Legislature(2019 - 2020)GRUENBERG 120
05/09/2019 03:00 PM House STATE AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HR11 | |
| Presentation(s): Missing and Murdered Indigenous Women | |
| HB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HR 11 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 28 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
May 9, 2019
3:05 p.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Jonathan Kreiss-Tomkins, Co-Chair
Representative Grier Hopkins
Representative Andi Story
Representative Adam Wool
Representative Laddie Shaw
MEMBERS ABSENT
Representative Sarah Vance
COMMITTEE CALENDAR
HOUSE RESOLUTION NO. 11
Supporting the renaming of Saginaw Bay as Skanax Bay.
- HEARD & HELD
PRESENTATION(S): MISSING AND MURDERED INDIGENOUS WOMEN
- HEARD
HOUSE BILL NO. 28
"An Act relating to an annual report concerning the payment of
equal pay for comparable work; increasing the minimum wage; and
providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HR 11
SHORT TITLE: RENAME SAGINAW BAY AS SKANAX BAY
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS
05/08/19 (H) READ THE FIRST TIME - REFERRALS
05/08/19 (H) STA
05/09/19 (H) STA AT 3:00 PM GRUENBERG 120
BILL: HB 28
SHORT TITLE: EQUAL PAY & MINIMUM WAGE ACT
SPONSOR(s): REPRESENTATIVE(s) TARR
02/20/19 (H) PREFILE RELEASED 1/11/19
02/20/19 (H) READ THE FIRST TIME - REFERRALS
02/20/19 (H) STA, L&C
05/02/19 (H) STA AT 3:00 PM GRUENBERG 120
05/02/19 (H) <Bill Hearing Canceled>
05/09/19 (H) STA AT 3:00 PM GRUENBERG 120
WITNESS REGISTER
MIKE JACKSON
Organized Village of Kake
Kake, Alaska
POSITION STATEMENT: Provided information during the hearing on
HR 11.
DAWN JACKSON, Executive Director
Organized Village of Kake
Kake, Alaska
POSITION STATEMENT: Provided information during the hearing on
HR 11.
ROBERT MILLS
Kake, Alaska
POSITION STATEMENT: Testified in support of HR 11.
JOEL JACKSON, President
Organized Village of Kake
Kake, Alaska
POSITION STATEMENT: Provided information during the
presentation, entitled "Missing and Murdered Indigenous Women."
WALT MONEGAN
Eagle River, Alaska
POSITION STATEMENT: Provided information during the
presentation, entitled "Missing and Murdered Indigenous Women."
CAPTAIN DAVID HANSON, Commander
Alaska Bureau of Investigation (ABI)
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Provided information during the
presentation, entitled "Missing and Murdered Indigenous Women."
CAPTAIN MICHAEL DUXBURY, Deputy Commissioner
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Provided information during the
presentation, entitled "Missing and Murdered Indigenous Women."
RANDY MCPHERRON
Alaska State Troopers
Anchorage, Alaska
POSITION STATEMENT: Provided information during the
presentation, entitled "Missing and Murdered Indigenous Women."
ANDREW BEANE, Vice President
Service Employees International Union (SEIU) 775
Seattle, Washington
POSITION STATEMENT: Provided information during the hearing on
HB 28 with the use of a PowerPoint presentation.
ANNA GODOEY, Research Economist
Center on Wage and Employment (CWED)
University of California, Berkeley
Berkeley, California
POSITION STATEMENT: Provided information during the hearing on
HB 28 with the use of a PowerPoint presentation.
REPRESENTATIVE GERAN TARR
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 28, as prime sponsor, with the
use of a PowerPoint presentation.
ACTION NARRATIVE
3:05:05 PM
CO-CHAIR ZACK FIELDS called the House State Affairs Standing
Committee meeting to order at 3:05 p.m. Representatives
Hopkins, Story, Shaw, Kreiss-Tomkins, and Fields were present at
the call to order. Representative Wool arrived as the meeting
was in progress.
HR 11-RENAME SAGINAW BAY AS SKANAX BAY
3:05:16 PM
CO-CHAIR FIELDS announced that the first order of business would
be HOUSE RESOLUTION NO. 11, Supporting the renaming of Saginaw
Bay as Skanax Bay.
3:05:26 PM
CO-CHAIR KREISS-TOMKINS, as prime sponsor of HR 11, paraphrased
from the sponsor statement, which read as follows:
House Resolution 11 would express the Alaska House of
Representatives' support for renaming Saginaw Bay as
Skanax Bay. The bay is situated on the northern coast
of Kuiu Island in the Alexander Archipelago and is
located across the Keku Straight from the community of
Kake.
The bay was named after the USS Saginaw, a United
States Navy ship that shelled Kake in 1869, destroying
three civilian villages and three smaller campsites.
The destruction from the shelling led to an unknown
number of deaths by starvation and exposure during the
following winter.
The bay's current name is an affront to the local
Tlingit community and a source of discomfort for many
residents of the City of Kake and the Organized
Village of Kake. Renaming Saginaw Bay to Skanax Bay
is a constructive step toward the healing of local
Tlingit communities.
CO-CHAIR KREISS-TOMKINS added that the bay to be renamed is
important for subsistence; Skanax is the Tlingit name for the
bay; and there is universal support from the community and local
governments. He said that he became aware of the bay a year ago
at the Central Council of Tlingit and Haida Indian Tribes annual
gala. The proposed resolution, if passed, would support the
application submitted to the U.S. Board on Geographic Names for
renaming the bay.
3:08:08 PM
REPRESENTATIVE STORY asked about the meaning of "Skanax."
CO-CHAIR KREISS-TOMKINS deferred to the invited testifiers to
answer the question.
REPRESENTATIVE HOPKINS asked whether there were any other bays
with similarly tragic histories.
CO-CHAIR KREISS-TOMKINS described his interest and experience
with geographic names. He stated that he is not aware of other
place names with similarly problematic origins, except for
Saginaw Strait near Juneau - also named for the USS Saginaw -
and brought to his attention by the Alaska Department of Fish &
Game (ADF&G).
