CSSB 229(CRA): "An Act relating to employment contributions and to the state training and employment program; and providing for an effective date."

00CS FOR SENATE BILL NO. 229(CRA) 01 "An Act relating to employment contributions and to the state training and 02 employment program; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. FINDINGS. The legislature finds that 05 (1) an inadequate number of jobs exist in this state to meet the needs of those 06 seeking employment; 07 (2) many Alaskans are having difficulty finding jobs, especially in trying to 08 meet the changing technology needs in this state; 09 (3) employer and employee contributions paid into the unemployment 10 insurance system are used for payment of compensation to unemployed workers and allocation 11 of a small portion of employment contributions paid by employees would provide money to 12 develop a state training and employment program to meet the training needs of Alaskans; 13 (4) a state training and employment program would 14  (A) help prevent future claims against unemployment benefits;

01  (B) foster new jobs by encouraging businesses to locate in the state due 02 to availability of a skilled labor force and by minimizing employers' unemployment 03 costs; and 04  (C) increase training opportunities to those workers severely affected 05 by the fluctuations in the state economy or technological changes in the workplace in 06 the state; 07 (5) it would be beneficial to the state for state training and employment 08 programs funded by the state training and employment program to supplement, but not to 09 displace, programs funded by money available to a training entity for public or private 10 training, and not to replace, parallel, compete with, or duplicate existing federally approved, 11 jointly administered apprenticeship and training programs; 12 (6) it would be beneficial to the state to make the state training and 13 employment program a permanent state program to benefit Alaska workers, businesses, and 14 industry. 15 * Sec. 2. AS 23.15 is amended by adding new sections to read: 16 ARTICLE 4A. STATE TRAINING AND EMPLOYMENT PROGRAM. 17  Sec. 23.15.620. STATE TRAINING AND EMPLOYMENT PROGRAM. 18 There is created in the department a program to finance and award grants to 19 employment assistance and training entities. Employment assistance and training 20 entities shall give appropriate state agencies full access to accounting records 21 concerning grants received to assure compliance with program standards. 22  Sec. 23.15.625. EMPLOYMENT ASSISTANCE AND TRAINING 23 PROGRAM ACCOUNT. The employment assistance and training program account 24 is established in the general fund. The commissioner of administration shall separately 25 account for money collected under AS 23.15.630 that the department deposits in the 26 general fund. The annual estimated balance in the account may be appropriated by the 27 legislature to the department to implement AS 23.15.620 - 23.15.660. The legislature 28 may appropriate the lapsing balance of the account to the unemployment compensation 29 fund established in AS 23.20.130. 30  Sec. 23.15.630. SPECIAL EMPLOYEE UNEMPLOYMENT CREDIT AND 31 CONTRIBUTIONS FOR PROGRAM. (a) In the manner provided in AS 23.20, the

01 department shall collect from each employee an amount equal to one-tenth of one 02 percent of the wages, as set out in AS 23.20.175, on which the employee is required 03 to make contributions under AS 23.20.290(d). The department shall remit to the 04 Department of Revenue, in accordance with AS 37.10.050, money collected under this 05 subsection. 06  (b) Notwithstanding AS 23.20.290(d), the department shall credit each 07 employee with an amount equal to the amount collected from the employee under (a) 08 of this section against unemployment contributions owed by the employee under 09 AS 23.20. 10  (c) The department shall assess and collect, under AS 23.20.185 - 23.20.275, 11 interest and penalties for delinquent reports and payments due under this section. 12 Interest and penalties collected shall be handled in accordance with AS 23.20.130(d). 13  Sec. 23.15.635. PEOPLE TO BE SERVED. Within the limits of its grant, an 14 employment assistance and training entity receiving a grant under AS 23.15.651 shall 15 provide services set out in AS 23.15.640 to state residents who, immediately before 16 beginning training or receiving benefits under a grant financed by this program, 17  (1) are unemployed and 18  (A) are receiving unemployment insurance benefits; or 19  (B) have exhausted the right to unemployment insurance 20 benefits within the past three years; 21  (2) are employed, but liable to be displaced within the next six months 22 because of 23  (A) reductions in overall employment within a business; 24  (B) elimination of the worker's current job; or 25  (C) a change in conditions of employment requiring that, to 26 remain employed, the employee must learn substantially different skills that the 27 employee does not now possess; or 28  (3) have worked in a position covered by AS 23.20 at any time during 29 the last three years, and are not currently eligible for unemployment insurance benefits 30 because 31  (A) their employment has been seasonal, temporary, part-time,

