02/10/2014 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB213 | |
| HB276 | |
| HB211 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 276 | TELECONFERENCED | |
| *+ | HB 211 | TELECONFERENCED | |
| *+ | HB 213 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 10, 2014
3:21 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Lora Reinbold, Vice Chair
Representative Mike Chenault
Representative Charisse Millett
Representative Andy Josephson
MEMBERS ABSENT
Representative Bob Herron
Representative Dan Saddler
COMMITTEE CALENDAR
HOUSE BILL NO. 213
"An Act relating to golf course alcoholic beverage licenses."
- MOVED CSHB 213(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 276
"An Act making the Alaska Wage and Hour Act inapplicable to
certain employees of motor vehicle dealers; and providing for an
effective date."
- MOVED HB 276 OUT OF COMMITTEE
HOUSE BILL NO. 211
"An Act relating to the education and employment of individuals
with disabilities."
- MOVED CSHB 211(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 213
SHORT TITLE: GOLF COURSE ALCOHOLIC BEVERAGE LICENSES
SPONSOR(s): REPRESENTATIVE(s) THOMPSON
01/21/14 (H) PREFILE RELEASED 1/10/14
01/21/14 (H) READ THE FIRST TIME - REFERRALS
01/21/14 (H) L&C
02/10/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 276
SHORT TITLE: MOTOR VEHICLE DEALER EMPLOYEES
SPONSOR(s): REPRESENTATIVE(s) THOMPSON
01/24/14 (H) READ THE FIRST TIME - REFERRALS
01/24/14 (H) L&C
02/10/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 211
SHORT TITLE: EMPLOYMENT OF PERSONS WITH DISABILITIES
SPONSOR(s): REPRESENTATIVE(s) MILLETT, GATTIS, HOLMES, HUGHES,
LEDOUX, JOSEPHSON
01/21/14 (H) PREFILE RELEASED 1/10/14
01/21/14 (H) READ THE FIRST TIME - REFERRALS
01/21/14 (H) L&C, FIN
02/10/14 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
BRODIE ANDERSON, Staff
Representative Steve Thompson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 213 on behalf of the prime
sponsor, Representative Thompson.
HOWARD THEISS, Owner
Fairbanks Golf Course
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 213.
JOMO STEWART, Project Manager
Fairbanks Economic Development Corporation [FEDCO)
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 213.
RICH SAYERS, General Manager
Anchorage Golf Course
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 213.
DALE FOX, President/Chief Executive Officer
Cabaret, Hotel, Restaurant & Retailer's Association (CHARR)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 213.
SHIRLEY COTE, Executive Director
Alcoholic Beverage Control Board ("ABC Board")
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 213.
REPRESENTATIVE STEVE THOMPSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 276.
JANE PIERSON, Staff
Representative Steve Thompson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions on behalf of the
sponsor, Representative Thompson, on HB 276.
GREY MITCHELL, Acting Assistant Commissioner
Department of Labor & Workforce Development (DLWD)
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding HB 213.
MARTEN MARTENSEN, President
Alaska Auto Dealers Association (AADA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 276.
VASILIOS GIALOPSOS, Staff
Representative Charisse Millett
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of the sponsor HB 211.
RON PAUL, Disabilities Employment Specialist
Frontier Community Services (FCS)
Soldotna, Alaska
POSITION STATEMENT: Testified during the discussion of HB 211.
CATHY BABUSCIO
Director of Human Resources
Mat-Su Regional Medical Center (MSRMC)
Palmer, Alaska
POSITION STATEMENT: Testified on HB 276.
RIC NELSON, Member
Governor's Council on Disabilities & Special Education
Department of Health and Social Services
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 211.
ERIC YANUSZ
Palmer, Alaska
POSITION STATEMENT: Testified during the discussion of HB 211.
LUANN YANUSZ
Palmer, Alaska
POSITION STATEMENT: Testified in support of HB 211.