REPRESENTATIVE HOPKINS asked whether there is a name database
that tracks historical names in Alaska.
CO-CHAIR KREISS-TOMKINS expressed his belief that Alaska may
create its own place names; however, they would not be publicly
reflected because the State of Alaska is secondary to the
federal government as an authority on place names. He stated
that the federal government does have such a database, which is
very detailed, called the U.S. Geographic Names Information
System (USGNIS).
3:12:42 PM
REPRESENTATIVE STORY asked about the full process for securing a
name change and whether there were plans to educate the
community.
CO-CHAIR KREISS-TOMKINS suggested that the community is broadly
aware of the origin of the name of Saginaw Bay.
REPRESENTATIVE STORY clarified that by "community," she is
referring to Southeast Alaska.
CO-CHAIR KREISS-TOMKINS concurred that awareness is hugely
important; now that the application has been submitted, efforts
can be made to raise awareness; the resolution will contribute
to the effort. In response to Representative Story's first
question, he said that the application goes to the U.S. Board on
Geographic Names; the board has criteria for evaluation; and the
criteria includes the existence of local support or opposition.
3:16:46 PM
REPRESENTATIVE WOOL asked about the origin of the name
"Saginaw," which is a name used by the indigenous people of
Michigan.
CO-CHAIR KREISS-TOMKINS said that the bay was named after the
USS Saginaw but added that he does not know whether the ship was
named after Saginaw, Michigan.
3:18:01 PM
MIKE JACKSON, Organized Village of Kake, testified that his
knowledge of the bombardments of Kake from 1803-1856 came to him
through family stories; his great grandfather described
firsthand the bombardment of the traditional lands of the
Natives living in Kake. He described several incidents of the
conflict, including destruction of property and lives lost. He
stated that he participated in a 1999 video-taped testimony
before federal government officials of the Bureau of Land
Management (BLM) and the Department of Defense (DoD) that
recorded these events. He mentioned that "Tyee" is a
traditional name for the southern tip of Admiralty Island;
places in this area that were renamed since the conflict are
"Murder Cove," "Surprise Harbor," "Meade Point" - after Richard
Meade, captain of the USS Saginaw, and "Retaliation Point."
3:24:31 PM
DAWN JACKSON, Executive Director, Organized Village of Kake,
offered a short message in Tlingit and introduced herself. She
testified that in 2018, the Organized Village of Kake - the
federally recognized tribal government serving the Kake area -
unanimously passed a resolution [Resolution No. 2018-20] to
change the name of Saginaw Bay back to its traditional Native
name - Skanax Bay. She mentioned the traditional uses of the
bay by her ancestors. She maintained that her clan never
relinquished the rights to the bay and were well known to the
U.S. government for defending the land and the people in the
area. She said that in 2011, a shell was discovered in a house
owned by her family; the U.S. Army dispatched a bomb squad to
Kake; through the efforts of local leaders, the shell was saved
from destruction; it is currently on loan to the Sealaska
Heritage Institute in Juneau. She asserted that [renaming the
bay] would be the beginning of healing for the Native people in
the area.
3:27:56 PM
ROBERT MILLS testified that he provided Representative Kreiss-
Tomkins with the historical background for the name change
effort. He mentioned the absurdity of naming a bay after the
ship that bombarded Kake; Americans would never consider naming
any street near the World Trade Center [site of the terrorist
attacks of September 11, 2001] after Osama bin Laden. He
offered that his role is to bring awareness to the facts of the
history and the atrocities that have occurred. He asserted that
it is vital to acknowledge the history and the implicit bias and
stereotypes regarding Tlingit people in order to move forward,
resuscitate the Tlingit culture and way of life, and begin the
healing [process].
CO-CHAIR FIELDS closed public testimony on HR 11. He stated
that HR 11 would be held over.
^PRESENTATION(S): Missing and Murdered Indigenous Women
PRESENTATION(S): Missing and Murdered Indigenous Women
3:31:15 PM
CHAIR FIELDS announced that the next order of business would be
a presentation by the Department of Public Safety (DPS).
3:31:27 PM
JOEL JACKSON, President, Organized Village of Kake, stated that
in the past two years that he has been speaking on the topic of
missing and murdered indigenous women and rural public safety,
he has seen no change in the adequacy of law enforcement in
rural Alaska communities. He said that public safety is a basic
right of everyone regardless of where they live in Alaska. The
Village Public Safety Officer (VPSO) Program [DPS] exists, but
much needs to be done to make it an adequate law enforcement
agency, such as arming the officers and giving them more
authority to enforce local, state, and federal laws. They
currently rely on Alaska State Troopers (AST) [DPS], who
determine whether or not to respond to a case.
MR. JACKSON relayed that two women in his community were
murdered in the past three years; one murder was solved in 2016;
the other occurred in [2017] and has not been solved. He
maintained that it is unacceptable. He mentioned that if
someone shoots a deer or moose out of season, Alaska Department
of Fish & Game (ADF&G) officers respond in a couple hours; but,
if there is a murder in the village, it takes from 11-16 hours
for officers to respond. He declared that Alaska needs to make
human life a priority and make law enforcement available to the
small communities. He added that when using the 911 system in
Kake, the call first goes to the Ketchikan AST dispatch who asks
10-20 questions; then to AST or the SouthEast Alaska Regional
Health Consortium (SEARHC) for another 10-20 questions; and then
the local VPSO or health center. He asserted that it is a slow
and inadequate process.
MR. JACKSON relayed that there are murdered and missing women
all over Alaska; Alaska has the highest rate in the nation. He
lamented that people are afraid to go out. He said VPSO
officers are doing their best but need more authority and need
sidearms to respond and make arrests. He offered that domestic
violence calls are among the most dangerous calls, as well as
traffic stops.
3:38:28 PM
CO-CHAIR KREISS-TOMKINS thanked the testifiers.
CO-CHAIR FIELDS relayed that the House and Senate announced a
joint task force to look for ways to strengthen the VPSO program
and improve law enforcement response and investigative capacity.
