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CSSB 229(L&C): "An Act relating to employment contributions, to the calculation of unemployment insurance benefits, and to the state training and employment program; and providing for an effective date."

00 CS FOR SENATE BILL NO. 229(L&C)                                                                                         
01 "An Act relating to employment contributions, to the calculation of                                                     
02 unemployment insurance benefits, and to the state training and employment                                               
03 program; and providing for an effective date."                                                                          
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1.  FINDINGS.  The legislature finds that                                                                  
06   (1)  an inadequate number of jobs exist in this state to meet the needs of those                                      
07 seeking employment;                                                                                                     
08   (2)  many Alaskans are having difficulty finding jobs, especially in trying to                                        
09 meet the changing technology needs in this state;                                                                       
10   (3)  employer and employee contributions paid into the unemployment                                                   
11 insurance system are used for payment of compensation to unemployed workers and allocation                              
12 of a small portion of employment contributions paid by employees would provide money to                                 
13 develop a state training and employment program to meet the training needs of Alaskans;                                 
14   (4)  a state training and employment program would                                                                    
01   (A)  help prevent future claims against unemployment benefits;                                                       
02   (B)  foster new jobs by encouraging businesses to locate in the state due                                            
03 to availability of a skilled labor force and by minimizing employers' unemployment                                      
04 costs; and                                                                                                              
05   (C)  increase training opportunities to those workers severely affected                                              
06 by the fluctuations in the state economy or technological changes in the workplace in                                   
07 the state;                                                                                                              
08   (5)  it would be beneficial to the state for state training and employment                                            
09 programs funded by the state training and employment program to supplement, but not to                                  
10 displace, programs funded by money available to a training entity for public or private                                 
11 training, and not to replace, parallel, compete with, or duplicate existing federally approved,                         
12 jointly administered apprenticeship and training programs;                                                              
13   (6)  it would be beneficial to the state to make the state training and                                               
14 employment program a permanent state program to benefit Alaska workers, businesses, and                                 
15 industry.                                                                                                               
16    * Sec. 2.  AS 23.15 is amended by adding new sections to read:                                                       
17                 ARTICLE 4A.  STATE TRAINING AND EMPLOYMENT PROGRAM.                                                     
18  Sec. 23.15.620.  STATE TRAINING AND EMPLOYMENT PROGRAM.                                                               
19 There is created in the department a program to finance and award grants to                                             
20 employment assistance and training entities.  Employment assistance and training                                        
21 entities shall give appropriate state agencies full access to accounting records                                        
22 concerning grants received to assure compliance with program standards.                                                 
23  Sec. 23.15.625.  EMPLOYMENT ASSISTANCE AND TRAINING                                                                   
24 PROGRAM ACCOUNT.  The employment assistance and training program account                                                
25 is established in the general fund.  The commissioner of administration shall separately                                
26 account for money collected under AS 23.15.630 that the department deposits in the                                      
27 general fund. The annual estimated balance in the account may be appropriated by the                                    
28 legislature to the department to implement AS 23.15.620 - 23.15.660.  The legislature                                   
29 may appropriate the lapsing balance of the account to the unemployment compensation                                     
30 fund established in AS 23.20.130.                                                                                       
31  Sec. 23.15.630.  SPECIAL EMPLOYEE UNEMPLOYMENT CREDIT AND                                                             
01 CONTRIBUTIONS FOR PROGRAM.  (a)  In the manner provided in AS 23.20, the                                                
02 department shall collect from each employee an amount equal to one-tenth of one                                         
03 percent of the wages, as set out in AS 23.20.175, on which the employee is required                                     
04 to make contributions under AS 23.20.290(d).  The department shall remit to the                                         
05 Department of Revenue, in accordance with AS 37.10.050, money collected under this                                      
06 subsection.                                                                                                             
07  (b)  Notwithstanding AS 23.20.290(d), the department shall credit each                                                
08 employee with an amount equal to the amount collected from the employee under (a)                                       
09 of this section against unemployment contributions owed by the employee under                                           
10 AS 23.20.                                                                                                               
11  (c)  The department shall assess and collect, under AS 23.20.185 - 23.20.275,                                         
12 interest and penalties for delinquent reports and payments due under this section.                                      
