EMPLOYER CONTRIBUTIONS

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CS FOR SENATE BILL NO. 217(L&C)

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - SECOND SESSION

BY THE SENATE LABOR AND COMMERCE COMMITTEE

Offered: 4/15/26
Referred: Finance

Sponsor(s): SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
A BILL

FOR AN ACT ENTITLED

"An Act increasing contributions to the Department of Labor and Workforce 1
Development for the state training and employment program; relating to employer and 2
employee contributions to the unemployment compensation fund; establishing an 3
employer contribution for the state training and employment program; relating to 4
unemployment benefits; relating to the qualifications for instructors at the Alaska 5
Vocational Technical Center; relating to employment security contributions for certain 6
sports officials; relating to exemptions from the Alaska Workers' Compensation Act; 7
relating to employee unemployment tax credits; and providing for an effective date." 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 9
* Section 1. AS 12.62.400(a) is amended by adding a new paragraph to read: 10
(26) a position as an instructor at the Alaska Vocational Technical 11
Center. 12
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* Sec. 2. AS 23.15.630(a) is amended to read: 1
(a) In the manner provided in AS 23.20, the department shall collect from 2
each employee an amount equal to .20 [ONE-TENTH OF ONE] percent of the wages, 3
as set out in AS 23.20.175, on which the employee is required to make contributions 4
under AS 23.20.290(d). The department shall remit to the Department of Revenue, in 5
accordance with AS 37.10.050, money collected under this subsection. 6
* Sec. 3. AS 23.15.630(a), as amended by sec. 2 of this Act, is amended to read: 7
(a) In the manner provided in AS 23.20, the department shall collect from 8
each employee an amount equal to .20 percent of the wages, as set out in 9
AS 23.20.175 [, ON WHICH THE EMPLOYEE IS REQUIRED TO MAKE 10
CONTRIBUTIONS UNDER AS 23.20.290(d)]. The department shall remit to the 11
Department of Revenue, in accordance with AS 37.10.050, money collected under this 12
subsection. 13
* Sec. 4. AS 23.15.630 is amended by adding new subsections to read: 14
(d) In the manner provided in AS 23.20, the department shall collect from 15
each employer an amount equal to 0.4 percent of the wages, as set out in 16
AS 23.20.175, on which the employer is required to make contributions under 17
AS 23.20.290(c). The department shall remit to the Department of Revenue, in 18
accordance with AS 37.10.050, money collected under this subsection. The legislature 19
may appropriate the revenue collected under this subsection to the employment 20
assistance and training program account established in AS 23.15.625. 21
(e) The department shall credit against the amount owed by an employer under 22
(d) of this section an amount equal to the contributions paid by the employer under 23
AS 23.20.290(c). If the amount of the credit equals or exceeds the amount owed under 24
(d) of this section, the employer's liability under (d) of this section is zero. 25
* Sec. 5. AS 23.15.835(a) is amended to read: 26
(a) In the manner provided in AS 23.20 and for the benefit of the program, the 27
department shall collect from each employee an amount equal to .25 percent of the 28
wages, as set out in AS 23.20.175 [, ON WHICH THE EMPLOYEE IS REQUIRED 29
TO MAKE CONTRIBUTIONS UNDER AS 23.20.290(d)]. The department shall 30
remit to the Department of Revenue, in accordance with AS 37.10.050, money 31
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collected under this subsection. 1
* Sec. 6. AS 23.15 is amended by adding a new section to read: 2
Sec. 23.15.845. Background checks for Alaska Vocational Technical 3
Center instructors. An individual who serves as an instructor at the Alaska 4
Vocational Technical Center shall submit to the Alaska Vocational Technical Center 5
the individual's fingerprints and provide the fees required by the Department of Public 6
Safety under AS 12.62.160 for criminal justice information and a national criminal 7
history record check. The Alaska Vocational Technical Center shall forward the 8