He mentioned that there is inadequate investigative capacity
with only one Alaska Bureau of Investigation (ABI) [DPS]
investigator for 130 cold cases - 13 times fewer then what is
recommended under national benchmarks for staffing.
CO-CHAIR FIELDS asked for an explanation of how Alaska came to
have such inadequate staffing levels at ABI.
3:39:44 PM
WALT MONEGAN, as a former Commissioner of DPS, testified that
DPS has had difficulty in being able to recruit enough troopers
to fill the vacancies in the department. At the time when there
were 50-plus vacant positions, DPS began to hire long-term non-
permanent ("non-perm") troopers - retired troopers or police
officers - to be investigators so as not to take troopers out of
the field. Budget cuts resulted in the elimination of some of
the long-term non-perm positions.
3:42:20 PM
CO-CHAIR FIELDS asked, "What do you think would be an
appropriate staffing level ... in ABI for the 130 cold cases?"
MR. MONEGAN responded that ideally no investor should be
assigned more than 10-15 cases. He said that the nature of the
work requires an investigator be at the job long enough to
actively and continuously work a case and avoid passing it on to
another investigator.
CO-CHAIR FIELDS asked whether hiring more troopers in addition
to long-term non-perms might help reduce turnover; that is,
having troopers in investigator positions correlates with longer
tenures with the cases.
MR. MONEGAN replied that long-term non-perms benefit DPS because
they are not promoted or rotated to another assignment. He
added that long-term non-perms could make up a significant
portion of ABI and can serve as mentors to active troopers who
work alongside them.
CO-CHAIR FIELDS mentioned the importance of cold case
investigators in identifying serial killers.
MR. MONEGAN continued by stating that many state departments use
long-term non-perms; labor agreements do not preempt doing so.
Long-term non-perms are cheaper for the state because they are
salaried; and the employees like the arrangement because they
can collect their retirement as well as their salary.
3:45:44 PM
REPRESENTATIVE SHAW asked whether a task force has ever been
formed to look at the issue.
MR. MONEGAN answered that he cannot recall that being done; he
expressed that it would not be a bad idea. He recommended that
the group of investigators consist of a combination of long-term
non-perms and a few regular troopers; that could only be
achieved once there is adequate AST staffing, especially out in
the Bush.
3:47:01 PM
CAPTAIN DAVID HANSON, Commander, Alaska Bureau of Investigation
(ABI), Department of Public Safety (DPS), described his
responsibilities under DPS and investigative experience with the
department.
CO-CHAIR FIELDS offered that the lack of investigative capacity
regarding cold cases inhibits the state's ability to address the
issue of missing and murdered indigenous women. He asked
Captain Hanson to speak to current staffing in ABI as it relates
to the benchmark of 10-15 cases per investigator and the role of
DPS in the issue of missing and murdered indigenous women.
CAPTAIN HANSON stated that he supervises the Cold Case
Investigative Unit (CCIU) which consists of one long-term non-
perm investigator - Randy McPherron - who was a trooper for
about 25-30 years. He said that the cold case load - the 130
cases that has been mentioned - consists of unresolved homicides
or unresolved missing persons cases in which the person
disappeared under suspicious circumstances, and all the leads
have become cold. The cases are waiting for someone to come
forward, human remains to be discovered, or science to catch up
with technology for additional testing.
CAPTAIN HANSON stated that the number of missing and murdered
indigenous women cases is 12. There are several reasons why
cases become cold and cannot be worked: in six cases the one
and only suspect in the case died; in some there is no need to
investigate for the purpose of prosecution. He said that there
are two cases with viable leads that could be worked, and Mr.
McPherron has put forth robust investigative effort on the
cases.
3:51:45 PM
CO-CHAIR FIELDS asked the following questions: What is an
adequate staffing level at ABI? Are there approximately 130
cases to be investigated? Should there be ten times the current
number of staff to follow best practices for the profession?
CAPTAIN HANSON responded, "It depends." He said that when a
case reaches the status of "cold case," many dedicated
investigators have looked at the case for several years and were
unable to bring it to a conclusion. These aren't simple cases;
it may take a team of investigators a significant amount of time
to address just one case. He said that to enumerate the number
of people to effectively manage the number of cold cases is
difficult to do, because there are so many variables. He
maintained that additional funding for CCIU could increase the
manpower of the unit, which is sorely needed to solve the cold
cases.
CO-CHAIR FIELDS expressed his desire to secure more funding and
asked Captain Hanson for a recommended number of additional
staff.
CAPTAIN HANSON replied that before the unit was disbanded in
2015, there were four investigators positioned around the state
who stayed busy working cases. He offered that when the unit
disbanded, much of the work stopped because ABI staff had other
responsibilities. He said it would take a fair number of
investigators a significant amount of time to effectively
address the cases because of the complexity of the cases. This
would include reviewing the information, locating the evidence,
and putting together a useful investigative packet so that a
solved case is also a prosecutable case.
3:55:06 PM
CO-CHAIR KREISS-TOMKINS asked for a summary history of CCIU
within ABI and staffing levels over time.
CAPTAIN HANSON responded that the inception of CCIU was in 2002.
Since inception, it has arrested 11 individuals for first degree
murder - one on federal charges relating to the trans-Alaska
pipeline bombing and 13 additional cases. He said that he
doesn't recollect any more than four or five people at any one
time being assigned to CCIU; staffing level has been at zero.
When CCIU was functioning - as it is now - staff has been as few
as one. He maintained that CCIU does not just need
investigators; some of the older cases - before any easily
searchable reporting system - consist of boxes of "sticky
notes," Alaska Public Safety Information Network (APSIN)
printouts, and typed or hand-written notes that must be compiled
into a useable police report. There is a need for
administrative personnel to compile the records that are useable
to investigators. He maintained that Mr. McPherron has done
excellent work, such as on the recently solved Sophie Sergie
murder case [1993 sexual assault and murder in Fairbanks]; the
case was solved through new technology and with the help of
Maine state police. He maintained that solving this case
involved one investigator working one case for eight months,
which demonstrates the level of complexity of the case and
involvement of the investigator.