13 Interest and penalties collected shall be handled in accordance with AS 23.20.130(d).                                   
14  Sec. 23.15.635.  PEOPLE TO BE SERVED.  Within the limits of its grant, an                                             
15 employment assistance and training entity receiving a grant under AS 23.15.651 shall                                    
16 provide services set out in AS 23.15.640 to state residents who, immediately before                                     
17 beginning training or receiving benefits under a grant financed by this program,                                        
18   (1)  are unemployed and                                                                                              
19   (A)  are receiving unemployment insurance benefits; or                                                              
20   (B)  have exhausted the right to unemployment insurance                                                             
21 benefits within the past three years;                                                                                   
22   (2)  are employed, but liable to be displaced within the next six months                                             
23 because of                                                                                                              
24   (A)  reductions in overall employment within a business;                                                            
25   (B)  elimination of the worker's current job; or                                                                    
26   (C)  a change in conditions of employment requiring that, to                                                        
27 remain employed, the employee must learn substantially different skills that the                                        
28 employee does not now possess; or                                                                                       
29   (3)  have worked in a position covered by AS 23.20 at any time during                                                
30 the last three years, and are not currently eligible for unemployment insurance benefits                                
31 because                                                                                                                 
01   (A)  their employment has been seasonal, temporary, part-time,                                                      
02 or marginal;                                                                                                            
03   (B)  their qualifying wages are insufficient because of limited                                                     
04 job opportunity; or                                                                                                     
05   (C)  they are employed but, because they are underemployed,                                                         
06 they are in need of employment assistance and training to obtain full                                                   
07 employment.                                                                                                             
08  Sec. 23.15.640.  SERVICES FOR ELIGIBLE PEOPLE.  Subject to the limits                                                 
09 of its grant, an entity receiving a grant under AS 23.15.651 shall provide one or more                                  
10 program elements.  The program elements include                                                                         
11   (1)  industry-specific training;                                                                                     
12   (2)  on-the-job training;                                                                                            
13   (3)  institutional or classroom job-linked training;                                                                 
14   (4)  support services, including allowances;                                                                         
15   (5)  relocation assistance; or                                                                                       
16   (6)  provisions of necessary tools, work-related clothing, safety gear, or                                           
17 other necessities to obtain or retain employment.                                                                       
18  Sec. 23.15.645.  DUTIES AND POWERS OF THE DEPARTMENT.  (a)  The                                                       
19 department shall award a grant to the council to                                                                        
20   (1)  administer a state training and employment program; and                                                         
21   (2)  award grants to qualified entities.                                                                             
22  (b)  When a grant is awarded to the council, the department shall annually                                            
23 provide to the council a priority list of targeted projects or services, based on                                       
24 unemployment  statistics, unemployment insurance claims, occupational and industrial                                    
25 projections, availability of other training and employment programs, and other relevant                                 
26 data.  The department shall also provide annually to the council a priority list of                                     
27 criteria for eligibility to maximize services to those people most in need of training                                  
28 under AS 23.15.620 - 23.15.660.  In developing the priority list for targeted projects                                  
29 and services, the department shall solicit comments from the Department of                                              
30 Community and Regional Affairs, Department of Education, Department of Commerce                                         
31 and Economic Development, University of Alaska, organized labor, the council, and                                       
01 the administrative entities of the substate service delivery areas established for the                                  
02 council.  The department shall give preference to projects and services that train                                      
03 individuals in industries identified in the resident hire report required under                                         
04 AS 36.10.130 as employing a disproportionate percentage of nonresident individuals.                                     
05  (c)  The department may adopt regulations necessary to implement this chapter.                                        
06  (d)  The council shall establish grant administration requirements including                                          
07 accounting procedures that apply to qualified entities and their grantees.                                              
08  (e)  In making a grant under this section, the council shall require that the                                         
09 qualified entity and grantees of the qualified entity limit the amount of the grant                                     
10 proceeds spent on administration so that the total spent on administration from the                                     
11 proceeds of the employment assistance and training program account, including                                           
12 amounts spent by the council itself, does not exceed 20 percent.  The amount collected                                  
13 and remitted in accordance with the shared cost requirements of the federal Office of                                   
14 Management and Budget Circular A-87 entitled "Cost Principles for State and Local                                       
15 Governments" is not considered an amount spent on administration under this                                             
16 subsection.                                                                                                             
17  Sec. 23.15.651.  DUTIES OF ALASKA HUMAN RESOURCE INVESTMENT                                                           
18 COUNCIL; GRANTS; ELIGIBLE ENTITIES.  (a)  In implementing this program                                                  
19 under a grant received under AS 23.15.645, and subject to the limit of its grant the                                    
20 council shall award grants, in accordance with the priority list established by the                                     
21 department under AS 23.15.645(b) to employment assistance and training entities.  A                                     
22 training entity is eligible for a grant under this section if the entity meets program                                  
23 requirements and can demonstrate that                                                                                   
24   (1)  its accounting systems include controls adequate to check the                                                   
25 accuracy and reliability of accounting data, promote operating efficiency, and assure                                   
26 compliance with program requirements and generally accepted accounting principles;                                      
27 and                                                                                                                     
28   (2)  its activities do not replace or compete in any way with a federally                                            
29 approved, jointly administered apprenticeship program or any other existing training                                    
30 programs.                                                                                                               
31  (b)  The council may not award a grant if the grant would displace money                                              
01 available through existing public or private training programs.                                                         
02  (c)  To provide administration of the program, the council may use the                                                
03 administrative entities of the substate service delivery areas.                                                         
04  (d)  The council shall annually provide the department with financial and                                             
