SENATE LABOR AND COMMERCE COMMITTEE February 14, 1995 1:30 p.m. MEMBERS PRESENT Senator Tim Kelly, Chairman Senator John Torgerson, Vice Chairman Senator Mike Miller Senator Judy Salo MEMBERS ABSENT Senator Jim Duncan COMMITTEE CALENDAR SENATE BILL NO. 78 "An Act related to the authority of certain beverage dispensary licensees to stock alcoholic beverages in guest rooms and prohibiting certain room rentals for the purpose of providing alcoholic beverages to a person under 21 years of age." SENATE BILL NO. 45 "An Act relating to settlement and payment of claims for minimum wage and overtime compensation claims and to liquidated damages and attorney fees for minimum wage and overtime compensation claims." Confirmation Hearings: Tom Cashen, Commissioner Designee, Department of Labor Willie Hensley, Commissioner Designee, Department of Commerce and Economic Development Board of Registration for Architects, Engineers, Land Surveyors: Pease, Mearig Athletic Commission: Asplund Board of Barbers and Hairdressers: Flint Board of Chiropractic Examiners: Conners-Allen, Phillips Board of Clinical Social Work Examiners: Henkelman, Patrick-Riley Board of Dental Examiners: Selle, Singleton Board of Dispensing Opticians: Hedges-Gajdos, Doerr Alaska Labor Relations Agency: Doyle, Elliott, Mahurin, Smart Board of Marine Pilots: Berto Board of Marital and Family Therapy: Christensen Board of Certified Direct-Entry Midwives: Flint Board of Nursing: Dean Board of Examiners in Optometry: Christiansen, Porter State Physical Therapy and Occupational Therapy Board: Tisler Board of Psychologist and Psychological Associate Examiners: Lynch, Kappes Board of Certified Real Estate Appraisers: Shideler, Crosson Alaska Public Utilities Commission: Cook Alaska Workers' Compensation Board: Stout, Koivisto, Wilson, Smith, Stemp, Lewis, Vollendorf PREVIOUS ACTION SB 45 - See Labor and Commerce minutes dated 2/2/95 and 2/9/95 SB 78 - No previous action WITNESS REGISTER Senator Bert Sharp Alaska State Capitol Juneau, Alaska 99801-1182 POSITION STATEMENT: Prime sponsor of SB 78 Willie Hensley Commissioner-designee Department of Commerce and Economic Development P.O. Box 110800 Juneau, Alaska 99811-0800 POSITION STATEMENT: Available to answer questions Tom Cashen Commissioner-designee Department of Labor P.O. Box 21149 Juneau, Alaska 99802-1149 POSITION STATEMENT: Available to answer questions Dennis Lavey President Alaska Hotel-Motel Association 321 E. 5th Anchorage, AK 99501 POSITION STATEMENT: Supports SB 78 Bill Dugdale Westmark Hotel 720 W. 5th Anchorage, AK 99501 POSITION STATEMENT: Supports SB 78 Mitch Gravo Alaska Hotel and Motel Association 170 Botanical Circle Anchorage, AK 99515 POSITION STATEMENT: Answered questions on SB 78 ACTION NARRATIVE Tape 95-5, Side A CHAIRMAN TIM KELLY called the Labor and Commerce Committee to order at 1:45 p.m. Senators Torgerson, Kelly, and Salo were present. The first order of business was confirmation hearings. SENATOR KELLY announced Mr. Hensley was present and, at the direction of the chair, would not be presenting a formal opening statement but would be available to answer questions. There were no questions for Mr. Hensley. SENATOR KELLY thanked Mr. Hensley for attending. SENATOR KELLY asked committee members if there were any questions for Tom Cashen, Commissioner designee of the Department of Labor. There being no questions for Mr. Cashen, the committee thanked him for attending. SENATOR KELLY informed committee members there was a list of the other nominees in front of them. He announced that Tim Cook, nominee for the Alaska Public Utilities Commission (APUC) was on- line via teleconference and prepared to answer questions. SENATOR KELLY asked the committee to stand at ease at 1:50 p.m. At 1:54 p.m., SENATOR KELLY called the meeting back to order and referred to the list of nominees given to committee members by Senate President Pearce. He read the list of names as follows: Board of Registration for Architects, Engineers, Land Surveyors: Maryann Pease and Lance Mearig; Athletic Commission: Kenneth Asplund; Board of Barbers and Hairdressers: Julie Flint; Board of Chiropractic Examiners: Patricia Conners, Virginia Phillips; Board of Clinical Social Work Examiners: James Henkelman, Colleen Patrick-Riley; Board of Dental Examiners: Lt. Cmdr. Benjamin Selle, James Singleton; Board of Dispensing Opticians: Tricia Gadjos, Pamela Doerr; Alaska Labor Relations Agency: Robert Doyle, James Elliot, Karen Mahurin, Bill Smart; Board of Marine Pilots: Robert Berto; Board of Marital Family Therapy: Maureen Christensen; Board of Certified Direct Entry Midwives: Sidney