02/27/2002 01:45 PM House FIN

HOUSE BILL NO. 56                                                                                                             
                                                                                                                                
     An Act relating to minimum wages.                                                                                          
                                                                                                                                
Representative Hudson MOVED work  draft #22-LS0342\L, Craver,                                                                   
2/21/02, as  the version before  the Committee.   There being                                                                   
NO OBJECTION, it was adopted.                                                                                                   
                                                                                                                                
CHIP WAGONER,  ALASKA CATHOLIC CONFERENCE,  JUNEAU, testified                                                                   
in support of the minimum wage bill as proposed.                                                                                
                                                                                                                                
Mr. Wagoner  advised that the  Alaska Catholic  Conference at                                                                   
its  meeting  on  September  21,  2001,  adopted  a  petition                                                                   
supporting an increase in Alaska's minimum wage.                                                                                
                                                                                                                                
The Catholic Church's support  for a minimum wage is not new.                                                                   
The Church advocated for the establishment  of a minimum wage                                                                   
law  as early  as  1919, nearly  two  decades  prior to  its'                                                                   
passage.                                                                                                                        
                                                                                                                                
Mr.  Wagoner stated  that  minimum wages  are  paid for  work                                                                   
done.  Work is more than just a job.  Work is a way to:                                                                         
                                                                                                                                
     ·    Participate in God's creation;                                                                                        
     ·    Contribute to the common good;                                                                                        
     ·    Promote human dignity;                                                                                                
     ·    For people to meet their material needs,                                                                              
          commitments and obligations.                                                                                          
                                                                                                                                
The Church's teachings promote  the concept of a living wage,                                                                   
a wage  adequate for  workers to  provide for themselves  and                                                                   
their families in dignity.                                                                                                      
                                                                                                                                
Mr.  Wagoner pointed  out  that the  minimum  wage amount  of                                                                   
$7.15 is not  a living wage.   If a person worked  40 hours a                                                                   
week,  52 weeks  a year  at $7.15,  they  would earn  $14,872                                                                   
dollars, which  is below the  poverty threshold for  a family                                                                   
of two.   Although, he  pointed out that,  as an  increase in                                                                   
the minimum  wage is not a living  wage, it is a  step toward                                                                   
the right direction.                                                                                                            
                                                                                                                                
Mr. Wagoner concluded  that an incentive in  the minimum wage                                                                   
would disproportionately  benefit  women, minorities  and the                                                                   
nation's poor.                                                                                                                  
                                                                                                                                
Representative Davies  asked if the committee  substitute was                                                                   
identical to the initiative.                                                                                                    
                                                                                                                                
LINDA  SYLVESTER, STAFF,  REPRESENTATIVE  PETE KOTT,  replied                                                                   
that the petition  initiative was exactly contained  in HB 56                                                                   
in its  current form.   It  is the intention  of the  sponsor                                                                   
that HB 56 is identical to the  initiative petition.  Once it                                                                   
is  passed, it  would be  sufficient to  void the  initiative                                                                   
petition.                                                                                                                       
                                                                                                                                
Representative Lancaster asked  if that would be an automatic                                                                   
procedure.                                                                                                                      
                                                                                                                                
Ms. Sylvester explained  that once it is passed,  it would go                                                                   
to the  Lt. Governor  for review.   In  conjunction with  the                                                                   
Attorney General, the decision would be made.                                                                                   
                                                                                                                                
Representative Foster  MOVED to report CS HB 56  (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Vice-Chair Bunde OBJECTED.  He  stated that he preferred that                                                                   
the decision  go through  the public  process weighing  in on                                                                   
the initiative process.                                                                                                         
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Foster, Harris, Hudson, Lancaster, Moses,                                                                        
               Whitaker, Williams                                                                                               
OPPOSED:       Croft, Davies, Bunde                                                                                             
                                                                                                                                
Co-Chair Mulder was not present for the vote.                                                                                   
                                                                                                                                
The MOTION PASSED (7-3).                                                                                                        
                                                                                                                                
CS  HB   56  (FIN)  was   reported  out  of   Committee  with                                                                   
"individual recommendations"  and with a zero  fiscal note #1                                                                   
by  Department  of  Administration  and  fiscal  note  #2  by                                                                   
Department of Health & Social Services.