05 performance reporting on the activities of the program and recommendations                                              
06 concerning continuation of funding.                                                                                     
07  Sec. 23.15.660.  DEFINITIONS.  In AS 23.15.620 - 23.15.660,                                                           
08   (1)  "council" means the Alaska Human Resource Investment Council                                                    
09 established in AS 44.19.620;                                                                                            
10   (2) "program" means the state training and employment program                                                        
11 established in AS 23.15.620 - 23.15.660; and                                                                            
12   (3)  "substate service delivery areas" means those areas designated by                                               
13 the governor under 29 U.S.C. 1532.                                                                                      
14    * Sec. 3.  AS 23.20.290(c) is amended to read:                                                                       
15  (c)  Beginning January 1, 1997 [JANUARY 1, 1981], the rate of contributions                                         
16 for each employer is 80 [82] percent of the average benefit cost rate multiplied by the                               
17 employer's experience factor set out in column C of the table in this subsection                                        
18 opposite the employer's applicable rate class set out in column A plus the fund                                         
19 solvency adjustment required under (f) of this section.  However, the rate of                                           
20 contributions for an employer may not be less than one percent or more than six and                                     
21 one-half percent.  The rate of contributions for an employer in rate class 21 may not                                   
22 be less than 5.4 percent.  The rate of contributions for an employer must be rounded                                    
23 to the nearest 1/100th [ONE-HUNDREDTH] of one percent.                                                                
24  COLUMN ACOLUMN B      COLUMN C                                                                                         
25    Rate ClassCumulative        Experience                                                                               
26 Ratable Payroll          Factor                                                                                         
27     at least  but less than                                                                                             
28     (percent)     (percent)                                                                                             
29   1  5 .40                                                                                                              
30   2 5 10 .45                                                                                                            
31   3 10 15 .50                                                                                                           
01   5 20 25 .60                                                                                                           
02   6 25 30 .65                                                                                                           
03   7 30 35 .70                                                                                                           
04   8 35 40 .80                                                                                                           
05   9 40 45 .90                                                                                                           
06   10 45 50 1.00                                                                                                         
07   11 50 55 1.00                                                                                                         
08   12 55 60 1.10                                                                                                         
09   13 60 65 1.20                                                                                                         
10   14 65 70 1.30                                                                                                         
11   15 70 75 1.35                                                                                                         
12   16 75 80 1.40                                                                                                         
13   17 80 85 1.45                                                                                                         
14   18 85 90 1.50                                                                                                         
15   19 90 95 1.55                                                                                                         
16   20 95 99.99 1.60                                                                                                      
17   21 99.99  1.65.                                                                                                       
18    * Sec. 4.  AS 23.20.290(d) is amended to read:                                                                       
19  (d)  Beginning January 1, 1997 [JANUARY 1, 1981], and for each succeeding                                           
20 year thereafter, the rate of contributions payable by each employee of an employer                                      
21 who is subject to AS 23.20.165 is 20 [18] percent of the average benefit cost rate as                                 
22 determined in (e) of this section rounded to the nearest 1/100th [ONE-TENTH] of one                                   
23 percent.  However, the rate of contributions for an employee may not be less than one-                                  
24 half percent or more than one percent.                                                                                  
25    * Sec. 5.  AS 23.20.350(d) is amended to read:                                                                       
26  (d)  An individual who is eligible under (a) of this section is entitled to receive                                   
27 the weekly benefit amount set out in column (B) of the table in this subsection that is                                 
28 opposite the amount set out in column (A) of the individual's base period wages                                         
29 determined under (c) of this section:                                                                                   
30    (A)      (B)                                                                                                         
31   Base Period Wages     Weekly Benefit                                                                                  
01               Amount                                                                                                    
02      At least  But less than                                                                                            
03   0 1,000 $  0                                                                                                          
04   1,000 1,250 44                                                                                                        
05   1,250 1,500 46                                                                                                        
06   1,500 1,750 48                                                                                                        
07   1,750 2,000 50                                                                                                        
08   2,000 2,250 52                                                                                                        
09   2,250 2,500 54                                                                                                        
10   2,500 2,750 56                                                                                                        
11   2,750 3,000 58                                                                                                        
12   3,000 3,250 60                                                                                                        
13   3,250 3,500 62                                                                                                        
14   3,500 3,750 64                                                                                                        
15   3,750 4,000 66                                                                                                        
16   4,000 4,250 68                                                                                                        
17   4,250 4,500 70                                                                                                        
18   4,500 4,750 72                                                                                                        
19   4,750 5,000 74                                                                                                        
20   5,000 5,250 76                                                                                                        
21   5,250 5,500 78                                                                                                        
22   5,500 5,750 80                                                                                                        
23   5,750 6,000 82                                                                                                        
24   6,000 6,250 84                                                                                                        
25   6,250 6,500 86                                                                                                        
26   6,500 6,750 88                                                                                                        
27   6,750 7,000 90                                                                                                        
28   7,000 7,250 92                                                                                                        