4:00:08 PM
CO-CHAIR KREISS-TOMKINS asked whether there is active
investigation in the Jade Williams case [8/15/17 suspicious
death in Kake].
CAPTAIN HANSON answered that he cannot discuss details of the
case; however, in general, any case that is still open - one
involving an unsolved or unresolved murder or suspicious death -
DPS is still investigating.
CO-CHAIR FIELDS asked for the ideal ratio of administrative
staff to cold case investigators.
CAPTAIN HANSON responded that one administrative person
supporting two to four cold case investigators is a reasonable
ratio.
4:03:02 PM
CAPTAIN MICHAEL DUXBURY, Deputy Commissioner, Department of
Public Safety (DPS), testified that there is a need for
additional staff in CCIU. He offered that DPS works cases and
provides the best possible services regardless of the location
of the event or demographic of the victim; however, the work is
inhibited by budget constraints. He reiterated that a great
deal of time and energy is required for cold case
investigations; in addition to the time Mr. McPherron spent on
the Sophie Sergie case, five different troopers put time into
the case consistently over the years. No cold case languishes
if there is any opportunity to further investigate. He stated
that DPS still gets tips on 20- and 30-year-old cases and
reopens them. He explained that the problem cannot be solved
with money alone; the individuals must be available to hire. He
expressed the satisfaction of solving a case and bringing the
family closure and justice. He emphasized that in the Sophie
Sergie case, "we never let it go, never erased it off our
plate." He maintained that similarly the Jade Williams case has
never been set aside. He lamented the misunderstandings
reported by Mr. Jackson but offered that DPS must communicate
within the parameters of the constitution. He said, "It's
heartbreaking for us to sit here and learn that somebody thinks
that it doesn't mean something to us ...." He maintained that
everyone on the investigative team takes seriously custodianship
over the responsibility it has been given. He reiterated that
the unit could use more people and more assistance from the
public; nevertheless, it uses every means available to
accomplish the task.
4:08:40 PM
REPRESENTATIVE WOOL complemented those who solved the Sophie
Sergie case. He asked when a case becomes a cold case.
4:09:35 PM
RANDY MCPHERRON, Alaska State Troopers, relayed his background
with DPS and stated that he returned to CCIU in 2013 after
retirement. The unit was disbanded in 2015; in 2017 he rejoined
it.
CO-CHAIR FIELDS reiterated the question, When does a case become
a cold case?
MR. MCPHERRON responded that it depends on the circumstances;
however, it is essentially when all leads have been exhausted,
interviews have been performed, evidence has been analyzed, and
no conclusive results have been produced.
CO-CHAIR KREISS-TOMKINS asked whether there is anything the
legislature can do to empower CCIU above and beyond the issues
of resources - funding and staffing.
MR. MCPHERRON stated that CCIU needs more people and more
funding for testing. He mentioned that the new evidence in the
Sophie Sergie case was discovered through a new deoxyribonucleic
acid (DNA) analysis; testing the samples and developing leads
cost money. Not just investigative personnel are needed, but
administrative personnel as well. He emphasized the extensive
work needed to organize a case and to organize and write a
report; some cases go back to the 1960s and 1970s during three
different computer systems, out-of-date report writing systems,
and technology changes. An investigator must keep up with the
technology changes and look for tie-ins to current cases. He
also mentors current investigators to pass on his knowledge and
experience.
4:13:49 PM
CO-CHAIR KREISS-TOMKINS asked for a description of types of
tests that are emerging tools for investigation and how
inadequate resources could be a barrier to the use of those
tests.
MR. MCPHERRON answered that forensic DNA started to be used in
the late 1990s and early 2000s. The unit was able to get a full
DNA profile of the suspect in the Sophie Sergie case in 2000,
but because the national DNA database did not have the suspect
in it, the case languished. Genetic genealogy emerged in the
last year and a half; it is a different type of DNA profile.
Forensic DNA profile is called a short tandem repeats (STR)
profile, which is a genetic fingerprint of an individual.
Genetic genealogy uses a single-nucleotide polymorphism (SNP)
profile, which is a blueprint of an individual; it reveals all
the genetic information that an individual shares with his/her
ancestors. Comparisons of genealogy databases have generated
new leads in cold cases. It was through this method that the
unit was able to identify the suspect and make an arrest.
REPRESENTATIVE FIELDS posed a question for DPS: What are the
issues related to data tracking, including on race or ethnicity,
and how does data tracking impact DPS's ability to address
missing and murdered indigenous women, including potential
patterns in unsolved homicides?
REPRESENTATIVE WOOL asked whether funding is a limiting factor
for testing all the DNA samples and comparing them to national
databases.
MR. MCPHERRON responded, no. He said that there is funding for
testing and cases are being worked through the process
described.
HB 28-EQUAL PAY & MINIMUM WAGE ACT
4:18:50 PM
CO-CHAIR FIELDS announced that the final order of business would
be HOUSE BILL NO. 28, "An Act relating to an annual report
concerning the payment of equal pay for comparable work;
increasing the minimum wage; and providing for an effective
date."
4:19:59 PM
ANDREW BEANE, Vice President, Service Employees International
Union (SEIU) 775, relayed that SEIU 775 is a labor union
representing 45,000 homecare and nursing home workers across the
states of Washington and Montana. He offered that after the $15
minimum wage law was passed at Seattle-Tacoma ("Sea-Tac")
International Airport in 2013 and in Seattle in 2014, he
directed an organization called "Working Washington" to organize
airport and fast food workers regarding the demand for a $15
minimum wage.
MR. BEANE began his PowerPoint presentation, entitled "$15
Minimum Wage in Seattle." Turning to slide 2, entitled
"Overview of Seattle Minimum Wage," he said that the Seattle
minimum wage law was the first in the country to pass; there was
broad demand from the public. There was a faster phase-in of
the law for large employers - those with over 500 employees - to
achieve the $15 minimum wage by 2017 and a slower phase-in for
smaller employers.