MILLIE RYAN, Executive Director
REACH, Inc.
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 211.
ACTION NARRATIVE
3:21:43 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:21 p.m. Representatives
Reinbold, Millett, Josephson, Chenault, and Olson were present
at the call to order.
HB 213-GOLF COURSE ALCOHOLIC BEVERAGE LICENSES
3:21:53 PM
CHAIR OLSON announced that the first only order of business
would be HOUSE BILL NO. 213, "An Act relating to golf course
alcoholic beverage licenses."
3:22:19 PM
BRODIE ANDERSON, Staff, Representative Steve Thompson, Alaska
State Legislature, stated that currently privately-owned golf
courses can only serve beer and wine. Unfortunately, due to
this limitation, the privately-owned golf courses are not
provided the same opportunities currently allowed for golf
courses on federal property such as military installations. He
said that military golf courses are exempt from golf course
liquor licenses and can serve all alcoholic beverages. Since
private golf courses are limited to serving beer and wine, they
are at a disadvantage to secure large events, including
tournaments. Additionally, unaccompanied minors can only enter
dining facilities at a privately-owned golf course that serves
beer and wine and minors cannot play golf without being
accompanied by an adult. This bill would allow golf courses the
same privileges as those located on federal property. Under HB
213 privately-owned golf courses could serve all alcoholic
beverages. The bill would also clarify restrictions for minors
on the golf course.
MR. ANDERSON referred to a letter in members' packets from [Rich
Sayers, General Manager] Anchorage Golf Course and O'Malley on
the Green. The letter suggests the committee consider an
amendment. He referred to page 2 line 11, which read, "... by a
person over the age of 21 years, and the parent or guardian of
the ...." He explained that having the word "and" means that
the minor must be accompanied by someone over 21 and also has
consent of a parent or guardian. He stated that the letter
suggests [removal of the language that requires minors under the
age of 16 to be accompanied by a person over the age of 21], by
changing "and" to "or." He said this would allow minors under
the age of 16 to play golf so long as they have parental
consent. He indicated the prime sponsor of HB 213 believes that
is a good change.
3:25:27 PM
CHAIR OLSON asked whether an amendment has been submitted to
accomplish the change.
MR. ANDERSON answered no; that the sponsor hopes the committee
would entertain amending the bill.
CHAIR OLSON asked for clarification on whether the bill is time
sensitive.
3:26:47 PM
The committee took an at-ease from 3:26 p.m. to 3:28 p.m.
3:28:22 PM
MR. ANDERSON stated that the bill has a zero fiscal note and it
will only impact privately-owned golf courses.
CHAIR OLSON remarked that other golf courses have weighed in on
the bill, as well.
3:28:49 PM
REPRESENTATIVE REINBOLD asked how many golf courses operate
recreational site license.
MR. ANDERSON answered that eight golf courses currently operate
with a liquor license.
REPRESENTATIVE CHENAULT remarked that he does not own a golf
course.
3:30:07 PM
REPRESENTATIVE CHENAULT made a motion to adopt a Conceptual
Amendment 1, on page 2, line 11, to strike "and" insert "or."
REPRESENTATIVE REINBOLD objected for the purpose of discussion.
She said she preferred the original language; however, she
deferred to the will of the committee.
REPRESENTATIVE REINBOLD removed her objection.
3:30:58 PM
REPRESENTATIVE CHENAULT explained the reason for Conceptual
Amendment 1 is that he and the prime sponsor do not want to
restrict youth from being on golf courses. He offered his
belief that this language will not hamper [the liquor laws] in
any way nor will it allow youth under the ages of 21 to have
better access to liquor. He said that "or" fits the scenario
better than "and" does.
3:31:44 PM
REPRESENTATIVE MILLETT reminded members that any golf course
serving alcohol must follow the liquor rules of the Alcoholic
Beverage Control Board (ABC). This means all servers must have
TAM cards [training for alcohol professionals]. It wouldn't be
any different under the bill since servers aren't going to serve
children or allow anyone under 21 an opportunity to drink. She
didn't see any problem having youth on the golf course since all
of the provisions related to alcohol would apply.
