00                       CS FOR HOUSE BILL NO. 56(FIN)                                                                    
01 "An Act relating to minimum wages; and providing for an effective date."                                                
02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
03    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new section                         
04 to read:                                                                                                                
05       LEGISLATIVE INTENT.  It is the intent of the legislature that                                                     
06            (1)  sections 2 - 4 of this Act embody the terms of the initiative identified as a                           
07 "Bill Increasing Alaska's Minimum Hourly Wage," petition ID:  01MNWG;                                                   
08            (2)  those sections are substantially the same measure as the minimum wage                                   
09 initiative; and                                                                                                         
10            (3)  if this Act is enacted before the election, the minimum wage initiative will                            
11 be void under art. XI, sec. 4, Constitution of the State of Alaska.                                                     
12    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section to                         
13 read:                                                                                                                   
14       FINDINGS, DECLARATION, AND PURPOSE OF SECTIONS 3 AND 4.  (a)  The                                                 
15 legislature finds that                                                                                                  

01            (1)  an increase in the state minimum wage will help ensure a minimum                                        
02 standard of living for the health and well-being of every Alaskan;                                                      
03            (2)  employees working full-time at the minimum wage earn far less than the                                  
04 federal poverty level for a family of three;                                                                            
05            (3)  the west coast states of Washington, Oregon, and California already have a                              
06 higher minimum wage than the minimum wage in Alaska; and                                                                
07            (4)  a fair minimum wage indexed to the cost of living will help low-income                                  
08 workers keep pace with inflation.                                                                                       
09       (b)  It is the purpose of secs. 3 and 4 of this Act to increase the state minimum wage to                         
10 $7.15 an hour, effective January 1, 2003, and thereafter adjust the minimum wage annually                               
11 for inflation.                                                                                                        
12    * Sec. 3.  AS 23.10.065(a) is amended to read:                                                                     
13            (a)  Except as provided under (b) of this section and as otherwise provided                              
14       for in law, for work performed on or after the effective date of this Act, an                                 
15       employer shall pay to each employee wages at a rate of not less than $7.15 [50                                
16       CENTS] an hour [GREATER THAN THE PREVAILING FEDERAL MINIMUM                                                       
17       WAGE LAW] for hours worked in a pay period, whether the work is measured by                                       
18       time, piece, commission, or otherwise.  An employer may not apply tips or gratuities                              
19       bestowed upon employees as a credit toward payment of the minimum hourly wage                                     
20       required by this section.  Tip credit as defined by the Fair Labor Standards Act of 1938                          
21       as amended does not apply to the minimum wage established by this section.  The                               
22       department shall, by regulation, not later than September 30 of each calendar                                 
23       year, adjust the minimum wage for inflation, effective for the following calendar                             
24       year.  The minimum wage shall be either the most recent wage adjusted for 100                                 
25       percent of the rate of inflation based on the Consumer Price Index for all urban                              
26       consumers for Anchorage, Alaska, prepared by the United States Bureau of                                      
27       Labor Statistics or $1 more than the federal minimum wage, whichever is                                       
28       greater.  The department shall round the adjusted minimum wage up to the                                      
29       nearest one cent.  The adjusted wage shall apply to work performed beginning on                               
30       January 1 through December 31 of the year for which it is effective.                                          
31    * Sec. 4.  Sections 2 and 3 of this Act take effect January 1, 2003.