MR. BEANE relayed the information on slide 3, entitled "Dire
Predictions about the Minimum Wage," which read:
• Tom Douglas, operator of 15 high-end restaurants
in Seattle, predicted that the proposed minimum
wage would cause the city to "lose maybe a
quarter of the restaurants in town."
• North American Association of Subway Franchises
said, This ordinance means that franchises
cannot compete in the Seattle marketplace and
many franchise small businesses will cease to
exist."
• Andrew Friedman, proprietor of Liberty Bar, said,
"Local independent businesses will close, many of
your neighbors will be out of work."
MR. BEANE described the reality of what actually occurred as
shown on slide 5, entitled "Seattle's Booming Economy," which
read:
• Forbes ranked Seattle #1 "Best Place for
Business" in 2018
• Unemployment in Seattle going down
• In 2019, Seattle unemployment 3.3%, compared
to 3.8% nationally
• Economy in Seattle growing
• From 2014-2019, average annual job growth of
2.7% and income growth of 4.7%
• In 2019, Seattle 3rd in the nation for small
business growth
CO-CHAIR FIELDS asked whether an income growth of almost twice
that of job growth is higher than the national performance.
MR. BEANE replied that he didn't know.
REPRESENTATIVE WOOL asked whether Mr. Beane is implying that
Seattle raising the minimum wage and having a good economy is a
"cause and effect" relationship.
MR. BEANE stated that he is not implying that but is saying that
a city can raise the minimum wage and have a booming economy.
4:24:04 PM
MR. BEANE commented on Seattle's restaurant industry by
reviewing slide 6, entitled "Restaurant Industry Growing; Prices
Stable," which read:
• Seattle Times study of restaurants in 2017-2018
• 652 restaurants opened, 156 closed
• Net gain of 496 restaurants
• University of Washington longitudinal study of
food prices in local supermarkets
• No significant evidence of price increases
associated with the minimum wage ordinance
MR. BEANE provided information from slide 7, entitled "Job
Growth in Food Service," which read:
• Food prep and service make up 66% of low-wage
work in Seattle
• Steady increase in Seattle food service
employment: 27,300 new food service jobs created
in 2018
MR. BEANE added that since the minimum wage was enacted, there
has been competition for food service workers in Seattle, and
some of the other cities have raised their wages to compete with
Seattle. He reiterated that he is not saying that these things
occurred because of the minimum wage but that the worst
predictions did not occur.
MR. BEANE reviewed the results of a University of Washington
study, displayed on slide 9, entitled "Study 1: Workers Earn
More and Keep their Jobs," which read in part as follows:
• University of Washington study of low-wage
workers in Seattle
• Workers take home more money
• Earnings increases were higher among
more experienced workers
MR. BEANE added that an initial study was done which showed a
decline in workers' hours resulting in them losing money; these
results were reported in the media; a subsequent study showed
the results to be erroneous and that workers were actually
taking home more money overall. Earnings were higher for more
experienced workers who worked the same hours but made more
money; hours may have decreased for some part-time workers, but
they made more money for fewer hours.
CO-CHAIR FIELDS asked about the high-profile study that Mr.
Beane cited. Representative Fields said that he recalled that
it was released prior to peer review. He asked what the
methodological flaws were with the study.
MR. BEANE responded that part of the problem was that the
researchers could only consider a small subset of the workforce
- about 40 percent - because they could only look at a certain
size business over time. When they repeated the study, they had
a completely different finding.
REPRESENTATIVE HOPKINS asked what the people who opposed the
minimum wage are now saying about the impact on the economy [of
Seattle].
MR. BEANE replied that the restaurant owners have adjusted
restaurant management to accommodate the minimum wage. He
continued with slide 9, which read:
• Workers are not losing their jobs
• Workers experienced no significant decline
in their likelihood of being employed
• Workers are less likely to job hop
• Minimum wage increase was associated with
an 8% reduction in turnover rates
4:29:12 PM
MR. BEANE described a second study shown on slide 10, entitled
"Study 2 Food Service Workers Paid More," which read:
Berkeley study of Seattle food service and restaurant
workers
• Wages increased, especially in businesses without
tips
• Biggest wage gains were in limited-service/
fast food restaurants
• Workers are not losing their jobs
• Employment remained stable, even in fast
food franchises that predicted disemployment
MR. BEANE relayed additional statistics from slide 11, entitled
"Higher Minimum Wages Improve Race and Gender Equity," which
read:
• Before the minimum wage ordinance in Seattle:
• 40% of Black, API and Latino workers made <
$15, compared to 25% of white workers
• 34% of women made < $15, compared to 27% of
men
• In states with low minimum wages, the gender pay
gap is 25% wider
MR. BEANE gave examples of the gender pay gap in two states:
Wyoming has a minimum wage of $7.25 and a woman makes $.64 for
every $1 a man makes; New York has a minimum wage of $15 and a
woman makes $.89 for every $1 a man makes.
MR. BEANE continued by discussing the relationship between
minimum wage and the economy. He mentioned the "middle-out"
theory of economics, which maintains that if low-wage workers
have more money, they will spend it in local businesses which,
in turn, spurs the economy. He reviewed the information on
slide 12, entitled "Higher Minimum Wages Improve Economic
Equality and Prosperity," which read:
Higher minimum wages:
• Increase consumer spending and spur investment in
the economy
• Low-wage workers are more likely than others
to spend extra earnings immediately on
previously unaffordable goods and services
• A $2.55 increase in federal minimum wage
would:
• Increase earnings of low-wage workers
by $40 billion
• Increase economic activity by $25
billion
• Generate 100,000 new jobs
• Reduce income inequality
• For each $1 increase in minimum wages, 0.3%
of income redistributed from top to bottom
quartiles
MR. BEANE referred to slide 13, entitled "Cities and States
Adopting $15 Minimum Wage," to point out the cities and states
that have passed a $15 minimum wage since Seattle passed the
minimum wage. He added that there is now proposed federal
legislation to enact a $15 minimum wage. It is believed that
there are about 21 million workers on a path to having a $15
minimum wage. The cities are: Flagstaff, Arizona; Belmont,
Cupertino, El Cerrito, Los Angeles, Mountain View, Palo Alto,
Redwood, Richmond, San Francisco, San Jose, San Mateo, Santa
Clara, and Sunnyvale - in California; Minneapolis and St. Paul
in Minnesota; Greensboro, New York City, and Syracuse in New
York; Greensboro, North Carolina; Portland, Oregon; Pittsburgh,
Pennsylvania; and SeaTac, Washington. The states are
California, Massachusetts, New Jersey, New York, and Washington,
D.C.