3:33:10 PM
REPRESENTATIVE REINBOLD lifted her objection [previously
lifted].
There being no further objection, Conceptual Amendment 1 was
adopted.
3:33:39 PM
HOWARD THEISS, Owner, Fairbanks Golf Course, stated that he
supports the idea of a full liquor license on the golf course.
He also appreciated [Conceptual Amendment 1] since it allows
minors to practice and improve their golf. He said that it's
been tough to compete [with other golf courses] due to the
liquor law restrictions. He stated that he is one of six
owners, and president of the organization. He said the
Fairbanks Golf Course is in support of HB 213.
3:34:58 PM
JOMO STEWART, Project Manager, Fairbanks Economic Development
Corporation [FEDCO), stated that the FEDCO supports the bill.
He said that his boss, [Jim Dodson, President and CEO, FEDCO],
sent a letter of support [in members' packets]. The FEDCO
supports HB 213 in terms of attracting tourism related golfing.
Additionally, the FEDCO supports the bill in terms of the
competitiveness between the public and private sector. He
explained that the Fairbanks Golf Course is at a competitive
disadvantage since it cannot provide the kinds of things
tourists are accustomed to in other parts of the country. He
concluded that the FEDCO is supporting the bill for fairness,
competitiveness, and attractiveness.
3:36:08 PM
RICH SAYERS, General Manager, Anchorage Golf Course, testified
in support of HB 213 and in support of allowing youth to
participate without being accompanied by an adult, as stated in
the letter [in members' packets].
3:37:08 PM
DALE FOX, President& CEO, Cabaret, Hotel, Restaurant &
Retailer's Association (CHARR), said that CHARR supports the
concept of golf course beverage licenses, in which the golf
course purchases a full beverage dispensary license in order to
be able to serve beverages anywhere on the course. He expressed
concern that the bill may provide "full beverage dispensary
license" instead of a "golf course license". He stated that
CHARR believes there is a need to purchase a full beverage
dispensary license to be fair and competitive with other
establishments in the community. The second part of the bill
attempts to address minors on premise. The bill as written
would grant 16-year-olds with parental permission the right to
be on the course. He suggested the issue is larger than what
the bill addresses since [it only addresses youth 16 years and
older] but 10-year-olds participate in "first tee" programs and
he has observed a mother dropping off a 12-year-old at the golf
course. He said he wants golf courses open to youth of any age
so kids can learn to play golf. He said, "And maybe we'll get
our next Tiger Woods from Alaska." He suggested that the
committee should allow youth of any age to access the golf
course. Golf is clearly a healthy activity and youth should be
encouraged to participate in golfing.
3:39:02 PM
REPRESENTATIVE REINBOLD asked whether he supported [Conceptual
Amendment 1].
MR. FOX answered that [Conceptual Amendment 1] makes some sense
although he was unsure whether it goes far enough. He offered
his belief that the age limit is a problem for some of his golf
course members.
3:39:34 PM
REPRESENTATIVE JOSEPHSON said it appears that [subparagraph] (B)
appears to cover any use, at least with parental consent.
MR. FOX answered yes.
3:40:05 PM
REPRESENTATIVE JOSEPHSON asked whether the full dispensary
license would be required for spirits so the license would need
to be upgraded from beer and wine.
CHAIR OLSON suggested that the Alcoholic Beverage Control Board
(ABC Board) could clarify if this pertains to beer and wine.
REPRESENTATIVE JOSEPHSON pointed out that the bill would delete
beer and wine and insert alcoholic beverages.
3:41:04 PM
CHAIR OLSON asked whether this bill would require a full
[beverage dispensary license].