fingerprints and fees to the Department of Public Safety to obtain a report of criminal 9
justice information under AS 12.62 and a national criminal history record check under 10
AS 12.62.400 for the purpose of determining whether the individual is qualified to 11
serve as an instructor. 12
* Sec. 7. AS 23.20.135(b) is amended to read: 13
(b) The department, or a designee of the department, shall immediately 14
deposit, upon receipt, all money payable to the fund in the clearing account. Refunds 15
of contributions erroneously collected and payable under AS 23.20.225 and 16
23.20.526(a)(11) may be paid from the clearing account in the same manner, or from 17
the training and building fund. Interest and penalty payments may not be refunded 18
from the unemployment compensation fund. After clearance, all money in the clearing 19
account [, EXCEPT FOR THAT PORTION OF EMPLOYEE CONTRIBUTIONS 20
UNDER AS 23.20.290(d) USED TO PAY INTEREST ON ADVANCES RECEIVED 21
UNDER AS 23.20.140,] shall be immediately deposited with the United States 22
Secretary of the Treasury to the credit of the account of this state in the unemployment 23
trust fund established and maintained under 42 U.S.C. 1104 (sec. 904, Social Security 24
Act), as amended. 25
* Sec. 8. AS 23.20.290(c) is amended to read: 26
(c) The rate of contributions for each employer is a percentage of the average 27
benefit cost rate multiplied by the employer's experience factor set out in column C of 28
the table in this subsection opposite the employer's applicable rate class set out in 29
column A plus the fund solvency adjustment surcharge required under (f) of this 30
section. That percentage is 76 percent beginning January 1, 2009, [AND] 73 percent 31
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beginning January 1, 2010, and 100 percent beginning January 1, 2027. 1
Notwithstanding any other provision of this chapter, including the application of 2
credits [HOWEVER], the rate of contributions for an employer 3
(1) may not exceed [BE LESS THAN ONE PERCENT OR MORE 4
THAN] six and one-half percent; 5
(2) may not be less than zero percent; 6
(3) with less than four quarters of experience may not be less than 7
one percent; 8
(4) [. THE RATE OF CONTRIBUTIONS FOR AN EMPLOYER] in 9
rate class 21 may not be less than 5.4 percent; and 10
(5) [. THE RATE OF CONTRIBUTIONS FOR AN EMPLOYER] 11
must be rounded to the nearest 1/100th of one percent. 12
COLUMN B COLUMN C 13
COLUMN A Cumulative Experience 14
Rate Class Ratable Payroll Factor 15
at least but less than 16
(percent) (percent) 17
1 5 .40 18
2 5 10 .45 19
3 10 15 .50 20
4 15 20 .55 21
5 20 25 .60 22
6 25 30 .65 23
7 30 35 .70 24
8 35 40 .80 25
9 40 45 .90 26
10 45 50 1.00 27
11 50 55 1.00 28
12 55 60 1.10 29
13 60 65 1.20 30
14 65 70 1.30 31
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15 70 75 1.35 1
16 75 80 1.40 2
17 80 85 1.45 3
18 85 90 1.50 4
19 90 95 1.55 5
20 95 99.99 1.60 6
21 99.99 1.65. 7
* Sec. 9. AS 23.20.350(d) is amended to read: 8
(d) An individual who is eligible under (a) of this section is entitled to receive 9
the weekly benefit amount set out in column (B) of the table in this subsection that is 10
opposite the amount set out in column (A) of the individual's base period wages 11
determined under (c) of this section: 12
(A) (B) 13
Base Period Wages Weekly Benefit 14
Amount 15
At least But less than 16
0 2,500 $ 0 17
2,500 2,750 56 18
2,750 3,000 58 19
3,000 3,250 60 20
3,250 3,500 62 21
3,500 3,750 64 22
3,750 4,000 66 23
4,000 4,250 68 24
4,250 4,500 70 25
4,500 4,750 72 26
4,750 5,000 74 27
5,000 5,250 76 28
5,250 5,500 78 29
5,500 5,750 80 30
5,750 6,000 82 31
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6,000 6,250 84 1
6,250 6,500 86 2
6,500 6,750 88 3
6,750 7,000 90 4
7,000 7,250 92 5
7,250 7,500 94 6
7,500 7,750 96 7
7,750 8,000 98 8
8,000 8,250 100 9
8,250 8,500 102 10
8,500 8,750 104 11
8,750 9,000 106 12
9,000 9,250 108 13
9,250 9,500 110 14
9,500 9,750 112 15
9,750 10,000 114 16
10,000 10,250 116 17
10,250 10,500 118 18
10,500 10,750 120 19
10,750 11,000 122 20
11,000 11,250 124 21
11,250 11,500 126 22
11,500 11,750 128 23
11,750 12,000 130 24
12,000 12,250 132 25
12,250 12,500 134 26
12,500 12,750 136 27
12,750 13,000 138 28
