SENATE BILL NO. 1                                                                                                             
                                                                                                                                
     "An Act  increasing the minimum hourly  wage, and creating                                                                 
     an annual adjustment  to the minimum hourly  wage based on                                                                 
     the  rate of  inflation;  and providing  for an  effective                                                                 
     date."                                                                                                                     
                                                                                                                                
9:04:19 AM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  noted that SB 1  is in its second  hearing in                                                                 
the  Senate Finance  Committee.  He stated  his  intent was  to                                                                 
adopt the committee substitute (CS)  and take additional public                                                                 
testimony.                                                                                                                      
                                                                                                                                
Co-Chair  Hoffman  MOVED to  ADOPT  CSSB  1 LS0006/T.  Co-Chair                                                                 
Stedman OBJECTED for explanation.                                                                                               
                                                                                                                                
DARWIN  PETERSON, STAFF  TO CO-CHAIR  STEDMAN, spoke  about the                                                                 
legislation. He informed that the  CS version C states that the                                                                 
Alaska  will  choose  the  greater of  the  state  and  federal                                                                 
minimum wages  until the effective  date of January 1,  2010 at                                                                 
which time  the state  minimum wage will  be increased  to $.50                                                                 
above  the  federal   minimum  wage  and  that   rate  will  be                                                                 
maintained.                                                                                                                     
                                                                                                                                
9:07:33 AM  AT EASE                                                                                                           
9:07:40 AM  RECONVENED                                                                                                        
                                                                                                                                
Co-Chair  Stedman  WITHDREW  his   OBJECTION.  There  being  NO                                                                 
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI,  discussed the legislation.  He expressed                                                                 
appreciation   for  the   finance  committee's   work  on   the                                                                 
legislation. He stated that  the achieved compromise recognizes                                                                 
that there are people in  the community who are concerned about                                                                 
the  increases, as  well as  those who  believe that  the state                                                                 
needs an increase.  Alaska will fall below  the federal minimum                                                                 
wage in  July 2010 if  the current version  of the bill  is not                                                                 
accepted.  The bill  follows the  long standing  policy in  the                                                                 
state of remaining above $.50 over the federal minimum wage.                                                                    
                                                                                                                                
Co-Chair Stedman  MOVED to ADOPT Amendment  1. Co-Chair Stedman                                                                 
OBJECTED for discussion. He explained the Amendment.                                                                            
                                                                                                                                
     Page 1, lines 7 - 9:                                                                                                       
          Delete "the higher of $7.15 an hour or, for work                                                                      
     performed on or after the effective date of an actual                                                                      
     increase of the federal minimum wage to a rate higher                                                                      
     than $7.15 an hour,"                                                                                                       
          Insert "$7.25 an hour until December 31, 2009, and                                                                    
     thereafter not less than"                                                                                                  
                                                                                                                                
     Page 1, line 14:                                                                                                           
          Delete "January 1, 2010"                                                                                              
          Insert "July 24, 2009"                                                                                                
                                                                                                                                
9:10:30 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  WITHDREW  his   OBJECTION.  There  being  NO                                                                 
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
9:11:43 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman MOVED  to report CSSB 1 out  of Committee with                                                                 
individual  recommendations and  the accompanying  fiscal note.                                                                 
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Stedman  mentioned  the  zero fiscal  note  from  the                                                                 
Department of Labor (DOL).                                                                                                      
                                                                                                                                
CSSB  1   (FIN)  was  REPORTED   out  of  Committee   with  "no                                                                 
recommendation"  and with  a previously  published zero  fiscal                                                                 
note by the Department of Labor and Workforce Development.