SHIRLEY COTE, Executive Director, Alcoholic Beverage Control
Board ("ABC Board"), Department of Commerce, Community &
Economic Development, responded that the bill would extend
beyond just serving beer and wine to include spirits, similar to
a beverage dispensary license such that golf course licensees
would be allowed to serve, beer, wine, or hard liquor.
3:42:03 PM
CHAIR OLSON asked whether she had any issues about the minors on
premises after the committee [adopted Conceptual Amendment 1].
MS. COTE answered that Representative Millett was correct, that
the licensee is responsible for ensuring that alcoholic
beverages are not put in the hands of those under the age of 21.
Currently, staff has to ensure the underage persons are not
served or given access to beer and wine so she assumed this
would extend to hard liquor on golf courses.
3:42:55 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 213.
3:43:11 PM
REPRESENTATIVE MILLETT moved to report HB 213, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, the CSHB
213(L&C) was reported from the House Labor and Commerce Standing
Committee.
The committee took an at-ease from 3:44 p.m. to 3:48 p.m.
HB 276-MOTOR VEHICLE DEALER EMPLOYEES
3:48:12 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 276, "An Act making the Alaska Wage and Hour Act
inapplicable to certain employees of motor vehicle dealers; and
providing for an effective date."
3:48:20 PM
REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, as
sponsor, said this bill would clarify that auto sales staff,
auto service writers, and auto finance personnel are exempt from
Alaska's minimum wage and hour act. These employees are paid on
commission and have never been hourly employees. He explained
that HB 276 was drafted in response to confusion caused by the
regulation, 8 AAC 15.910 (a) (16), which read, "straight
commission" means a fixed percentage of each dollar of sales an
employee makes; ...." This regulation became interpreted to
mean that the commission must be applied to the gross amount of
the sale. While this interpretation might be appropriate for
some commission sales, such as real estate, it is not
appropriate or customary for auto sales. An auto dealership
must pay for the vehicle first from the sale price. Advertising
laws prevent an "add on charge" to an advertised sale price to
accommodate a commission. Thus, if a net sale is three percent
of the gross, the dealer cannot pay a commission of five
percent. This bill will clarify the long-standing employment
practices of the industry by maintaining a commission based
employment system that works well for both employer and
employees. The DLWD has been helpful and amended its
regulations; however, as a result of litigation it is necessary
to seek final clarification in statute.
3:50:59 PM
REPRESENTATIVE JOSEPHSON asked for the distinction between auto
sales transactions and other industries. He asked whether this
requirement should apply to other retail sales' businesses.
JANE PIERSON, Staff, Representative Steve Thompson, Alaska State
Legislature, said she did not think store sales commissions are
supplemented by salaries. For example, it would take a lot of
shoes to make a living. She related her understanding that auto
sales are one of the few industries in which the dealership is
selling a product it purchased from the manufacturer.
3:52:26 PM
REPRESENTATIVE JOSEPHSON remarked department stores likely own
the goods. He related his understanding that the definition for
straight commission applied to gross, but not net cost for the
dealership.
MS. PIERSON answered yes.
REPRESENTATIVE JOSEPHSON asked whether this bill would exempt
all auto dealership employees from the wage and hour statutes.
MS. PIERSON deferred to Marten Martensen, president of the
Alaska Auto Dealers Association to answer.
3:53:22 PM
REPRESENTATIVE JOSEPHSON asked whether federal wage and hour
regulations would offer protections to auto employees.
MS. PIERSON answered no; that this provision falls under AS
23.10.055(a), which pertains to exemptions, compensation of
executives, administrators, and professionals.
REPRESENTATIVE JOSEPHSON asked whether it was her understanding
that federal law would not apply, in instances in which a
salesperson did not earn sufficient commissions.
MS. PIERSON answered no.
3:54:29 PM
REPRESENTATIVE JOSEPHSON said under HB 276, the car sales person
would not have a guaranteed minimum wage or straight commission,
but would earn a commission on net sales.