MR. BEANE pointed out the companies that have seen the minimum
wage as a positive development, as shown on slide 14, entitled
"Companies Adopting $15/Hour Minimum Wage," which read:
• Ben & Jerry's: $16.92
• J.P. Morgan Chase & Co: $16.40
• Aetna: $16
• Amazon: $15 for 350,000 full-time, part-time,
temporary and seasonal employees
• Charter Communications: $15
• Costco: $15 for 245,000 employees in U.S. and
Canada
• Facebook: $15 for contractors
• Nationwide Mutual Insurance: $15
• University of California: $15
• Walt Disney theme parks: $15
CO-CHAIR KREISS-TOMKINS asked which of the listed states
currently have an effective $15 minimum wage.
MR. BEANE expressed his belief that every state [listed] is
phasing it in gradually.
REPRESENTATIVE WOOL stated that he supports a higher minimum
wage in theory. He suggested that many of the states and cities
that have adopted the minimum wage are places in which the
economies are booming. The companies listed [on slide 14] can
well afford it. He mentioned that small businesses or regions
with depressed economies - "middle America" - may not be able to
absorb the payroll increase.
4:35:09 PM
MR. BEANE responded that in Seattle, the small businesses were
given more time to adjust. He mentioned a study in South
Dakota, which is a struggling rural economy, and there was no
net decrease in employment after raising the minimum wage.
REPRESENTATIVE HOPKINS suggested that the impacts to roadside
restaurants could be looked at in northern New York, because
that region can be quite rural.
CO-CHAIR FIELDS added that there are rural regions of California
that are demographically like Alaska in terms of high
unemployment and low wages.
MR. BEANE offered three stories depicting people whose lives
were impacted by the minimum wage law, shown on slide 15, which
read:
Erin, barista for Compass Group: Erin lives 30 minutes
outside Seattle to afford rent and struggled to pay
bills. Since the minimum wage increase, she can pay
bills and afford occasional date nights.
Anthony, print shop attendant at Starbucks HQ: Before
the minimum wage ordinance, he moved in with a friend
to avoid homelessness. Now he can afford his own
place.
Darryl, home care worker: "Now I have more food at the
end of the month, and I'm not trying to stretch those
groceries for a week and a half. I'm feeding myself
better."
REPRESENTATIVE STORY referred to the chart on slide 2, entitled
"Seattle's Minimum Wage," and pointed out that the small
employers are in a phase-in period; and the study Mr. Beane
cited included the large employers, which have had the $15
minimum wage since 2018. She asked for citations for the
studies that Mr. Beane referenced and the sample sizes.
MR. BEANE said that he could provide the citations. The
University of Washington study was performed in October 2018 and
the Berkeley study was performed in June 2017. At that time the
minimum wages were approaching $15 or slightly less.
REPRESENTATIVE STORY asked for confirmation that the study of
large employers runs from January to October 2018 when the $15
minimum wage was in effect. The rest of the chart [2015-2017]
shows the phase-in of the wage increase.
MR. BEANE concurred.
REPRESENTATIVE WOOL asked Mr. Beane if he has seen restaurants
moving away from tipping in response to the minimum wage
increase - in other words - informing the public that they don't
except tips, but there is a percentage increase in the cost of
the meal due to paying higher wages. He said that there has
already been a trend in that direction.
MR. BEANE mentioned that many of the restaurants that moved in
that direction are going back to tipping due to competition for
service industry employees; the employees wanted tipping because
they made more money. He maintained that the job market in
Seattle is very tight.
REPRESENTATIVE WOOL offered that eliminating tipping only works
if all the restaurants participate.
CO-CHAIR FIELDS stated that in Alaska, tipped employees are not
exempt from the minimum wage; Alaska has a $10 minimum wage and
employees earn tips in addition. He asked whether there are
other states who have adopted a $15 minimum wage that do not
exempt tipped employees from the minimum wage.
MR. BEANE answered yes, California and Washington. In Seattle,
an employer must pay the state minimum wage of $13.50 and "can
tip above it to [$15]." He confirmed for Representative Wool
that of the states and cities [with the $15 minimum wage] some
have tipped employee exemptions. He added that generally the
states on the West Coast do not have the exemptions, and states
on the East Coast do.
4:41:13 PM
ANNA GODOEY, Research Economist, Center on Wage and Employment
(CWED), University of California, Berkeley, presented key
findings from two recent studies with the use of a PowerPoint
presentation, entitled "Downstream effects of higher minimum
wages." She referred to slide 2 and relayed that in the U.S.,
there is substantial variation in state and local minimum wage
policies, especially in the past 20 years; there has been an
uptick in the number of states that have implemented minimum
wages well above the federal level of $7.25 per hour.
Researchers have examined the effect of minimum wage policies on
labor demand and whether employers respond to the higher wages
by hiring fewer workers or cutting back hours. She stated that
the studies she will present move beyond the narrow economic
outcomes to look at the downstream effects of minimum wages: 1)
the effects of the minimum wage on suicides; and 2) the effects
of the minimum wage on parental labor supply and child poverty.
MS. GODOEY turned to slide 3 to cite the first study, entitled
"Can Economic Policies Reduce Deaths of Despair." She stated
that the first study was prompted by troubling trends in
mortality of less educated Americans. For the first time in a
hundred years, life expectancy of Americans was declining, and
the decline was driven primarily by the increased deaths rates
from alcohol, drugs, and suicide. The increase was especially
large among Americans without a college degree. The study
sought to determine whether economic policies aimed at low-wage
workers could make a difference; one of the policies considered
was minimum wage.