13,000 13,250 140 29
13,250 13,500 142 30
13,500 13,750 144 31
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13,750 14,000 146 1
14,000 14,250 148 2
14,250 14,500 150 3
14,500 14,750 152 4
14,750 15,000 154 5
15,000 15,250 156 6
15,250 15,500 158 7
15,500 15,750 160 8
15,750 16,000 162 9
16,000 16,250 164 10
16,250 16,500 166 11
16,500 16,750 168 12
16,750 17,000 170 13
17,000 17,250 172 14
17,250 17,500 174 15
17,500 17,750 176 16
17,750 18,000 178 17
18,000 18,250 180 18
18,250 18,500 182 19
18,500 18,750 184 20
18,750 19,000 186 21
19,000 19,250 188 22
19,250 19,500 190 23
19,500 19,750 192 24
19,750 20,000 194 25
20,000 20,250 196 26
20,250 20,500 198 27
20,500 20,750 200 28
20,750 21,000 202 29
21,000 21,250 204 30
21,250 21,500 207 [206] 31
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21,500 21,750 209 [208] 1
21,750 22,000 212 [210] 2
22,000 22,250 214 [212] 3
22,250 22,500 216 [214] 4
22,500 22,750 219 [216] 5
22,750 23,000 221 [218] 6
23,000 23,250 224 [220] 7
23,250 23,500 226 [222] 8
23,500 23,750 228 [224] 9
23,750 24,000 231 [226] 10
24,000 24,250 233 [228] 11
24,250 24,500 236 [230] 12
24,500 24,750 238 [232] 13
24,750 25,000 240 [234] 14
25,000 25,250 243 [236] 15
25,250 25,500 245 [238] 16
25,500 25,750 248 [240] 17
25,750 26,000 250 [242] 18
26,000 26,250 252 [244] 19
26,250 26,500 255 [246] 20
26,500 26,750 257 [248] 21
26,750 27,000 260 [250] 22
27,000 27,250 262 [252] 23
27,250 27,500 264 [254] 24
27,500 27,750 267 [256] 25
27,750 28,000 269 [258] 26
28,000 28,250 272 [260] 27
28,250 28,500 274 [262] 28
28,500 28,750 276 [264] 29
28,750 29,000 279 [266] 30
29,000 29,250 281 [268] 31
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29,250 29,500 284 [270] 1
29,500 29,750 286 [272] 2
29,750 30,000 288 [274] 3
30,000 30,250 291 [276] 4
30,250 30,500 293 [278] 5
30,500 30,750 296 [280] 6
30,750 31,000 298 [282] 7
31,000 31,250 300 [284] 8
31,250 31,500 303 [286] 9
31,500 31,750 305 [288] 10
31,750 32,000 308 [290] 11
32,000 32,250 310 [292] 12
32,250 32,500 313 [294] 13
32,500 32,750 315 [296] 14
32,750 33,000 317 [298] 15
33,000 33,250 320 [300] 16
33,250 33,500 322 [302] 17
33,500 33,750 325 [304] 18
33,750 34,000 327 [306] 19
34,000 34,250 329 [308] 20
34,250 34,500 332 [310] 21
34,500 34,750 334 [312] 22
34,750 35,000 337 [314] 23
35,000 35,250 339 [316] 24
35,250 35,500 341 [318] 25
35,500 35,750 344 [320] 26
35,750 36,000 346 [322] 27
36,000 36,250 349 [324] 28
36,250 36,500 351 [326] 29
36,500 36,750 353 [328] 30
36,750 37,000 356 [330] 31
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37,000 37,250 358 [332] 1
37,250 37,500 361 [334] 2
37,500 37,750 363 [336] 3
37,750 38,000 365 [338] 4
38,000 38,250 368 [340] 5
38,250 38,500 370 [342] 6
38,500 38,750 373 [344] 7
38,750 39,000 375 [346] 8
39,000 39,250 377 [348] 9
39,250 39,500 380 [350] 10
39,500 39,750 382 [352] 11
39,750 40,000 385 [354] 12
40,000 40,250 387 [356] 13
40,250 40,500 389 [358] 14
40,500 40,750 392 [360] 15
40,750 41,000 394 [362] 16
41,000 41,250 397 [364] 17
41,250 41,500 399 [366] 18
41,500 41,750 401 [368] 19
41,750 42,000 404 [370] 20
42,000 42,250 406 21
42,250 42,500 409 22
42,500 42,750 411 23
42,750 43,000 413 24
43,000 43,250 416 25
43,250 43,500 418 26
43,500 43,750 421 27
43,750 44,000 423 28
44,000 44,250 425 29
44,250 44,500 428 30
44,500 44,750 430 31
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44,750 45,000 433 1
45,000 45,250 435 2
45,250 45,500 438 3
45,500 45,750 440 4
45,750 46,000 442 5
46,000 46,250 445 6
46,250 46,500 447 7
46,500 46,750 450 8
46,750 47,000 452 9
47,000 47,250 454 10
47,250 47,500 457 11
47,500 47,750 459 12
47,750 48,000 462 13
48,000 48,250 464 14
48,250 48,500 466 15
48,500 48,750 469 16
48,750 49,000 470 17
49,000 470 [370]. 18
* Sec. 10. AS 23.20.350 is amended by adding a new subsection to read: 19
(h) On January 1 of each year, the department shall increase the maximum 20
base period wages in (d) of this section by a percentage equal to the percentage 21
increase in the base of contributions calculated under AS 23.20.175 in comparison to 22
the base contributions calculated for the prior year. The new base period wage amount 23
shall be rounded to the nearest $250. The department shall increase the corresponding 24