MS. PIERSON answered yes.
REPRESENTATIVE JOSEPHSON asked whether the employee negotiates
with the dealer on the definition of net sales.
MS. PIERSON understood that the employee would have an idea of
the approximate purchase price and adjust the sale accordingly,
such as make the decision to take a three percent commission
rather than not sell the car.
3:55:49 PM
REPRESENTATIVE JOSEPHSON said he was surprised that the service
writer who isn't selling anything is also on commission.
MS. PIERSON deferred to Mr. Martensen to answer.
3:57:36 PM
REPRESENTATIVE REINBOLD asked whether any issues were identified
prior to adoption of these regulations. She clarified she was
interested in the reason the DLWD adopted the regulations.
GREY MITCHELL, Acting Assistant Commissioner, Department of
Labor & Workforce Development (DLWD), said the department wanted
to change the regulatory definition of straight commission from
a very narrow definition to ensure that the explanation the DLWD
provides employers and employees pertaining to straight sales
matched the regulatory definition. The department said that its
application of the narrow definition of straight commission
wasn't being used and the regulation changes addressed this.
3:58:55 PM
REPRESENTATIVE REINBOLD asked whether the department received
any "pushback" during public comment.
MR. MITCHELL recalled that the department did not receive a
significant number of comments. He suggested that the
department may have received approximately five comments, with
three in support, with two opposed.
REPRESENTATIVE REINBOLD asked whether the DLWD realized that
these changes represented significant impacts to the industry.
She suggested that the dealerships weigh in to brief the
committee on how the regulations impact them.
MR. MITCHELL agreed.
4:00:04 PM
CHAIR OLSON asked whether other industries were impacted by the
regulation changes.
MR. MITCHELL offered his belief that the bill has a definition
for "motor vehicle dealers' under AS [08.66.350], which involves
more than just cars, for example, boats. He deferred to the
sponsor to answer.
CHAIR OLSON remarked boats are a form of transportation.
REPRESENTATIVE JOSEPHSON pointed out that the definition in
proposed Sec. 2 of the bill refers to a separate definition for
motor vehicles. He clarified that this section refers to AS 45.
MR. MITCHELL agreed that proposed Sec. 2, referred to AS
[45.25.990] and the definition under [AS 08.66.350]. In
response to a question, he said he was not certain of the
nuances in paragraph (3) of proposed Sec. 2.
4:02:13 PM
REPRESENTATIVE JOSEPHSON said he wanted to grasp the concept of
commissions. He expressed interest that the auto dealership's
financing staff is also on commission since that job is more
administrative in nature.
MR. MITCHELL answered that the questions pertain more to
industry question since the DLWD hasn't done a study on car
dealership employees. He assumed employees fell under a variety
of salary payment methods, which might be the reason for the
attempt to exempt the employees. For example, if the employees
were paid on a straight commission, they would be excluded from
overtime. Thus, changing the law and excluding this specific
group would mean it wouldn't matter if the employees were paid a
straight commission or an hourly rate.
4:04:20 PM
MARTEN MARTENSEN, President, Alaska Auto Dealers Association
(AADA), offered to provide in layman's terms the reason the AADA
supports HB 276. He said that two years ago, an AADA member
came to the board and explained the business was being sued for
not paying their commission sales staff overtime. He said that
car dealers don't pay sales associates overtime since they are
exempt under AS 23.10.055, and earn a straight commission. The
plaintiff's attorney argued that the employees are not paid on
straight commission since the employees do not receive a
commission based on the fixed percentage of each sales dollar as
defined in regulations 8 AAC 15.910. At this point, the AADA
met with DLWD's Commissioner Bishop and Mr. Mitchell to express
concern over 8AAC 15.910. The AADA explained the standard
industry practice of dealerships is to pay sales associates
based on the net sales value or "profit."
