CSHB 490(JUD)am-EMPLOYMENT SECURITY ACT AMENDMENTS  CHAIR CON BUNDE announced CSHB 490(JUD) am to be up for consideration. MR. TOM NELSON, Director, Division of Employment Security, Department of Labor and Workforce Development (DOLWD), explained that the changes are mainly housekeeping measures and will align state law with federal law and will bring Alaska into compliance with the Unemployment Insurance overpayment arrangement it has with other states. CHAIR BUNDE asked if anyone opposed the bill. MR. NELSON replied that he hadn't heard of any opposition. MS. TOBY STEINBERGER, Assistant Attorney General, offered to explain sections 1 - 3 and 8. The changes in sections 1- 3 deal with employment security records for criminal investigation and prosecution purposes. Locations of employment of suspects, witnesses, victims and persons on parole or probation can be found. TAPE 04-38, SIDE B    MS. STEINBERGER noted that the Employment Security Division is heavily federally funded. The U.S. Department of Labor has required that its records be kept confidential with some exceptions. Accordingly, AS 23.20.110 has allowed for these exceptions, but none of them allow for releasing of information for criminal prosecution and investigation purposes other than for prosecuting cases against claimants who have fraudulently received unemployment compensation benefits. This amendment would allow the Criminal Division to find suspects, witnesses and victims since the information is so up-to-date. Sometimes people move by the time the case goes to trial and this information will help in finding out where they work. The U.S. Department of Labor has reviewed and approved the amendment. Other states - Washington, Iowa, Arkansas, Georgia, Utah and Oklahoma - have been allowed to release employment security information for criminal investigations and prosecutions. SENATOR FRENCH asked for a quick review of what happens in the rest of the bill. MR. NELSON explained that sections 4 - 12 authorize the department to adopt regulations providing for the distribution of unclaimed excess contributions. Sections 5 and 6 clarify statute by adding the terms "manager" and "limited liability company" to the definitions. Section 7 brings Alaska into conformity with the Interstate Reciprocal Overpayment Recovery Arrangement that it has with other states and provides the Employment Security Division the ability to collect unemployment insurance overpayments on behalf of other states for reasons other than fraud. States in this agreement already provide this service to Alaska. Section 8 adds a definition of action to mean a court or administrative proceeding not brought under this chapter or in arbitration proceeding. Section 10 aligns Alaska language with federal law by clarifying which health care professionals are excluded from the definition of employment. Only student nurses and medical interns are excluded. Section 11 clarifies language that provides an exclusion from the definition of wages for payments or benefits provided by the employer for educational assistance to its employees. Federal law already provides this exclusion from their definition of wages. Section 13 is the immediate effective date clause. SENATOR RALPH SEEKINS moved to pass CSHB 490(JUD am from committee with individual recommendations and attached fiscal note. Senators Gary Stevens, Davis, French, Seekins and Chair Bunde vote yea; and CSHB 490(JUD) am moved from committee.