weekly benefit amount in (d) of this section by $2 for each $250 increase in base 25
period wages. The department may not decrease the base period wage amount of the 26
weekly benefit amount. 27
* Sec. 11. AS 23.20.526(a) is amended to read: 28
(a) In this chapter, unless the context otherwise requires, "employment" does 29
not include 30
(1) domestic service in a private home, except as provided in 31
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AS 23.20.525(a)(13); 1
(2) newsboys' services in selling or distributing newspapers on the 2
street or from house to house; 3
(3) service not in the course of the employing unit's trade or business 4
performed in a calendar quarter by an individual, unless the cash remuneration paid 5
for the service is $50 or more and the service is performed by an individual who is 6
regularly employed by the employing unit to perform the service; an individual is here 7
considered to be regularly employed to perform service not in the course of an 8
employing unit's trade or business during a calendar quarter only if the individual 9
performs the service for some portion of the day on each of 24 days during the quarter 10
or during the preceding calendar quarter; 11
(4) service performed by an individual in the employ of the 12
individual's 13
(A) son, daughter, or spouse; 14
(B) parent or legal guardian if the individual was under the age 15
of 21 years and a full-time student during eight of the last 12 months and 16
intends to resume full-time student status within the next four months; and 17
(C) mother or father if the service is performed by a child under 18
the age of 18; 19
(5) service with respect to which unemployment insurance is payable 20
under an unemployment insurance program established by an Act of Congress; 21
(6) service performed in the employ of a foreign government including 22
service as a consular or other officer or employee or a nondiplomatic representative; 23
(7) service performed in the employ of an instrumentality wholly 24
owned by a foreign government if 25
(A) the service is of a character similar to that performed in 26
foreign countries by employees of the United States government or its 27
instrumentalities; and 28
(B) the department finds that the United States Secretary of 29
State has certified to the United States Secretary of the Treasury that the 30
foreign government, with respect to whose instrumentality exemption is 31
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claimed, grants an equivalent exemption with respect to similar service 1
performed in the foreign country by employees of the United States 2
government and its instrumentalities; 3
(8) service performed by an insurance agent, insurance solicitor, real 4
estate broker, real estate salesperson, or securities salesperson to the extent the person 5
is compensated by commission, unless the service is required to be covered under the 6
Federal Unemployment Tax Act, as amended; 7
(9) notwithstanding AS 23.20.525(a)(9), service performed by an 8
officer or member of the crew of an American vessel on or in connection with the 9
vessel, if the operating office, from which the operations of the vessel operating on 10
navigable waters inside or inside and outside the United States are ordinarily and 11
regularly supervised, managed, directed, and controlled, is outside this state; 12
(10) service performed on or in connection with a vessel not an 13
American vessel by an individual if the individual performed service on and in 14
connection with the vessel when outside the United States; 15
(11) service performed in the employ of the United States government 16
or an instrumentality of the United States exempt under the Constitution of the United 17
States from the contributions imposed by this chapter, except that to the extent that the 18
Congress of the United States permits states to require an instrumentality of the United 19
States to make payments into an unemployment fund under a state employment 20
security law, all of the provisions of this chapter apply to the instrumentalities, and to 21
service performed for the instrumentalities in the same manner, to the same extent, and 22