4:06:40 PM
MR. MARTENSEN related a scenario in which in which the dealer
has an on the lot vehicle for sale at $20,000, after having paid
$18,000. The Continental Motors would pay its sales associates
25 percent of the $2,000 profit, or $500. The department
considered this and later agreed to change the regulation, which
was accomplished in September 2012.
MR. MARTENSEN said that with the regulation change the
dealership thought it was finally paying its sales staff within
the law, but the plaintiff's attorney argued that federal law 29
CFR 779.413 [pertaining to straight salary or hourly rates]
defines straight commission as Alaska's law. Since the
regulations help to clarify the law, the judge agreed with the
plaintiff's attorney so the auto dealers still have problems.
Therefore, the AADA supports HB 276 to change the statutes.
Finally, a federal law, 29 USC 213 (b) (10) (a), exempts car
sales associates from overtime, but Alaska statutes does not.
4:08:37 PM
REPRESENTATIVE JOSEPHSON said he was amazed that this has
recently arisen. He asked whether in the past 20 years anyone
has raised the issue and asked for clarification of the federal
statutes.
MR. MARTENSEN answered no; the issue has never been raised, and
it caught the industry off guard. He explained that, by law,
dealers must have written pay plans. He said his dealership has
been in business for 45 years and has had written pay plans that
clearly identify the salary provisions. Employees sign pay plan
agreements that specify straight commission. Unfortunately,
this seems to represent a loophole and the judge agreed that his
dealership is not abiding by law.
4:10:03 PM
REPRESENTATIVE REINBOLD summarized that the lawsuit ensued, that
the state sided with plaintiff and overturned the traditional
practices. She asked if she understood the issue correctly.
MR. MARTENSEN answered yes.
4:10:33 PM
REPRESENTATIVE JOSEPHSON remarked that his sense of this is
different; the state tried to support clarification of
regulations helpful to the industry, but the court system did
not support the practice.
MS. PIERSEN, in response to an earlier question, said that motor
vehicles fall under AS 28.10, which is where the definition
exists. The DLWD worked "hand-in-hand" with the auto dealership
to change the regulation, which was not recognized by federal
law. This bill would place the regulation into statute. She
did not think this bill would impact industry pay practices
since its payment practices haven't changed; in fact, this is
how the system has worked.
REPRESENTATIVE JOSEPHSON remarked that he was glad to hear about
the written pay plan.
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 276.
4:12:45 PM
REPRESENTATIVE REINBOLD moved to report HB [276] out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, HB 276 was reported
from the House Labor and Commerce Standing Committee.
The committee took an at-ease from 4:13 p.m. to 4:16 p.m.
HB 211-EMPLOYMENT OF PERSONS WITH DISABILITIES
4:16:18 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 211, "An Act relating to the education and
employment of individuals with disabilities."
4:16:23 PM
VASILIOS GIALOPSOS, Staff, Representative Charisse Millett,
Alaska State Legislature, stated that HB 211 will make Alaska an
employment-first state, which is a national movement for all
agencies in the state to work towards gainful, integrated
employment for persons with disabilities. This policy would
include education policy and how the persons are provided
service. This means those who have disabilities but are
gainfully employed live healthier lives, have a higher quality
of life, and incur lower health care costs.
MR. GIALOPSOS provided a section-by-section analysis of HB 211.
He said that proposed Section 1 would require the Department of
Education and Early Development (EED) to report to the Mental
Health Trust Authority with respect to the data collection on
the transition of services. Under Section 2, the bill would
also add an education plan to include a goal for children 15
years of age and older to become gainfully employed. He added
that this doesn't preclude post-secondary education.
4:18:29 PM
MR. GIALOPSOS stated that Sections 3-5 have the same
aspirational language imbedded in the requisite titles for the
DLWD, the Department of Health and Social Services (HSS) and the
Department of Administration. The fiscal notes show that this
is existing policy so the fiscal impact is absorbed by the
department and these departments have zero fiscal notes.
