Bill Text 28th Legislature
- Session Laws
00 Enrolled HB 76
01 Relating to electronic filing of certain information with the Department of Labor and
02 Workforce Development; relating to fund solvency adjustments, rate increase reduction,
03 prohibition on the relief of certain charges, the unemployment trust fund account, and the
04 offset of certain unemployment compensation debt under the Alaska Employment Security
05 Act; relating to the definition of "covered unemployment compensation debt" in the Alaska
06 Employment Security Act; and providing for an effective date.
08 * Section 1. AS 23.05 is amended by adding a new section to read:
09 Sec. 23.05.055. Electronic filing. Notwithstanding any contrary provision of
10 the law, if the commissioner determines by order that it is in the public interest, the
11 commissioner may authorize electronic filing of certain information with the
12 department in a format prescribed by the department as an additional means of filing
01 under this title. If the commissioner authorizes electronic filing, the department shall
02 consider the electronic filing as equivalent to paper filing for purposes of compliance
03 with other requirements of this title. Electronic filings authorized under this section are
04 equivalent to paper filings for the purposes of civil or criminal penalties for violations
05 of this title or AS 11.
06 * Sec. 2. AS 23.20 is amended by adding a new section to read:
07 Sec. 23.20.021. Certain appropriations to the fund. In accordance with
08 AS 37.07 (Executive Budget Act), the legislature may appropriate money to the fund.
09 * Sec. 3. AS 23.20 is amended by adding a new section to article 3 to read:
10 Sec. 23.20.279. Prohibition on relief of certain charges to an employer's
11 account. (a) An employer's account may not be relieved of charges relating to a
12 payment that was made erroneously from the unemployment trust fund account
13 (AS 23.20.135(a)) if the department determines that
14 (1) the erroneous payment was made because the employer or an agent
15 of the employer was at fault for failing to respond timely or adequately to a
16 documented request from the department for information relating to the claim for
17 unemployment compensation; and
18 (2) the employer or an agent of the employer has established a pattern
19 of failing to respond timely or adequately to requests under (1) of this subsection.
20 (b) In this section,
21 (1) "erroneous payment" means a payment that, but for the failure by
22 the employer or an agent of the employer with respect to the claim for unemployment
23 compensation, would not have been made;
24 (2) "pattern of failing" means repeated documented failure by the
25 employer or the agent of the employer to respond, taking into consideration the
26 number of instances of failure in relation to the total volume of requests; however, an
27 employer or an agent of the employer that fails to respond as described in (a)(2) of this
28 section may not be determined to have engaged in a pattern of failure if the number of
29 failures during the year before the request is made is fewer than two or the percentage
30 of failures is less than two percent.
31 * Sec. 4. AS 23.20.290(c) is amended to read:
01 (c) The rate of contributions for each employer is a percentage of the average
02 benefit cost rate multiplied by the employer's experience factor set out in column C of
03 the table in this subsection opposite the employer's applicable rate class set out in
04 column A plus the fund solvency adjustment surcharge required under (f) of this
05 section. That percentage is 76 percent beginning January 1, 2009, and 73 percent
06 beginning January 1, 2010. However, the rate of contributions for an employer may
07 not be less than one percent or more than six and one-half percent. The rate of
08 contributions for an employer in rate class 21 may not be less than 5.4 percent. The
09 rate of contributions for an employer must be rounded to the nearest 1/100th of one
11 COLUMN B COLUMN C
12 COLUMN A Cumulative Experience
13 Rate Class Ratable Payroll Factor
14 at least but less than
15 (percent) (percent)
16 1 5 .40
17 2 5 10 .45
18 3 10 15 .50
19 4 15 20 .55
20 5 20 25 .60
21 6 25 30 .65
22 7 30 35 .70
23 8 35 40 .80
24 9 40 45 .90
25 10 45 50 1.00
26 11 50 55 1.00
27 12 55 60 1.10
28 13 60 65 1.20
29 14 65 70 1.30
30 15 70 75 1.35
31 16 75 80 1.40
01 17 80 85 1.45
02 18 85 90 1.50
03 19 90 95 1.55
04 20 95 99.99 1.60
05 21 99.99 1.65.
06 * Sec. 5. AS 23.20.290(f) is repealed and reenacted to read:
07 (f) An employer shall pay a fund solvency adjustment surcharge if the reserve
08 rate is less than three percent. The surcharge is a percentage equal to the difference
09 between three percent and the reserve rate, rounded to the nearest 1/100 of one
10 percent. An employer shall receive a fund solvency adjustment credit if the reserve
11 rate is greater than 3.3 percent. The credit is a percentage equal to the difference
12 between 3.3 percent and the reserve rate rounded to the nearest 1/100 of one percent.