on the same terms as to all other employers, employing units, individuals, and service; 23
however, if this state is not certified for any year by the United States Secretary of 24
Labor under 26 U.S.C. 3304(c) (Federal Unemployment Tax Act, Internal Revenue 25
Code), the payments required of the instrumentalities with respect to the year shall be 26
refunded by the department from the fund in the same manner and within the same 27
period as is provided in AS 23.20.225 with respect to contributions erroneously 28
collected; 29
(12) service performed in the employ of another state, or political 30
subdivision of another state, or an instrumentality of another state or political 31
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subdivision that is wholly owned by another state or its political subdivision, or a 1
service performed in the employ of an instrumentality of another state or its political 2
subdivisions to the extent that the instrumentality is, with respect to the service, 3
exempt under the Constitution of the United States from the tax imposed by 26 U.S.C. 4
3301 (Federal Unemployment Tax Act, Internal Revenue Code); 5
(13) service performed in the employ of an international organization; 6
(14) service covered by an election approved by the agency charged 7
with the administration of any other state or federal employment security law, in 8
accordance with an arrangement under AS 23.20.090(a) during the effective period of 9
the election; 10
(15) service performed by an individual in agricultural labor, except as 11
provided in AS 23.20.525(a)(14); the term "agricultural labor" means remunerated 12
service 13
(A) on a farm, in the employ of any person in connection with 14
cultivating the soil, or in connection with raising or harvesting any agricultural 15
or horticultural commodity, including the raising, shearing, feeding, caring for, 16
training, and management of livestock, bees, poultry, and fur-bearing animals 17
and wildlife; 18
(B) in the employ of the owner or tenant or other operator of a 19
farm, in connection with the operation, management, conservation, 20
improvement, or maintenance of the farm and its tools and equipment, or in 21
salvaging timber or clearing land of brush and other debris left by a hurricane, 22
if the major part of the service is performed on a farm; 23
(C) in connection with the production or harvesting of any 24
commodity defined as an agricultural commodity in 12 U.S.C. 1141j (Sec. 25
15(g), Agricultural Marketing Act), as amended, or in connection with the 26
operation or maintenance of ditches, canals, reservoirs, or waterways, not 27
owned or operated for profit, used exclusively for supplying and storing water 28
for farming purposes; 29
(D) in the employ of the operator of a farm in handling, 30
planting, drying, packing, packaging, processing, freezing, grading, storing, or 31
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delivering to storage or to market or to a carrier for transportation to market, in 1
its unmanufactured state, any agricultural or horticultural commodity; but only 2
if the operator produced more than one-half of the commodity with respect to 3
which the service is performed except as stated in (b) of this section; 4
(E) in the employ of a group of operators of farms, or a 5
cooperative organization of which the operators are members, in the 6
performance of service described in (D) of this paragraph, but only if the 7
operators produced more than one-half of the commodity with respect to which 8
the service is performed; 9
(F) on a farm operated for profit if the service is not in the 10
course of the employer's trade or business; 11
(16) service performed as a student nurse in the employ of a hospital or 12
a nurses' training school by an individual who is enrolled and is regularly attending 13
classes in a nurses' training school chartered or approved in accordance with the laws 14
of this state, and service performed as an intern in the employ of a hospital by an 15
individual who has completed a four-year course in a medical school chartered or 16
approved in accordance with the laws of this state, unless the service is required to be 17
covered under the Federal Unemployment Tax Act; 18