MS. GODOEY moved on to slide 4 and relayed that the researchers
used data from the Centers for Disease Control and Prevention
(CDC) on all deaths from 1999 through 2015. They found that
neither policy - earned income tax credit (EITC) nor minimum
wage - had any effect on drug-related deaths; however, economic
policies significantly affected the number of deaths from non-
drug suicides.
MS. GODOEY referred to the graphs on slide 5, which summarized
the key findings: the number of suicides among Americans with a
high school education or less changed about the time of the
policy changes. She explained that the graph on the right side
of slide 5 shows the effects of a 10 percent increase in the
minimum wage; in the year when the minimum wage increased, the
number of suicides dropped significantly. She mentioned the
concern for spurious correlations: in states with booming
economies that implement higher minimum wages, it may be the
booming economy that is correlated with improved mental health
and not the policy. She pointed out from the graph, that is
unlikely, due to the suddenness of the decrease in suicide
rates. The trend in the graph indicates that it is the economic
policy driving the reduction in suicides.
4:45:54 PM
MS. GODOEY referred to slide 6 and stated that on average, a 10
percent increase in minimum wage reduced the number of suicides
by 3.6 percent among adults without college degrees; over the
study period, that corresponds to a reduction in suicides of
about 480 lives per year.
MS. GODOEY turned to slide 7 to introduce the second study,
entitled "Parental Labor Supply: Evidence From Minimum Wage
Changes." This study analyzed the impact of minimum wage on
families with young children. She said that the stereotypical
minimum wage worker is a teenager who works part-time for
spending money; however, the minimum wage workforce is
remarkably diverse. Many minimum wage workers have children and
are working to support their families. The estimate used for
the study is that around 30 percent of minimum wage workers have
minor children. Parents with children face very different
circumstances and barriers than adult without children, such as
the cost of childcare. She added that the researchers used the
current population survey, which is the labor force survey.
MS. GODOEY moved on to slide 8 to relay the key findings of the
study, which are: higher minimum wages increased the employment
rates of parents and the hours worked; higher minimum wages
reduced the probability that low income families would receive
income from public assistance or welfare. She maintained that
the findings suggest that higher minimum wages play a role in
shifting the poorest families off cash welfare and into the
labor force. For single mothers, the greatest effects were
among mothers of preschool age children suggesting that higher
minimum wages allow these women to overcome the barrier of
childcare costs.
MS. GODOEY continued by saying that the increases in the
employment wages of parents have significant effects on
children. For children whose mothers did not have college
educations, a 10 percent increase in the minimum wage reduced
poverty by just under 6 percent; for children of single mothers,
the reduction was 11 percent; for preschool age children,
poverty was down 9.7 percent. She maintained that the results
are important because they are so well established with
literature linking childhood poverty to worse outcomes. For low
income families, raising family incomes has been found to raise
[children's] test scores, improved health, and even improved
economic self-sufficiency among women. She said that
additionally there is evidence suggesting that children whose
parents are on welfare themselves have a higher risk of
receiving public assistance as adults. She offered that
findings that higher minimum wages reduce welfare receipt and
child poverty point to the potential dynamic effect of higher
minimum wages; increasing wages today could have a future payoff
of improved educational outcomes and economic health
sufficiency.
MS. GODOEY concluded that the two studies, as well as other
studies ongoing across the country, point to important
downstream effects of minimum wages that go well beyond narrow
economic outcomes like employment and wages.
4:49:43 PM
CO-CHAIR FIELDS asked Ms. Godoey to specify the welfare programs
to which she referred.
MS. GODOEY answered that the programs were Temporary Assistance
for Needy Families (TANF) and Aid to Families with Dependent
Children (AFDC).
CO-CHAIR FIELDS asked for a scenario that includes a region most
demographically analogous to Alaska that has implemented a
higher minimum wage.
MS. GODOEY replied that she didn't have a good answer; however,
she mentioned that she has information on other states and would
provide it to the committee.
REPRESENTATIVE STORY asked about the sample sizes in the
studies.
MS. GODOEY responded that for the mortality study, the sample
consisted of all U.S. deaths from 1999-2017 minus the four
states that do not provide education data on the death records -
46 states plus Washington, D.C. For the "Parental Labor Supply"
paper, the study population was from the labor force survey;
therefore, the sample size is large - in the hundreds of
thousands. The sample of parents with high school education or
less since 1980 consisted of 280,000 observations; eliminating
anyone earning $15 per hour measured in 2016 dollars, resulted
in 125,000 observations.
REPRESENTATIVE STORY asked for the standard error of the
estimates.
MS. GODOEY answered that she could provide that information;
however, she offered that all the effects that she discussed
were significant at the 5 percent level or better.
4:53:53 PM
REPRESENTATIVE GERAN TARR, Alaska State Legislature, as prime
sponsor of HB 28, presented the proposed legislation with the
use of a PowerPoint presentation, entitled "House Bill 28 -
Equal Pay & Minimum Wage." She referred to slide 2 of the
presentation, entitled "Top 5 Myths About Minimum Wage," which
read:
head2right Myth 1 - History of Minimum Wage
head2right Myth 2 - Who is the Minimum Wage Worker?
head2right Myth 3 - Increasing Wages Harms the Economy
head2right Myth 4 Has to be One Size Fits All
head2right Myth 5 Leads to Job Loss
head2right Moving towards evolution of a system
REPRESENTATIVE TARR turned to slide 3, entitled "2019 Minimum
Wage in Alaska," which read:
head2right 2014 Ballot Initiative raised minimum wage from
$7.75 to $8.75 on January 1, 2015, then again to
$9.75 per hour on January 1, 2016
head2right Added an annual inflation adjustment to remain
$1.00 higher than federal minimum wage
head2right Tips do not count toward minimum wage
head2right Passed by 69% of the vote
REPRESENTATIVE TARR added that the minimum wage in Alaska is
annually adjusted with inflation: the 2017 wage was $9.80; the
2018 wage was $9.84; and the 2019 wage was $9.89. She offered
that one of the challenges of a down economy is that the wage
adjustments may not be at the same rate as increases in the cost
of food, housing, and health care.