Flint; Board of Nursing: Louise Dean; Board of Examiners in Optometry: Randall Christiansen, Marilyn Porter; State Physical Therapy and Occupational Therapy Board: Bonnie Tisler; Board of Psychologists: Timmy Lynch, Bruno Kappes; Board of Certified Real Estate Appraisers: Richard Shideler, Susan Crosson; Alaska Public Utilities Commission: Tim Cook; Alaska Workers' Compensation Board: Richard Stout, Clifford Koivisto, Paula Wilson, Darryl Smith, Mark Stemp, Russell Lewis, and Patricia Vollendorf. SENATOR KELLY stated nominees' resumes were in front of committee members. He asked if there were any questions of nominees. SENATOR SALO recommended that the Committee not submit the names of the people who have not been recommended by the Governor. She asked the Committee to recommend only the names submitted by the Governor, rather than playing this "charade game." SENATOR KELLY stated the individuals were recommended by a Governor, and that the state government did not begin when Tony Knowles took office, nor will it end when he leaves. SENATOR SALO asked where the transmittal letter from the other Governor was. SENATOR KELLY explained the letters are on file with the Secretary of the Senate. SENATOR SALO asked who the letters are from. SENATOR KELLY replied they are from the Secretary of the Senate. The names have been duly submitted to the Labor and Commerce Committee for confirmation purposes. SENATOR MILLER moved that the Labor and Commerce Committee submit the names of nominees with individual recommendations to the Senate Secretary. SENATOR SALO objected. SENATORS MILLER, TORGERSON, and KELLY voted in favor, SENATOR SALO was opposed. SENATOR KELLY stated the names do move forward. SL&C - 2/14/95 SB 78 ALCOHOL SALES IN HOTEL ROOMS SENATOR BERT SHARP, prime sponsor of SB 78, gave the following testimony. Currently the Alcohol Beverage Control (ABC) Board is not permitted to allow alcoholic beverages to be stocked inside hotel or motel rooms. SB 78 seeks to authorize the ABC Board to allow beverage dispensary license holders the right to allow self- serve liquors inside hotel or motel rooms. Alcoholic beverages would be stocked in lockable refrigerators and placed in the rooms. Once the hotel or motel staff has determined a registering guest to be at least 21 years of age, a key to the lock unit can be issued, along with the room key. SB 78 was introduced at the request of the Alaska Hotel and Motel Association and the Alaska Cabaret Hotel Restaurant and Retailers Association. The 17th Alaska Legislature passed an identical bill (SB 183) which was vetoed by the Governor. He added the committee packet contains a zero fiscal note from the ABC Board, and several letters urging support. He noted the ABC Board maintains a neutral position on the legislation. SENATOR KELLY asked if SB 78 is identical to the version of SB 183 which was vetoed by the Governor. SENATOR SHARP replied it is, to the best of his knowledge. There were no further questions of the sponsor. Number 170 DENNIS LAVEY, President of the Alaska Hotel-Motel Association, testified in support of SB 78. He said refreshment centers, or mini-bars, are a way of life in the industry today. Customers are accustomed to these practices in 39 states and several states offer this practice as a local option. Most foreign countries also allow the use of mini-bars. People often prefer to stay inside of their hotel rooms in an unfamiliar city and to use room service. Seventy percent of the sales from the mini-bars are nonalcohol, however the sale of alcohol has a higher profit margin. BILL DUGDALE, General Manager of the Westmark Anchorage Hotel and Vice President of the Alaska Hotel-Motel Association, endorsed SB 78. He felt the bill would allow hotels and motels to provide a service expected by the travelling public. SENATOR KELLY asked Mitch Gravo if a business would already have to have a liquor license to participate in this practice. He replied affirmatively. SENATOR TORGERSON moved SB 78 out of committee with individual recommendations. SENATOR SALO objected. SENATORS MILLER, TORGERSON and KELLY voted in favor of the motion, SENATOR SALO voted against. SJUD - 2/14/95  SB 45 DAMAGES & ATTY FEES FOR UNPAID WAGES  SENATOR KELLY brought up SB 45 before the committee and noted the bill needs further legal work. He stated he does not support the bill in its existing form and felt the legislation would better be served by a Judiciary Committee review. SENATOR MILLER moved SB 45 out of committee with individual recommendations. There being no objections, the motion passed. SENATOR KELLY adjourned the meeting at 2:05 p.m.