Legislature(2001 - 2002)

04/27/2001 03:30 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 226-EMPLOYMENT OF PERSONS UNDER AGE 19                                                                                     
                                                                                                                                
CHAIR MURKOWSKI announced  that the next order  of business would                                                               
be HOUSE  BILL NO.  226, "An  Act relating  to the  employment of                                                               
persons 14  years of age  or older and under  19 years of  age on                                                               
licensed  premises,  including  hotels,  restaurants,  or  eating                                                               
places; and  relating to hours of  work of minors under  16 years                                                               
of age."                                                                                                                        
                                                                                                                                
Number 2133                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT  moved  to   adopt  CSHB  226,  Version  22-                                                               
LS0368\O,  Cramer, 4/27/01,  as the  working document  before the                                                               
committee.   There being no  objection, Version O was  before the                                                               
committee.                                                                                                                      
                                                                                                                                
JOHN  MANLY, Staff  to Representative  John Harris,  Alaska State                                                               
Legislature,  testified on  behalf  of the  sponsor.   Mr.  Manly                                                               
paraphrased the following sponsor statement:                                                                                    
                                                                                                                                
     House  Bill 226  was introduced  with the  objective of                                                                    
     making it easier for minors  to obtain summer and after                                                                    
     school  employment, especially  in hotels,  restaurants                                                                    
     and other eating establishments.   Many more kids could                                                                    
     get jobs  as dishwashers,  hotel maids,  busboys, etc.,                                                                    
     if not for  the fact that most of  the businesses where                                                                    
     they  might   be  employed  have   beverage  dispensary                                                                    
     licenses.                                                                                                                  
                                                                                                                                
     Current   state  law   also   makes  it   unnecessarily                                                                    
     difficult  for employers,  as well  as the  job-seeking                                                                    
     youth.    Finding workers  willing  to  take jobs  that                                                                    
     typically  are not  high-paying becomes  more difficult                                                                    
     if  high school-age  kids  are not  eligible.   And  it                                                                    
     becomes  a real  problem during  the short  but intense                                                                    
     tourist  season  when  kids   on  summer  vacation  are                                                                    
     required to  get their parents' permission  before they                                                                    
     can start  working.   This is a  process that  can take                                                                    
     days or weeks, during which  time the youth lose income                                                                    
     and employers go without help.                                                                                             
                                                                                                                                
     HB  226 seeks  to streamline  this process  by allowing                                                                    
     youth 16-18 years of age  to work in these jobs without                                                                    
     having   to    obtain   their    parents'   permission.                                                                    
     Provisions  in current  law are  retained that  prevent                                                                    
     minors from  serving, mixing, delivering  or dispensing                                                                    
     alcoholic  beverages,  and  requiring the  employer  to                                                                    
     notify   the   Department   of  Labor   and   Workforce                                                                    
     Development of  the fact  that a  minor is  working for                                                                    
     them.  HB  226 also extends state law to  allow 14- and                                                                    
     15-year-olds  to  work  in these  hotels,  restaurants,                                                                    
     resorts, and  other eating places, with  their parents'                                                                    
     permission.                                                                                                                
                                                                                                                                
     This  bill also  makes changes  to state  law governing                                                                    
     the number of  hours and time of day a  minor can work,                                                                    
     while school is  in session and when it  is not, mainly                                                                    
     to align Alaska law with current federal limits.                                                                           
                                                                                                                                
MR. MANLY  turned to the  proposed CS, which attempts  to cleanup                                                               
one of  the statutes that  was left on  the books when  the state                                                               
changed the legal drinking age from 19 to 21.                                                                                   
                                                                                                                                
Number 1980                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT  said  that  this   seems  to  head  in  the                                                               
direction that  "we" have been trying  not to go.   That is, "we"                                                               
have   been   trying   to   disassociate   kids   from   alcohol.                                                               
Representative Kott  asked whether  there is a  potential problem                                                               
with  this legislation  regarding  the ability  of a  16-year-old                                                               
busboy busing tables where alcohol was left on the table.                                                                       
                                                                                                                                
MR.  MANLY acknowledged  that such  may be  a potential  problem.                                                               
Clearly, in  the past  the legislature  didn't want  kids working                                                               
near [alcohol].                                                                                                                 
                                                                                                                                
REPRESENTATIVE KOTT remarked that  perhaps the delivering portion                                                               
of the  legislation would cover this  potential problem; however,                                                               
he  wasn't   sure.    Representative   Kott  surmised   that  the                                                               
restaurant owner will have to  establish drinking and nondrinking                                                               
sections in the restaurant.   He recalled that under current law,                                                               
a person under age 21 can't even lift an alcoholic beverage.                                                                    
                                                                                                                                
MR. MANLY  pointed out  that it  may be  a matter  of segregating                                                               
duties  and training  staff that  employees under  age 21  aren't                                                               
allowed  to bus  tables with  alcohol  or the  [of age  employee]                                                               
removes  the alcohol  before [the  underage  employee] buses  the                                                               
table.                                                                                                                          
                                                                                                                                