29   7,250 7,500 94                                                                                                        
30   7,500 7,750 96                                                                                                        
31   7,750 8,000 98                                                                                                        
01   8,000 8,250 100                                                                                                       
02   8,250 8,500 102                                                                                                       
03   8,500 8,750 104                                                                                                       
04   8,750 9,000 106                                                                                                       
05   9,000 9,250 108                                                                                                       
06   9,250 9,500 110                                                                                                       
07   9,500 9,750 112                                                                                                       
08   9,750 10,000 114                                                                                                      
09   10,000 10,250 116                                                                                                     
10   10,250 10,500 118                                                                                                     
11   10,500 10,750 120                                                                                                     
12   10,750 11,000 122                                                                                                     
13   11,000 11,250 124                                                                                                     
14   11,250 11,500 126                                                                                                     
15   11,500 11,750 128                                                                                                     
16   11,750 12,000 130                                                                                                     
17   12,000 12,250 132                                                                                                     
18   12,250 12,500 134                                                                                                     
19   12,500 12,750 136                                                                                                     
20   12,750 13,000 138                                                                                                     
21   13,000 13,250 140                                                                                                     
22   13,250 13,500 142                                                                                                     
23   13,500 13,750 144                                                                                                     
24   13,750 14,000 146                                                                                                     
25   14,000 14,250 148                                                                                                     
26   14,250 14,500 150                                                                                                     
27   14,500 14,750 152                                                                                                     
28   14,750 15,000 154                                                                                                     
29   15,000 15,250 156                                                                                                     
30   15,250 15,500 158                                                                                                     
31   15,500 15,750 160                                                                                                     
01   15,750 16,000 162                                                                                                     
02   16,000 16,250 164                                                                                                     
03   16,250 16,500 166                                                                                                     
04   16,500 16,750 168                                                                                                     
05   16,750 17,000 170                                                                                                     
06   17,000 17,250 172                                                                                                     
07   17,250 17,500 174                                                                                                     
08   17,500 17,750 176                                                                                                     
09   17,750 18,000 178                                                                                                     
10   18,000 18,250 180                                                                                                     
11   18,250 18,500 182                                                                                                     
12   18,500 18,750 184                                                                                                     
13   18,750 19,000 186                                                                                                     
14   19,000 19,250 188                                                                                                     
15   19,250 19,500 190                                                                                                     
16   19,500 19,750 192                                                                                                     
17   19,750 20,000 194                                                                                                     
18   20,000 20,250 196                                                                                                     
19   20,250 20,500 198                                                                                                     
20   20,500 20,750 200                                                                                                     
21   20,750 21,000 202                                                                                                     
22   21,000 21,250 204                                                                                                     
23   21,250 21,500 206                                                                                                     
24   21,500 21,750 208                                                                                                     
25   21,750 22,000 210                                                                                                     
26   22,000 22,250 212                                                                                                     
27   22,250 22,500 214 [212]                                                                                             
28   22,500 22,750 216                                                                                                    
29   22,750 23,000 218                                                                                                     
30   23,000 23,250 220                                                                                                     
31   23,250 23,500 222                                                                                                     
01   23,500 23,750 224                                                                                                     
02   23,750 24,000 226                                                                                                     
03   24,000 24,250 228                                                                                                     
04   24,250 24,500 230                                                                                                     
05   24,500 24,750 232                                                                                                     
06   24,750 25,000 234                                                                                                     
07   25,000 25,250 236                                                                                                     
08   25,250 25,500 238                                                                                                     
09   25,500 25,750 240                                                                                                     
10   25,750 26,000 242                                                                                                     
11   26,000 26,250 244                                                                                                     
12   26,250 26,500 246                                                                                                     
13   26,500 26,750 248                                                                                                     
14   26,750  248.                                                                                                         
15    * Sec. 6.  AS 23.15.620, 23.15.625, 23.15.630, 23.15.635, 23.15.640, 23.15.645, 23.15.651,                           
16 and 23.15.660 are repealed June 30, 1998.                                                                               
17    * Sec. 7.  Sections 3 - 5 of this Act apply to benefit years for unemployment insurance                              
18 beginning on or after January 1, 1997.                                                                                  
19    * Sec. 8.  Sections 1 and 2 of this Act take effect July 1, 1996.                                                    
20    * Sec. 9.  Sections 3 - 5 and 7 of this Act take effect January 1, 1997.