Legislature(2009 - 2010)HOUSE FINANCE 519
04/16/2009 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB1 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 1 | TELECONFERENCED | |
| + | HB 225 | TELECONFERENCED | |
| + | HB 190 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 16, 2009
8:37 a.m.
8:37:53 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 8:37 a.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas, Jr., Vice-Chair
Representative Allan Austerman
Representative Harry Crawford
Representative Anna Fairclough
Representative Richard Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None
ALSO PRESENT
Michelle Sydeman, Staff, Senator Bill Wielechowski, Sponsor;
George Schaaf, Executive Director, Trail Mix, Juneau
PRESENT VIA TELECONFERENCE
Glenn Brady, Owner, Silver Gulch Brewery, Fairbanks; Damian
Thomas, Business Representative, Laborers Local 942,
Fairbanks; Chrystal Schoenrock, Business Owner, CHARR, NFIB,
Kenai; Kokayi Nosakihere, Student, University of Alaska,
Anchorage; Tammy Griffin, Chair, Alaska Hotel and Lodging
Association
SUMMARY
CSSB 1(FIN)
"An Act increasing the minimum hourly wage; and
providing for an effective date."
CSSB 1 (FIN) was heard and HELD in Committee for
further consideration.
HB 225 "An Act relating to the State Procurement Code;
relating to the procurement of supplies, services,
professional services, construction services,
state fisheries products, state agricultural
products, state timber, and state lumber; relating
to procurement preferences; relating to
procurement by the office of the ombudsman, the
Alaska Industrial Development and Export
Authority, the Alaska Energy Authority, and other
state agencies and public corporations; and
providing for an effective date."
HB 225 was scheduled but not heard.
HB 190 "An Act privatizing the Alaska children's trust as
a separate endowment fund; providing for an
administrator for the assets of the former trust;
establishing conditions for a grant of the balance
of the former Alaska children's trust; designating
certain receipts as available for grants to the
trust's successor; and providing for an effective
date."
HB 190 was scheduled but not heard.
8:38:19 AM
CS FOR SENATE BILL NO. 1(FIN)
"An Act increasing the minimum hourly wage; and
providing for an effective date."
MICHELLE SYDEMAN, STAFF, SENATOR BILL WIELECHOWSKI, SPONSOR,
reported that the bill's sponsors are Senators Wielechowski,
Ellis, Thomas, Davis, and French. She noted strong
bipartisan support for the bill, which proposes two modest
increases in the state's minimum wage. The first increase
would take place on July 24 when Alaska's minimum wage will
fall under the federal minimum which rises to $7.25. The
increase would make Alaska's minimum wage equal to the
federal wage. The second increase would become effective on
January 1, 2010, when Alaska's minimum wage would rise to 50
cents above the federal wage equaling $7.75 per hour.
Ms. Sydeman reported that the sponsors believe that these
small increases are appropriate for several reasons.
Alaska's cost of living is one of the highest in the nation.
Despite this fact, Alaska's minimum wage is the lowest on
the West Coast and lower than 19 other states. In July,
Alaska's wage will be lower than 39 other states.
Ms. Sydeman shared statistics about Alaska's wage earners.
8:41:51 AM
Ms. Sydeman stressed that it is important to note that
Alaska law currently exempts employees under age 18 working
30 hours or less a week from the state's minimum wage. One
question many people ask is whether an increase in the
minimum wage would result in job loss. She gave examples
dispelling that idea. She listed economic studies that
support minimum wage increases. She related the benefits to
Alaskans if the minimum wage is increased. She urged
support of the bill.
8:43:47 AM
GEORGE SCHAAF, EXECUTIVE DIRECTOR, TRAIL MIX, JUNEAU,
testified in strong support of SB 1. He explained how his
employees are currently paid the minimum wage of $7.15 an
hour. He described the job duties of his trail crew which
often lead to better jobs in construction. He strongly
encouraged passage of the bill in light of the high cost of
living in Alaska.
8:46:27 AM
Vice-Chair Thomas corrected that the tourism industry pays
well. Mr. Schaaf agreed.
Representative Fairclough asked if Trail Mix was a non-
profit. Mr. Schaaf said it was. Representative Fairclough
wondered if the city contracts with Trail Mix. He explained
his connection with the CBJ, which has an exception in the
municipal code for trail construction due to lack of bids
and is tied to the minimum wage. Representative Fairclough
pointed out increased costs to the state and municipalities
due to raising the minimum wage. Mr. Schaaf pointed out the
significantly higher cost of hiring someone else to do trail
work.
8:47:55 AM
GLENN BRADY, OWNER, SILVER GULCH BREWERY, FAIRBANKS,
testified via teleconference in support of a proposed
Amendment 1 related to tip credit. Co-Chair Hawker
explained that the amendment had not been offered. Mr.
Brady reported that his industry is in favor of a minimum
wage increase, but with a fair tip credit.
8:49:37 AM
Representative Crawford asked Mr. Brady how it would work in
restaurants where all the tips are pooled. Mr. Brady
related that the IRS requires employees to report their tips
as wages. It is a simple accounting procedure. Most
bussers do not make minimum wage so the bill would not apply
to them.
Representative Crawford questioned whether bussers and dish
washers made minimum wage. Mr. Brady clarified that bussers
and dish washers make more than minimum wage.
8:51:59 AM
DAMIAN THOMAS, BUSINESS REPRESENTATIVE, LABORERS LOCAL 942,
FAIRBANKS, via teleconference, spoke against the potential
Amendment 1 regarding tip credit. He testified in favor of
raising the minimum wage. He felt that waiters deserve all
the tips they earn.
8:54:41 AM
CHRYSTAL SCHOENROCK, BUSINESS OWNER, CHARR, NFIB, KENAI,
testified via teleconference in agreement with potential
Amendment 1.
8:56:48 AM
KOKAYI NOSAKIHERE, STUDENT, UNIVERSITY OF ALASKA, ANCHORAGE,
via teleconference, informed the Committee that there were
251 people who have signed a letter in support of the bill.
8:59:01 AM
TAMMY GRIFFIN, CHAIR, ALASKA HOTEL AND LODGING ASSOCIATION,
via teleconference, made the point that most employees are
not at minimum wage unless tips are included. She gave an
example. The employees that receive tips are the highest
paid employees in the hospitality industry. She spoke in
favor of accepting Amendment 1 regarding the tip credit. If
that was included, she reported being in favor of increasing
the minimum wage.
The meeting was recessed to the call of the chair at 9:03
AM.
4:49:16 PM
ADJOURNMENT
The meeting was adjourned at 4:49 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB225 Explanation of Changes HFIN.doc |
HFIN 4/16/2009 8:30:00 AM HFIN 2/8/2010 1:30:00 PM |
HB 225 |
| HB 225 Sectional Analysis - Electronic.doc |
HFIN 4/16/2009 8:30:00 AM |
HB 225 |
| HB 225 Sponsor Statement - Electronic.doc |
HFIN 4/16/2009 8:30:00 AM HFIN 3/11/2010 9:00:00 AM |
HB 225 |
| SB 1 Amendment 2 HFC T.3.pdf |
HFIN 4/16/2009 8:30:00 AM |
SB 1 |
| HB190CS(HSS)-CED-CRA-04-15-09.pdf |
HFIN 4/16/2009 8:30:00 AM |
HB 190 |