Number 1816                                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO  said that  as an  employer he  wasn't sure                                                               
that he  would place himself  in a position  of risk by  hiring a                                                               
14-  or 15-year  old to  bus  tables in  a place  where there  is                                                               
alcohol.  Representative Halcro inquired  as to who is requesting                                                               
this legislation.                                                                                                               
                                                                                                                                
MR. MANLY answered that this  legislation was introduced upon the                                                               
request of one  of Representative Harris' constituents  who has a                                                               
combination hotel restaurant lounge  in Valdez.  This constituent                                                               
has difficulty obtaining even dishwashers  due to the way the law                                                               
is  written.    Mr.  Manly related  his  understanding  that  the                                                               
current law says that minors  cannot sell alcoholic beverages and                                                               
thus restaurants  that serve  beer would  not be  able to  have a                                                               
[minor] run  the cash register  because that  constitutes selling                                                               
the alcoholic beverage.                                                                                                         
                                                                                                                                
MR. MANLY, in response to  Chair Murkowski, said that he believes                                                               
that  an  employer  of  a  combination  hotel  restaurant  lounge                                                               
wouldn't be  able to  hire a  15-year-old as  a maid  because the                                                               
building houses a place where alcohol is sold.                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG  pointed  out  that  the  licensing  law                                                               
requires  a  diagram  of  a licensed  premise,  which  may  limit                                                               
service to a specific area.   However, he acknowledged that there                                                               
may be room service.                                                                                                            
                                                                                                                                
REPRESENTATIVE CRAWFORD said that he  wasn't clear on the current                                                               
law.                                                                                                                            
                                                                                                                                
REPRESENTATIVE  MEYER   related  his  understanding  that   if  a                                                               
business has a  full dispensary license, then  all employees must                                                               
be 21.   However, if  the business has  a beer and  wine license,                                                               
then there can be employees that are under 21.                                                                                  
                                                                                                                                
Number 1621                                                                                                                     
                                                                                                                                
DOUG  GRIFFIN,   Director,  Alcoholic  Beverage   Control  Board,                                                               
Department  of  Revenue,  testified   via  teleconference.    Mr.                                                               
Griffin  explained  that  places that  have  beverage  dispensary                                                               
licenses [such  as a  Red Robin] are  allowed to  employee people                                                               
under  21 years  of age  if a  restaurant designation  permit has                                                               
been  received.    The  restaurant  designation  permit  requires                                                               
approval  by the  local governing  body and  review of  the floor                                                               
plan.   An [underage] employee in  such a location can  engage in                                                               
duties that don't involve the  serving, dispensing, or selling of                                                               
alcoholic beverages.   For  example, a Red  Robin could  have [an                                                               
employee under  the age of  21 as  a] hostess, kitchen  staff, or                                                               
busboy.   Mr. Griffin  agreed with  Representative Kott  that the                                                               
busing  of tables  is one  area in  which it  is possible  for an                                                               
underage  individual   to  come   into  contact   with  alcoholic                                                               
beverages that are unconsumed on  the table.  In such situations,                                                               
[the ABC  Board] encourages the  contents of the beverages  to be                                                               
dumped into a  bin at the table in order  to avoid consumption by                                                               
the  underage employee.   Mr.  Griffin noted  that an  [underage]                                                               
employee, perhaps  a cashier, is  allowed to carry the  bill even                                                               
though the  bill may  contain alcoholic  beverages.   Mr. Griffin                                                               
emphasized  that in  all cases  the establishment  has to  have a                                                               
restaurant  designation permit  [in  order  to employee  underage                                                               
people].    He clarified  that  under  current law  [an  underage                                                               
employee in  a location that serves  alcohol] has to be  at least                                                               
16 years  of age.   In  regard to the  maid example,  Mr. Griffin                                                               
said that  Representative Rokeberg  was correct  in that  a hotel                                                               
with room service  would be part of the  licensed premises, which                                                               
has been  problematic and thus  even a 14- or  15-year-old hasn't                                                               
been allowed to be employed as a maid on such a premises.                                                                       
                                                                                                                                
Number 1403                                                                                                                     
                                                                                                                                
MR.  GRIFFIN  confirmed  that  the  [ABC  Board]  is  opposed  to                                                               
lowering the age limit from 16 years  of age to 14.  Although Mr.                                                               
Griffin was sympathetic  to a brief "labor  shortage" in isolated                                                               
areas in  Alaska, he didn't feel  that it's good policy  to lower                                                               
the age  to 14 in an  attempt to deal  with that issue.   He felt                                                               
that there  are other  areas that the  employer could  explore in                                                               
order  to  deal  with  a   "labor  shortage."    Furthermore,  he                                                               
expressed   concern  with   regard  to   the  lack   of  parental                                                               
permission.   Mr.  Griffin  related his  belief  that things  are                                                               
liberal enough  now and  the system is  working.   Moreover, this                                                               
legislation may  have some unintended consequences.   Mr. Griffin                                                               
also  agreed with  Representative Kott  in that  this legislation                                                               
seems, by allowing  younger and younger people to  be involved in                                                               
jobs that  serve alcohol,  to send a  mixed message.   Therefore,                                                               
the ABC Board is opposed to HB 226.                                                                                             
                                                                                                                                
