00                            HOUSE BILL NO. 259                                                                          
01 "An Act relating to public school transportation, and to the minimum wages for school                                   
02 bus drivers; and providing for an effective date."                                                                      
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1.  AS 14.09.010(b) is repealed and reenacted to read:                                                   
05            (b)  A school district that enters into a contract described under (a)(1) of this                            
06       section is eligible to receive funding for operating the student transportation system.                           
07       Subject to appropriation, the amount of funding provided by the state under this                                  
08       subsection is the lesser of the amount determined by multiplying the amount of the                                
09       school district's adjusted ADM under AS 14.17.410(b)(1) during the current fiscal                                 
10       year                                                                                                              
11                 (1)  by a per student allocation computed by dividing the amount                                        
12       received by the school district under this subsection during fiscal year 2003 by the                              
13       school district's adjusted ADM under AS 14.17.410(b)(1) during fiscal year 2003; or                               
14                 (2)  by $1,200 per student.                                                                             

01    * Sec. 2.  AS 23.10.055(5) is amended to read:                                                                     
02                 (5)  an individual employed by the United States or by the state or                                     
03       political subdivision of the state, [EXCEPT AS PROVIDED IN AS 23.10.065(b),]                                      
04       including prisoners not on furlough detained or confined in prison facilities;                                    
05    * Sec. 3.  AS 23.10.065(a) is amended to read:                                                                     
06            (a)  Except [AS PROVIDED UNDER (b) OF THIS SECTION AND] as                                                   
07       otherwise provided for in law, for work performed on or after January 1, 2003, an                                 
08       employer shall pay to each employee wages at a rate of not less than $7.15 an hour for                            
09       hours worked in a pay period, whether the work is measured by time, piece,                                        
10       commission, or otherwise.  An employer may not apply tips or gratuities bestowed                                  
11       upon employees as a credit toward payment of the minimum hourly wage required by                                  
12       this section.  Tip credit as defined by the Fair Labor Standards Act of 1938 as                                   
13       amended does not apply to the minimum wage established by this section.  The                                      
14       department shall, by regulation, not later than September 30 of each calendar year,                               
15       adjust the minimum wage for inflation, effective for the following calendar year.  The                            
16       minimum wage shall be either the most recent wage adjusted for 100 percent of the                                 
17       rate of inflation based on the Consumer Price Index for all urban consumers for                                   
18       Anchorage, Alaska, prepared by the United States Bureau of Labor Statistics or $1                                 
19       more than the federal minimum wage, whichever is greater.  The department shall                                   
20       round the adjusted minimum wage up to the nearest one cent.  The adjusted wage shall                              
21       apply to work performed beginning on January 1 through December 31 of the year for                                
22       which it is effective.                                                                                            
23    * Sec. 4.  AS 23.10.065(b) and 23.10.065(c) are repealed.                                                          
24    * Sec. 5.  This Act takes effect July 1, 2004.