01 or marginal; 02  (B) their qualifying wages are insufficient because of limited 03 job opportunity; or 04  (C) they are employed but, because they are underemployed, 05 they are in need of employment assistance and training to obtain full 06 employment. 07  Sec. 23.15.640. SERVICES FOR ELIGIBLE PEOPLE. Subject to the limits 08 of its grant, an entity receiving a grant under AS 23.15.651 shall provide one or more 09 program elements. The program elements include 10  (1) industry-specific training; 11  (2) on-the-job training; 12  (3) institutional or classroom job-linked training; 13  (4) support services, including allowances; 14  (5) relocation assistance; or 15  (6) provisions of necessary tools, work-related clothing, safety gear, or 16 other necessities to obtain or retain employment. 17  Sec. 23.15.645. DUTIES AND POWERS OF THE DEPARTMENT. (a) The 18 department shall award a grant to the council to 19  (1) administer a state training and employment program; and 20  (2) award grants to qualified entities. 21  (b) When a grant is awarded to the council, the department shall annually 22 provide to the council a priority list of targeted projects or services, based on 23 unemployment statistics, unemployment insurance claims, occupational and industrial 24 projections, availability of other training and employment programs, and other relevant 25 data. The department shall also provide annually to the council a priority list of 26 criteria for eligibility to maximize services to those people most in need of training 27 under AS 23.15.620 - 23.15.660. In developing the priority list for targeted projects 28 and services, the department shall solicit comments from the Department of 29 Community and Regional Affairs, Department of Education, Department of Commerce 30 and Economic Development, University of Alaska, organized labor, the council, and 31 the administrative entities of the substate service delivery areas established for the

01 council. The department shall give preference to projects and services that train 02 individuals in industries identified in the resident hire report required under 03 AS 36.10.130 as employing a disproportionate percentage of nonresident individuals. 04  (c) The department may adopt regulations necessary to implement this chapter. 05  (d) The council shall establish grant administration requirements including 06 accounting procedures that apply to qualified entities and their grantees. 07  (e) In making a grant under this section, the council shall require that the 08 qualified entity and grantees of the qualified entity limit the amount of the grant 09 proceeds spent on administration so that the total spent on administration from the 10 proceeds of the employment assistance and training program account, including 11 amounts spent by the council itself, does not exceed 20 percent. The amount collected 12 and remitted in accordance with the shared cost requirements of the federal Office of 13 Management and Budget Circular A-87 entitled "Cost Principles for State and Local 14 Governments" is not considered an amount spent on administration under this 15 subsection. 16  Sec. 23.15.651. DUTIES OF ALASKA HUMAN RESOURCE INVESTMENT 17 COUNCIL; GRANTS; ELIGIBLE ENTITIES. (a) In implementing this program 18 under a grant received under AS 23.15.645, and subject to the limit of its grant the 19 council shall award grants, in accordance with the priority list established by the 20 department under AS 23.15.645(b) to employment assistance and training entities. A 21 training entity is eligible for a grant under this section if the entity meets program 22 requirements and can demonstrate that 23  (1) its accounting systems include controls adequate to check the 24 accuracy and reliability of accounting data, promote operating efficiency, and assure 25 compliance with program requirements and generally accepted accounting principles; 26 and 27  (2) its activities do not replace or compete in any way with a federally 28 approved, jointly administered apprenticeship program or any other existing training 29 programs. 30  (b) The council may not award a grant if the grant would displace money 31 available through existing public or private training programs.

01  (c) To provide administration of the program, the council may use the 02 administrative entities of the substate service delivery areas. 03  (d) The council shall annually provide the department with financial and 04 performance reporting on the activities of the program and recommendations 05 concerning continuation of funding. 06  Sec. 23.15.660. DEFINITIONS. In AS 23.15.620 - 23.15.660, 07  (1) "council" means the Alaska Human Resource Investment Council 08 established in AS 44.19.620; 09  (2) "program" means the state training and employment program 10 established in AS 23.15.620 - 23.15.660; and 11  (3) "substate service delivery areas" means those areas designated by 12 the governor under 29 U.S.C. 1532. 13 * Sec. 3. AS 23.15.620, 23.15.625, 23.15.630, 23.15.635, 23.15.640, 23.15.645, 23.15.651, 14 and 23.15.660 are repealed June 30, 1998. 15 * Sec. 4. This Act takes effect July 1, 1996.