13 The solvency surcharge may not be greater than 1.1 percent, and the solvency credit
14 may not be greater than 0.4 percent. However, an employer's fund solvency
15 adjustment surcharge may not increase more than 0.3 percent from one year to the
16 next year.
17 * Sec. 6. AS 23.20 is amended by adding a new section to read:
18 Sec. 23.20.291. Rate increase reductions. (a) When the most current average
19 high cost multiple published by the United States Department of Labor, Employment
20 and Training Administration, is 0.8 or above on September 30 in the year preceding
21 the year for which rates are being calculated, the commissioner shall consult with the
22 actuary in the department regarding the expected unemployment rate for the next tax
23 year, the expected number and amount of state funds needed to pay claims for state-
24 funded benefits for the next tax year, and the expected amount of state tax revenue.
25 Based on the actuary's advice and any other relevant information, the commissioner
26 may suspend, in whole or in part, any unemployment rate of contribution increases
27 that would have occurred for that year under the calculation of the rate of
28 contributions described in AS 23.20.290. If an increase of the rate of contribution
29 calculated under AS 23.20.290 is suspended, in whole or in part, the calculation of the
30 fund solvency adjustment surcharge as described in AS 23.20.290(f) for the
31 subsequent year must refer to the results of the last rate of contribution calculation for
01 which the increase was not suspended, in whole or in part, when determining the level
02 from which the fund solvency adjustment may not increase by more than 0.3 percent.
03 (b) In this section, "average high cost multiple" has the meaning given in 20
04 C.F.R. 606.3.
05 * Sec. 7. AS 23.20.390(f) is amended to read:
06 (f) In addition to the liability under (a) of this section for the amount of
07 benefits improperly paid, an individual who is disqualified from receipt of benefits
08 under AS 23.20.387 is liable to the department for a penalty in an amount equal to 50
09 percent of the benefits that were obtained by knowingly making a false statement or
10 misrepresenting a material fact, or knowingly failing to report a material fact, with the
11 intent to obtain or increase benefits under this chapter. [THE DEPARTMENT MAY,
12 UNDER REGULATIONS ADOPTED UNDER THIS CHAPTER, WAIVE THE
13 COLLECTION OF A PENALTY UNDER THIS SECTION.] The department shall
14 deposit into the unemployment trust fund account (AS 23.20.135(a)) a minimum
15 of 30 percent of the penalties collected because of benefits that were obtained by
16 knowingly making a false statement or misrepresenting a material fact, or
17 knowingly failing to report a material fact, with the intent to obtain or increase
18 benefits under this chapter [GENERAL FUND THE PENALTY THAT IT
20 * Sec. 8. AS 23.20 is amended by adding a new section to read:
21 Sec. 23.20.486. Participation in the federal offset program. In addition to
22 any remedies authorized by this chapter, the department may offset any covered
23 unemployment compensation debt against a claimant's federal income tax refund in
24 accordance with 26 U.S.C. 6402.
25 * Sec. 9. AS 23.20.520 is amended by adding a new paragraph to read:
26 (23) "covered unemployment compensation debt" means
27 (A) a past due debt for erroneous payment of unemployment
28 compensation under this chapter because of fraud or the person's failure to
29 report earnings that has become final under this chapter and that remains
31 (B) contributions due to the unemployment trust fund account
01 (AS 23.20.135(a)) for which a person is liable and that remain uncollected; and
02 (C) any penalties and interest assessed on the debt.
03 * Sec. 10. AS 23.20.291 is repealed July 1, 2016.
04 * Sec. 11. The uncodified law of the State of Alaska is amended by adding a new section to
06 APPLICABILITY. AS 23.20.279, added by sec. 3 of this Act, applies to overpaid
07 benefits established after October 21, 2013.
08 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to
10 TRANSITION: REGULATIONS. The Department of Labor and Workforce
11 Development may adopt regulations necessary to implement the changes made by this Act.
12 The regulations take effect under AS 44.62 (Administrative Procedure Act), but not before
13 July 1, 2013.
14 * Sec. 13. Section 12 of this Act takes effect immediately under AS 01.10.070(c).
15 * Sec. 14. Except as provided in sec. 13 of this Act, this Act takes effect July 1, 2013.
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