIR FIELDS, in response to concerns from Representative Saddler regarding language, noted that the committee would request Legislative Legal to look over the amendment. REPRESENTATIVE SADDLER asked if changes in legal guardianship are frequent in the case of adoption. He shared concerns regarding subsequent leaves of absence with frequent changes in legal guardianship. 4:34:30 PM REPRESENTATIVE COULOMBE stated that the scenario that Representative Saddler described happens frequently in foster care. She opined that a parent or guardian taking advantage of the leave of absence was inconsequential compared to the needs of the child. 4:35:21 PM REPRESENTATIVE BURKE provided a personal anecdote, stating that she returned to her work within a week of her daughter's birth. She stated that she wanted to ensure that a child placed with an adult with the intent of adoption could receive the benefit throughout the process, which could be lengthy. REPRESENTATIVE SADDLER offered his appreciation for the explanations. 4:36:37 PM CO-CHAIR HALL offered her appreciation for the amendment. CO-CHAIR FIELDS withdrew his objection. There being no further objection, Amendment 12 was adopted. 4:37:29 PM CO-CHAIR HALL moved to report HB 193, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 193(L&C) was reported out of the House Labor and Commerce Standing Committee. 4:38:01 PM CO-CHAIR HALL thanked committee members for their collaboration on HB 193.