(17) service performed by an individual on a boat engaged in catching 19
fish or other forms of aquatic animal life under an arrangement with the owner or 20
operator of that boat under which 21
(A) that individual does not receive any cash remuneration 22
except as provided in (B) of this paragraph; 23
(B) that individual receives a share of the boat's, or the boats' in 24
the case of a fishing operation involving more than one boat, catch of fish or 25
other forms of aquatic animal life or a share of the proceeds from the sale of 26
that catch; and 27
(C) the amount of that individual's share depends on the 28
amount of the boat's, or the boats' in the case of a fishing operation involving 29
more than one boat, catch of fish or other forms of aquatic animal life; but only 30
if the operating crew of that boat, or each boat from which the individual 31
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receives a share in the case of a fishing operation involving more than one 1
boat, is normally made up of fewer than 10 individuals; 2
(18) service performed as a prospective or impaneled juror in a court; 3
(19) service performed for a corporation by an employee of the 4
corporation if 5
(A) the corporation is incorporated under AS 10.06; 6
(B) the corporation is not a government corporation; and 7
(C) the employee is an executive officer of the corporation; 8
(20) service performed by an individual who drives a taxicab whose 9
compensation and written contractual arrangements are as described in 10
AS 23.10.055(a)(13); 11
(21) service of an individual who 12
(A) directly sells or solicits the sale of consumer products, for 13
resale or otherwise, personally to a prospective consumer in the home or 14
otherwise than in a permanent retail establishment; a sale or solicitation by 15
telephone, mail, other telecommunications method, or other nonpersonal 16
method does not satisfy the requirement of this subparagraph; 17
(B) is compensated solely by 18
(i) commissions on sales or other remuneration directly 19
related to sales or sales performance; or 20
(ii) a profit represented by the difference between the 21
wholesale cost of the product to the seller and the final sale price to the 22
consumer; and 23
(C) performs under a written contract with the person for whom 24
the service is performed that provides, notwithstanding AS 23.20.395(a), that 25
the individual is not an employee for purposes of this chapter or for federal or 26
state tax purposes; 27
(22) temporary services related to emergency oil spill training and 28
response activities by an individual described in (17) of this subsection; in this 29
paragraph, "temporary" means a period of less than seven continuous days; and 30
(23) service [VOLUNTEER WORK] performed by an independent 31
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contractor [A PERSON ENGAGED ON A CONTRACT BASIS] as a sports official 1
at a sports event for which the competitors are not paid a wage or salary; however, the 2
exemption provided under this paragraph does not apply to a claim for benefits under 3
this chapter that is related to a sports event or competition sponsored by an employer 4
for whom the person making the claim normally performs work, including work as a 5
teacher, coach, or administrator, that is not sports official work; in this paragraph, 6
(A) "sports official" is a participant in a sports event or 7
competition whose participation is neutral with respect to who wins or loses, 8
including an umpire, referee, judge, scorekeeper, timekeeper, or organizer; 9
(B) "independent contractor" means a sports official 10
(i) working under a written contract between the 11
sports official and the party or association engaging the sports 12
official's services that specifically states the sports official is an 13
independent contractor; 14
(ii) who is paid based on a set fee for each game 15
officiated; 16
(iii) who is free under the terms of the contract to 17
accept or reject assignments of any game; 18
(iv) who is not limited to exclusively officiating with 19
the party engaging the services of the sports official 20
["VOLUNTEER WORK" MEANS WORK FOR WHICH 21
COMPENSATION DOES NOT EXCEED $1,500 A YEAR AND IS 22
PAID ONLY TO DEFRAY OR REIMBURSE THE REASONABLE 23