4:19:59 PM
REPRESENTATIVE CHENAULT referred to page 2, line 2, and offered
Conceptual Amendment 1, which would add after "time", "within
one year of leaving high school" and delete [the remainder of
subsection (c), after "time" which read, in part:
... for compensation that is
(1) at or above the minimum wage; and
(2) not less than the compensation paid by
the employer for the same or similar work performed by
an individual who is not disabled.
REPRESENTATIVE CHENAULT said that Mr. Gialopsos can explain what
this change would accomplish.
MR. GIALOPSOS explained the reason for Conceptual Amendment 1 is
to conform to the legislative intent to take the same data
collection requirements that the EED is required to perform with
respect to special education with no impact to the department.
4:21:40 PM
REPRESENTATIVE JOSEPHSON asked whether the legislature would no
longer set a mandate for minimum wages.
MR. GIALOPSOS answered no; that the definitions would apply to
the goals for persons with disabilities in other titles. He
explained that Conceptual Amendment 1 pertains to data
collection for transitional services. The goals will still be
present, but the way the language was imbedded in the bill it
required data collection the department does not currently
perform, although this data is collected by the DLWD. Thus,
Conceptual Amendment 1 would eliminate the redundancy and focus
on the transition services of those 15 years of age and older.
There being no objection, Conceptual Amendment 1 was adopted.
4:22:49 PM
RON PAUL, Disabilities Employment Specialist, Frontier Community
Services (FCS), explained that FCS is a non-profit organization
that provides services for people of all ages and has served 190
persons with a disability under its behavioral health support
employment program. Currently, 26 of its 38 enrolled clients
are gainfully employed for a 68 percent employment rate. He
reported that FCS's clients from referrals through Serenity
House, the adult probation office, ALELA, the Peninsula
Community Health Center, and vocational rehabilitation office
have serious disabilities. He offered his belief that without
the program, these individuals would likely not be employed.
4:24:17 PM
MR. PAUL provided specific examples of persons with disabilities
that the FCS has assisted, including assisting an incarcerated
person who is now working on the North Slope, a homeless woman
now working in retail, and an obese man who has been able to
sufficiently deal with issues allow him to attend community
college and live in his own apartment. He illustrated the value
of FCS, given that disabled people who come to the program
basically "have nowhere to go" but are assisted by the program
and become gainfully employed.
MR. PAUL said he was unsure how those individuals who are
seriously disabled and confined to wheelchairs will obtain help.
He offered his belief that no matter what disability people
have, they deserve the opportunity to secure meaningful and
gainful employment and receive the same assistance and respect
as those not disabled.
4:28:20 PM
CATHY BABUSCIO, Director of Human Resources, Mat-Su Regional
Medical Center (MSRMC), said MSRMC's project search program is a
unique "business led" vocational rehabilitation program for
adult students 18-22 years of age who experience disabilities.
This program provides students who want to work an opportunity
to develop transferable job skills. The ultimate program goal
is independent adults securing employment within their
communities. She explained that students experience full
immersion at the hospital, and individualized jobs, development,
and placement occurs based on student strength and skills. The
project search program is a collaborative effort between the
Matanuska-Susitna Borough School District, the Governor's
Council on Disabilities and Special Education, and the Division
of Vocational Rehabilitation. The MSRMC has had three
successful program completions with 100 percent employment of
their students. She pointed out the average wage is greater
than $13 per hour. Additionally, 20 percent of those completing
the program have been awarded positions at the MSRMC. She
stated that this program has increased employee satisfaction and
has benefitted the hospital with dedicated and skilled workers.
She said that the MSRMC supports employment first.
4:30:03 PM
RIC NELSON, Member, Governor's Council on Disabilities & Special
Education, testified through an interpreter, as follows:
Good evening, Mr. Chair. I have my Bachelor's
[degree] in business administration. I've always been
told I'll never be able to work or even able to give
back to society. You know, I've worked a couple part-
time jobs and every time I've worked, people have
enjoyed working with me. I bring a different take on
life on how people work with disabilities. And within
a year or two after I graduate with my Masters
[degree], I want to start my own business. I want to
open an agency that serves people with disabilities.