CHAIR MURKOWSKI  referred to Section 2  of HB 226 that  refers to                                                               
an exception outlined under AS  04.16.049(c), which doesn't allow                                                               
a minor  to consume, possess, or  control alcohol.  She  asked if                                                               
she was missing something.                                                                                                      
                                                                                                                                
MR. GRIFFIN  replied no  and explained  that "we're"  saying that                                                               
there are  some jobs that  can be  performed on a  liquor license                                                               
premises,  assuming  the  restaurant  designation  permit  is  in                                                               
place,  by [the  designated age  group of  minors].   Mr. Griffin                                                               
reiterated the ABC Board's position that  the age of 16 for these                                                               
jobs is  liberal enough.   He pointed  out that 14-  and 15-year-                                                               
olds  are middle  kids versus  16-year-old high  school kids  and                                                               
there is a difference between the maturity level of those ages.                                                                 
                                                                                                                                
REPRESENTATIVE CRAWFORD  returned to the exceptions  and asked if                                                               
these [employees that  are minors] would be allowed  to stock the                                                               
bar after hours and perhaps even  carry in beer to stock the bar.                                                               
Such  actions   don't  seem  to   fall  under   serving,  mixing,                                                               
delivering, or dispensing.                                                                                                      
                                                                                                                                
MR. GRIFFIN  answered that  the general rule  would be  that such                                                               
wouldn't be allowed and would probably be considered delivering.                                                                
                                                                                                                                
Number 1001                                                                                                                     
                                                                                                                                
MR.  GRIFFIN, in  response to  Representative Rokeberg,  answered                                                               
that  if  the  establishment  is  in  an  unorganized  area,  the                                                               
restaurant designation  permit can be obtained  directly from the                                                               
ABC Board.   Mr.  Griffin indicated that  this permit  involves a                                                               
more detailed  diagram than that  existing in the  liquor license                                                               
file because  the board  is interested in  employment as  well as                                                               
the circumstances under  which an individual under the  age of 21                                                               
may be  able to enter  a restaurant  that serves alcohol  for the                                                               
purpose  of  dining.    In  further  response  to  Representative                                                               
Rokeberg,  Mr. Griffin  clarified  that [when  there  is a  local                                                               
governing  body] that  local governing  body has  to approve  the                                                               
permit.                                                                                                                         
                                                                                                                                
Number 0842                                                                                                                     
                                                                                                                                
REBECCA NANCE  GAMEZ, Director, Division of  Employment Security,                                                               
Department of  Labor & Workforce Development  (DLWD), referred to                                                               
Sections 3  and 4 of  HB 226 to  which DLWD would  be supportive.                                                               
Those  sections  place  the  state  in  compliance  with  federal                                                               
regulations by  clearly defining the  hours and days  that minors                                                               
under the age of  16 may work.  The department  has no opinion on                                                               
the other sections of the bill.                                                                                                 
                                                                                                                                
There was  discussion regarding a  CS [Version L] that  was never                                                               
before the  committee.  The  discussion concluded that  Version O                                                               
merely lowers the age while the process remains the same.                                                                       
                                                                                                                                
MR. MANLY agreed that the  main difference in the legislation and                                                               
the current law  is the lowering of  the age as well  as the fact                                                               
that 16- to  20-year-olds wouldn't have to  obtain their parent's                                                               
written  permission to  start work.   However,  if their  parents                                                               
don't want  them to work  at a  particular place, there  is still                                                               
the  common law  fundamental  that these  children  are wards  of                                                               
their  parents and  thus the  parents could  notify the  employer                                                               
that   they   don't   want  their   children   working   at   the                                                               
establishment.                                                                                                                  
                                                                                                                                
MR.  MANLY, in  response  to Chair  Murkowski,  agreed that  this                                                               
legislation would  repeal subsection (d), which  will allow young                                                               
people to  now work the  cash register where  alcoholic beverages                                                               
may be sold.                                                                                                                    
                                                                                                                                
The committee took a brief at-ease from 4:57 p.m. to 5:02 p.m.                                                                  
                                                                                                                                
Number 0345                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG noted that the  committee has a number of                                                               
issues before it  involving youth employment and  thus he thought                                                               
the  committee  should  research  those  issues,  including  this                                                               
topic.     Representative   Rokeberg   wasn't   sure  that   this                                                               
legislation addresses an issue that  is applicable statewide.  He                                                               
expressed  the need  to develop  a  streamlined youth  employment                                                               
system.                                                                                                                         
                                                                                                                                
CHAIR  MURKOWSKI  noted  that Representative  Rokeberg  had  been                                                               
chairing the  subcommittee on  HB 128  and thus  she asked  if he                                                               
would be  willing to take on  a subcommittee on HB  226 and other                                                               
related  issues.    She   appointed  herself  and  Representative                                                               
Crawford to be members of this subcommittee.                                                                                    
                                                                                                                                
[HB 226 was heard and held.]                                                                                                    

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