FOOD, TRAVEL, AND INCIDENTAL EXPENSES THE PERSON 24
INCURS IN ORDER TO PERFORM THE WORK OR AS A RESULT 25
OF PERFORMING THE WORK]. 26
* Sec. 12. AS 23.30.240 is amended to read: 27
Sec. 23.30.240. Officers of corporations, municipal corporations, and 28
nonprofit corporations, and members of limited liability companies as employees. 29
(a) Except as provided in (b) of this section, an executive officer elected or appointed 30
and empowered in accordance with the charter and bylaws of a corporation; a 31
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member, director, or principal officer of a cooperative organized under AS 10.15; 1
or a member of a limited liability company organized under AS 10.50 is not an 2
employee of the business entity under this chapter if the executive officer, principal 3
officer, director, or member owns at least 10 percent of the business entity. Except as 4
provided in (b) of this section, an executive officer of a municipal corporation or 5
charitable, religious, educational, or other nonprofit corporation is not an employee of 6
the corporation under this chapter. 7
(b) Any type of corporation, cooperative, or limited liability company may 8
bring an executive officer, principal officer, director, or a member exempted under 9
(a) of this section within the coverage of the business entity's insurance contract by 10
specifically including the executive officer or member in the contract of insurance. 11
The election to bring the executive officer, principal officer, director, or member 12
within the business entity's coverage continues in force for the period during which the 13
contract of insurance is in effect. During that period, an executive officer, principal 14
officer, director, or a member brought within the coverage of the insurance contract is 15
an employee of the business entity under this chapter. 16
* Sec. 13. AS 23.15.630(b), 23.15.835(b); and AS 23.20.290(d) are repealed. 17
* Sec. 14. The uncodified law of the State of Alaska is amended by adding a new section to 18
read: 19
APPLICABILITY. AS 23.15.630(a), as amended by sec. 2 of this Act, applies to 20
contracts entered into on or after the effective date of sec. 2 of this Act. 21
* Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 22
read: 23
TRANSITION: BACKGROUND CHECKS. Notwithstanding AS 12.62.400(a)(26), 24
added by sec. 1 of this Act, and AS 23.15.845, added by sec. 6 of this Act, a person who, on 25
the day before the effective date of secs. 1 and 6 of this Act, is serving as an instructor at the 26
Alaska Vocational Technical Center may continue to serve as an instructor without obtaining 27
the criminal background check required under AS 23.15.845, added by sec. 6 of this Act, until 28
July 1, 2027. 29
* Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 30
read: 31
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STATE UNEMPLOYMENT INSURANCE LAW FEDERAL APPROVAL. To the 1
extent necessary to implement this Act, the Department of Labor and Workforce 2
Development shall submit for federal approval the changes to the unemployment insurance 3
laws of the state enacted by secs. 3 - 5, 7 - 11, and 13 of this Act. 4
* Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 5
read: 6
CONDITIONAL EFFECT; NOTIFICATION. (a) Sections 3 - 5, 7 - 11, and 13 of this 7
Act take effect only if, on or before July 1, 2027, the United States Secretary of Labor 8
approves the change to the unemployment insurance laws of this state under 26 U.S.C. 3304 9
(Federal Unemployment Tax Act). 10
(b) The commissioner of labor and workforce development shall notify the revisor of 11
statutes in writing within 30 days after the United States Secretary of Labor approves or 12
denies the change to the unemployment insurance laws of this state. 13
* Sec. 18. If secs. 3 - 5, 7 - 11, and 13 of this Act take effect, they take effect on January 1, 14
2027, or the day after the United States Secretary of Labor approves the change to the 15
unemployment insurance laws of this state, whichever is later. 16
* Sec. 19. Section 16 of this Act takes effect immediately under AS 01.10.070(c). 17
* Sec. 20. Except as provided in secs. 18 and 19 of this Act, this Act takes effect January 1, 18
2027. 19