Alaska Senate approves payday alternative to checks and cash
Sen. Jesse Bjorkman, R-Nikiski, expresses frustration at a March 19, 2024, news conference the day after the legislature failed by one vote to override Gov. Mike Dunleavy's education-funding veto. Next to him is Sen. Bert Stedman, R-Sitka, a co-chair of the finance committee. (Photo by Yereth Rosen/Alaska Beacon)
The Alaska Senate voted 19-0 on Monday to allow employers the ability to offer a special debit card on payday to employees who don't have a bank account.
'Senate Bill 79 is all about offering options for folks to be paid if they don't have a bank account,' said Sen. Jesse Bjorkman, R-Nikiski and chair of the Senate Labor and Commerce Committee, which sponsored the bill.
If enacted, SB 79 would allow employers to put an employee's wages onto a payroll card, similar to a credit or debit card, instead of paying an employee in cash or by check.
The employee's permission would be required, and the employee must be notified of any fees or terms of use for the card. The card must be free to use at least once per pay period.
Speaking on the Senate floor, Bjorkman said the card is a way for employees without a bank account to avoid check-cashing fees.
An identical bill passed the House and Senate last year by wide, bipartisan margins but Gov. Mike Dunleavy vetoed it because the House passed it after the session deadline.
SB 79 now advances to the House for consideration.
Also on Monday, the Senate voted 19-0 to approve Senate Bill 60, which seeks to name May 12 as Myalgic Encephalomyelitis/Chronic Fatigue Syndrome Day of Recognition. The bill was sponsored by Sen. Löki Tobin, D-Anchorage.
Sen. Donny Olson, D-Golovin, was excused absent.
The bill goes to the House for further consideration.
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