REPRESENTATIVE TARR moved to slide 4, entitled "Myth 1 - History
of Minimum Wage," which read:
head2right 1938 President Roosevelt signs the Fair Labor
Standards Act establishing minimum wage of 25
cents an hour to maintain a
"minimum standard of living necessary for
health, efficiency, and general well-being."
REPRESENTATIVE TARR continued with slide 5, entitled "Minimum
Wage Increases Over the Years," to point out that even though
wages have increased over the years from 1938-2009, when wages
are adjusted to 2014 dollars, buying power has not always
increased; in other words, wages have not kept up with
inflation, as shown on the graph on slide 6, entitled "Wages and
Inflation."
REPRESENTATIVE TARR moved on to slide 7, entitled "Myth 2 - Who
is the Minimum Wage Worker?" She relayed the information on the
slide: People think that the minimum wage worker is the
teenager who lives at home and works part-time after school for
extra spending money. The reality is that the minimum wage
worker's average age is 35; 88 percent are 20 or older; 36
percent are 40 or older; 56 percent are women; 28 percent have
children; and on average, minimum wage workers earn half of
their family's total income.
REPRESENTATIVE TARR referred to the information in the sponsor
statement to relay that the Massachusetts Institute of
Technology (MIT) performed a study to establish what a living
wage is for Alaska. The study indicated that a living wage for
one individual is $12.89 [per hour], which is $3 over Alaska's
minimum wage. For one adult and one child, the living wage is
$27.49, which she maintained demonstrates the significant
disparity between earnings and financial needs.
REPRESENTATIVE TARR turned to slide 8, entitled "Myth 3 -
Raising Wages Hurts the Economy," which read:
head2right 18 other states increased minimum wages in 2019
head2right Eighteen states began the new year with higher minimum
wages.
head2right Eight states (Alaska, Florida, Minnesota,
Montana, New Jersey, Ohio, South Dakota and
Vermont) automatically increased their rates
based on the cost of living
head2right 10 states (Arizona, Arkansas, California,
Colorado, Maine, Massachusetts Missouri, New
York, Rhode Island and Washington) increased
their rates due to previously approved
legislation or ballot initiatives.
head2right Other states that will see rate increases during
the 2019 calendar year include D.C., Delaware,
Michigan and Oregon (NCSL)
REPRESENTATIVE TARR referred to a National Conference of State
Legislatures (NCSL) report, included in the committee packet,
which further details the minimum wage laws enacted in the
various states. She pointed out that most of the states that
raised their minimum wages did it gradually over time. She
mentioned that Missouri passed a minimum wage ballot initiative
last fall; it currently has a minimum wage of $8.60 and will
increase it to $12 effective 1/1/23. She also cited Michigan's
minimum wage - currently at $9.25 - to undergo a multi-year
increase resulting in $12.05 by 2030. She added that the cost
of living in both states is less than Alaska.
REPRESENTATIVE TARR stated that there are 13 states with a
higher minimum wage than Alaska; some have bigger economies and
have a higher cost of living; however, some do not. She
mentioned that Arizona and Maine have $11 minimum wages; these
two states are like Alaska in cost of living.
4:59:29 PM
REPRESENTATIVE TARR referred to slide 10, entitled "Myth 4 - Has
to be One Size Fits All," which read:
head2right Current Alaska Law has many exemptions
head2right Alaska Wage and Hour Act requirements do not apply to
any individual employed as follows:
head2right In agriculture
head2right In domestic service (babysitting) in a private
home
head2right Youth under age 18 employed part-time for not
more than 30 hours a week
head2right A person licensed and employed by a guide or
master guide
REPRESENTATIVE TARR moved on to slide 11, entitled "Myth 5 -
Leads to Job Loss," and cited an article, entitled "Argument for
and Against the $15 Minimum Wage for Health Care Workers" [by J.
Paul Leigh, PhD, American Journal of Public Health, 2019], not
included in the committee packet. She offered that the health
care industry is the fastest growing industry in Alaska, but
workers tend to be lower wage employees. In addressing Myth 5,
she relayed the research findings summarized on slide 11, which
read:
head2right Research does not support this
head2right Could be that fewer new jobs, but employees in those
jobs are paid more
head2right Research on health care workers accounted for this and
showed that increasing wages would lead to a reduction
in poverty rates of 27%, not 50%
head2right Demonstrating the difference between all workers
getting $15.00 and a reduced workforce getting $15.00
REPRESENTATIVE TARR turned to slide 12, entitled "Evolution of a
System," which read:
Current
head2right Workers work full-time, but still qualify for
benefits
head2right Workers depend on government funded programs for
healthcare, childcare, and food
With Living Wages
head2right Workers work full-time and can afford to purchase
healthcare, childcare, and food
Researchers estimate that if the federal minimum wage
were raised from $7.25 to $10.10 per hour would save
$4.6 billion in food stamps
REPRESENTATIVE TARR mentioned the economic inefficiency of the
transfer of money considering the cost of administering such
programs. She stated that the average monthly case load for
food stamps in Alaska for FY 18 was 41,945; for the Women,
Infants, and Children (WIC) program, the case load was 17,092;
11,358 individuals participated in breastfeeding counseling; the
WIC Farmers' Market Nutrition Program (FMNP) had 10,000
participants; and there were 203,000 Medicaid recipients. She
explained that all these programs are income-based; she
advocated for a system that supports "the dignity that comes
from people being paid a good wage for their hard work."
CO-CHAIR FIELDS posed the questions: Has anyone modeled impacts
on state budgets of higher wages and reduced dependence on
welfare and is such modeling possible?
[HB 28 was held over.]
5:04:10 PM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 5:04
p.m.