I want to give back for what I have gotten through
with my life. I want to make sure that people can
work in their own community doing whatever they want.
I urge to please pass HB 211.
4:35:13 PM
ERIC YANUSZ provided his testimony, as follows:
I am Eric Yanusz and I'm currently working at REACH,
where Cathy works, too. [In] my first rotation the
day surgery is sanitized, dusted: take out trash,
repair the chemicals, [and] clean the lobby area.
Second rotation, food service: fill required buckets,
wipe tables, wrap silverware, [and] refill napkins.
Indisc. I don't know my third rotation.
4:36:01 PM
LUANN YANUSZ stated that she is the parent of a 21-year-old son,
[the previous testifier], with disabilities. She explained that
parents of children with disabilities do not know what to
expect, how much they will be able to learn or do, or
contribute. She said her son hasn't received a high school
diploma so he is in a lower range than many in society. In his
current program, "Project Search" and other job training
programs, he has learned what employers expect of him, such as
to be at work every day, develop a good work ethic, show
initiative, and follow the rules. She said he is hoping through
the transition from Project Search to get at least a half-time
job and continue his work routine. She said he will be out of
the school district this May and he is very "routine oriented."
She hoped the transitional services will provide assistance so
his routine from working at school to working in the community
can continue instead of him watching television. If he is
watching television, he will know the television schedule.
Under the program, he is gainfully employed in the community,
learns how to take the bus and get to his job, what the employer
expects, and would earn appropriate wages. In conclusion, she
said, she supports the employment first bill.
4:38:41 PM
MILLIE RYAN, Executive Director, REACH, Inc., stated that REACH
serves about 400 individuals, primarily with intellectual and
developmental disabilities in northern Southeast Alaska. One
service REACH provides is employment, and it is currently
implementing employment-first policies across the agency. For
example, when people are developing their service plans, the
first thing REACH asks about is employment. REACH has collected
baseline information on the percent of youth and adults who have
employment goals in their service plans. She indicated that
REACH's board of directors will be setting targets over the next
five years. She stated that providers can do a lot to support
people and help them get employment but the state must provide
strong policies that promote employment as the preferred outcome
for individuals with developmental disabilities. She emphasized
that HB 211 will really make that happen. She thanked members
for the opportunity to support of HB 211.
4:40:08 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 211.
4:40:23 PM
REPRESENTATIVE MILLETT remarked that she was appointed last year
to serve on the Governor's Council on Disabilities & Special
Education (GCDSE). She said it has been an honor to work with
the GCDSE, including those present today. She said the GCDSE's
priority legislation is HB 211 and HB 212. She said the
legislature is working on healthy communities and the
legislature's priorities are to make sure that businesses grow
and help individuals become independent. She said that a job
does wonders for people, in terms of depression, suicide, self-
worth, caring for self, developing a social life, and meeting
people, and being an active part of the community is something
everyone in Alaska deserves. This bill would help us recognize
individuals for their special qualities. She said, "The sky is
the limit. As they grow and learn skills, the limitations they
overcome are phenomenal." She has observed Ric Nelson graduate
from college. She is thrilled he is working towards his
Master's Degree. She said he is an inspirational person and it
is meaningful to speak with him to learn about his life. She
said that Teresa Holt has been an excellent executive director
for the council. She said she has probably learned more from
serving on this council from the human perspective and it was an
honor to carry the bill. The bill is truly a work in
collaboration with a lot of people who care. She characterized
the council as being a dedicated group.
REPRESENTATIVE MILLETT moved to report HB 211, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes.
4:44:26 PM
There being no objection, the CSHB 211(L&C) was reported from
the House Labor and Commerce Standing Committee.
4:44:34 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:44 p.m.