Bill > SB79

This bill addresses two key areas of wage payment in Alaska: interchange fees on electronic payment transactions and payroll card accounts. First, the bill prevents payment card networks from charging interchange fees on tax or gratuity amounts during electronic payment transactions, allowing merchants to submit tax and gratuity documentation up to 180 days after a transaction and requiring networks to credit back any improperly charged fees. The bill also establishes comprehensive regulations for payroll card accounts, mandating that employers provide employees with clear information about wage payment options, card terms, and fees. Employers must offer at least one cost-free weekly withdrawal, unlimited free balance checks, and cannot charge fees for card application, initial issuance, wage transfers, or point-of-sale purchases. The payroll card account must also be insured by a recognized deposit insurance entity. Additionally, the bill adds a provision that entities involved in electronic payment transactions can only use transaction data to process the transaction or as required by law, and includes a severability clause to ensure that if any part of the act is found invalid, the rest remains in effect. The legislation aims to protect both merchants and employees by ensuring transparent and fair practices in electronic payment and wage distribution methods.

Budget and Finance, Business and Industry

Labor & Commerce (S)

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB79