Legislature(2023 - 2024)BELTZ 105 (TSBldg)
05/08/2024 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB88 | |
| HB203 | |
| HB226 | |
| HB189 | |
| HB233 | |
| HB146 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 88 | TELECONFERENCED | |
| += | HB 203 | TELECONFERENCED | |
| += | HB 226 | TELECONFERENCED | |
| *+ | HB 189 | TELECONFERENCED | |
| * | HB 233 | ||
| + | HB 146 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 189-SALE OF ALCOHOL BY PERSONS UNDER 21
2:36:58 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of CS FOR HOUSE BILL NO. 189(L&C) am "An Act
relating to the sale of alcohol; relating to the posting of
warning signs for alcoholic beverages; and providing for an
effective date."
2:37:35 PM
SARENA HACKENMILLER, Staff, Representative Jesse Sumner, Alaska
State Legislature, Juneau, Alaska, paraphrased the following
sponsor statement:
[Original punctuation provided.]
HB 189: Sale of Alcohol by Persons Under 21
Sponsor Statement
HB189 would aim to change existing Alaska statutes,
that would allow employees between the ages of 18 and
20 to sell, serve, deliver, and dispense alcohol
within restaurants and other specified license and
endorsement types under appropriate supervision. This
bill also modifies hours that a theater license holder
may serve alcohol and updates alcohol warning signs
content to include warnings against certain types of
cancer.
Alaska is one of just three states that require
employees to be over the age of 21 to sell, serve,
dispense, and deliver alcohol, while 39 states allow
servers to be 18-20. HB189 would create positive
change by tackling labor shortages and a high rate of
turnover in industries affected by this bill. Now, 18-
to 20-year-olds who wish to work in these industries
will have the opportunity to move into positions that
increase their earning potential. Expanding the
potential workforce strengthens businesses, allowing
them to operate at full capacity, leading to greater
economic contributions overall.
Many establishments already implement robust training
programs to ensure responsible alcohol service
practices. These measures, combined with on-site
supervision, could effectively ensure responsible
service by young adults within these industries.
With adequate training and supervision, employees aged
18-20 can responsibly and safely handle alcohol sales
and service in a controlled restaurant environment.
This change would benefit Alaska's economy, alleviate
labor shortages, and promote fairness within our
service industry.
2:38:39 PM
CHAIR BJORKMAN solicited a motion.
2:38:42 PM
SENATOR GRAY-JACKSON moved to adopt the Senate committee
substitute (SCS) for CSHB 189, work order 33-LS0697\U, as the
working document.
2:38:55 PM
CHAIR BJORKMAN objected for purposes of discussion.
2:39:05 PM
MS. HACKENMILLER provided a summary of changes for HB 189,
version U:
• Removal of Section 11 referred to the posting of warning
signs for alcoholic beverages, which had been added on the
House floor.
• Section eight would amend AS 04.16.049(d) which listed
license holders that would be allowing 18 to 20 year olds
to serve. Version U would add seven more: brewery
manufacturer, winery manufacturer, distillery manufacturer,
brewery retailer, winery retailer and distillery retailer
and limited brewed beverage and wine wholesalers.
• Section nine would add a beverage dispensary, or beverage
dispensary tourism licensee that has a large resort
endorsement [to license holders that would be allowing 18
to 20 year olds to serve]. She said Section nine would also
give some age requirements for under 16 and over 16,
ensuring that a legal guardian consents to [a 16 - 20 year-
old's] access to the premises.
2:40:31 PM
At ease
2:41:10 PM
SENATOR DUNBAR asked for clarification regarding the substantive
cancer warnings that had been added to HB 189 on the House
floor. He asked whether the cancer warnings were removed in
[version U].
2:41:25 PM
MS. HACKENMILLER replied that the cancer warning had been
removed in the [SCS].
2:41:34 PM
SENATOR DUNBAR asked whether there were technical changes [to HB
189] other than the removal of cancer warnings. He asked whether
there would be other changes necessary for HB 189 if the cancer
warning were restored.
2:42:07 PM
MS. HACKENMILLER said the most substantive technical change to
HB 189 would be a change to the title. She said the alcohol
warning signs would be included in the title [of HB 189].
2:42:24 PM
CHAIR BJORKMAN asked for clarification about whether there was a
relationship between a fiscal note for HB 189 and the [alcohol]
warning signs.
2:42:36 PM
MS. HACKENMILLER said there were conflicting messages. She had
been informed that the fiscal note had been removed but had not
been able to confirm that with the Alcohol and Marijuana Control
Office (AMCO).
2:43:08 PM
CHAIR BJORKMAN asked Ms. Wilson whether there was a relationship
between a fiscal note for HB 189 and the [alcohol] warning
signs.
2:43:24 PM
JOAN WILSON, Director, Alcohol and Marijuana Control Office,
Anchorage, Alaska, said there would be no fiscal note required
as long as only one sign was changed. She said there had been a
fiscal note attached to another bill which specified changes to
two signs and that would have required a fiscal note, but [the
cost for] one sign would not.
2:43:55 PM
CHAIR BJORKMAN sought to clarify that if the amendment [to HB
189] that had been made on the House floor [to require warning
signs] were reinstated, AMCO would be able to implement the
signage with its current resources.
2:44:29 PM
MS. WILSON said that was correct.
2:44:39 PM
CHAIR BJORKMAN proposed that HB 189 be considered by the
committee the next day after changes could be made to the [SCS].
2:45:16 PM
SENATOR DUNBAR clarified that the [SCS] for HB 189 had not been
adopted by the committee yet and he could not support adopting
it with the cancer warning signs amendment removed from the
bill.
2:46:29 PM
SENATOR GRAY-JACKSON asked Ms. Wilson for clarification. She
recalled that HB 189 originally included alcohol warning signs.
She said she understood that there would be no cost if there
were no warning signs [required by HB 189].
2:46:54 PM
MS. WILSON responded that there was a separate bill specific to
warning signs that carried a $25,000 fiscal note. She said that
[fiscal note] was necessary for that bill because it would have
changed two signs. She said HB 189 would only require an
amendment to one [warning] sign and that cost could be borne
within AMCO's internal budget. She acknowledged recent
discussion about whether a fiscal note would be attached [to HB
189] and assured the committee there would not be.
2:47:35 PM
SENATOR GRAY-JACKSON specified that the SCS for HB 189, version
U, no longer has the cancer warning, and asked if it would
require a fiscal note if the cancer warnings were in the bill.
2:47:52 PM
MS. WILSON responded that with or without the cancer warning,
there would be no fiscal note [for HB 189].
2:48:05 PM
At ease.
2:52:57 PM
CHAIR BJORKMAN reconvened the meeting and maintained his
objection to the adoption of SCS for HB 189, work order 33-
LS0697\U.
2:53:15 PM
CHAIR BJORKMAN opened [invited] testimony on HB 189.
2:53:30 PM
DAVID MCCARTHY, Owner/Co-brewer, 49th State Brewing, Northern
Hospitality Group, Healy, Alaska, said HB 189 would help to
build stronger community and that it was part of the solution to
the labor shortage in Alaska. He sought to debunk the idea that
HB 189 would be dangerous and said if it was dangerous, there
would be a national debate. Instead, the rest of the nation has
already adopted [HB 189] with the exception of three states. He
said [his business], was currently licensed, staff was trained
and no one under 21, guests nor staff, were permitted to consume
alcohol on the premises. He said Training for Alcohol
Professionals (TAP) was required for all employees of all ages
and HB 189 would strengthen the community by requiring alcohol
consumption education for young adults who have not been legally
allowed to consume alcohol, those between the ages of 18 and 20.
He noted [some] states have already allowed staff of 18 and over
[to serve alcohol] and there is currently debate about lowering
that age to 16. He suggested that Alaska could follow the course
already set by 47 states, learning from their experience.
2:55:38 PM
MR. MCCARTHY said the International Youth Foundation reported
that creating opportunities for youth and young adults in
hospitality [industry] should be something that all states focus
on. He said youth critically need life and employable skills to
prepare themselves to be motivated and confident decision-makers
who can overcome adversity and realize their potential. He said
that in developed economies we see 100% enrollment in secondary
school, yet nearly one in five of these students do not acquire
the minimum level of basic skills to function well in our
society.
2:56:23 PM
MR. MCCARTHY said hospitality is a noble career path and service
to others is important to build healthy and sustainable
communities. Restaurants create a sense of place in our
communities, and we've all learned a very tough lesson during
the years of COVID, when restaurants were forced to be closed.
He said passing HB 189 is part of the solution. He noted that
one in every three Americans receive their first jobs in
restaurants and food service industry and millions of those
people will go on to have rewarding lifelong careers. He said
passing HB 189 would allow hospitality to infuse in our young
adult's self-confidence, ability to manage emotion, personal
responsibility, respecting self and others, cooperating in
teamwork, creative thinking, decision making, and one of the
most important is conflict management.
2:57:17 PM
MR. MCCARTHY said [the hospitality] industry shatters the
diversity and inclusion numbers compared to all other
industries, employing more than 54 percent women. He said
40percent of those are non-white employees. The gender pay gap
for entry level employees is also six percent higher than the
national average in our industry. He said HD 189 would be good
for young adults between 18 and 20 because it would allow them
to meet new people and make new friends. He said they would
broaden their skill set. HB 189 would allow flexibility in
shifts, fun and social jobs, and would make more hours available
during holiday breaks, especially to those that are going to
school. He noted HB 189 would also allow increased earnings
based on receiving tips.
2:58:07 PM
MR. MCCARTHY emphasized that Alaska was one of only three states
in the nation that had not adopted these changes. He said it was
critical in [the hospitality] industry and for Alaska to adopt
HB 189 to build a brighter future for our communities and our
youth and our state. He said it is also important to note that
Alaska is one of only eight states that is not a tip credit
state. In most states, they allow people to be paid less than
minimum wage. HB 189 would allow young adults to be paid minimum
wage, plus tips [thereby] increasing wages, which increases
independence.
MR. MCCARTHY said, overall, allowing HB 189 to be approved would
not only help with immediate labor needs, it would impact our
communities through hospitality employment of young adults in
development of the future leaders that we desperately need.
2:59:24 PM
DIANE THOMPSON, President, Alaska Hospitality Retailers
Association, Anchorage, Alaska, said, he agreed with everything
in the previous testimony and said, if passed, HB 189 would be a
big win for Alaska restaurants, hotels, lodges, breweries, the
Alaska Railroad, convention centers, etc.; and a big win for 18-
to 20-year-old young adults by giving them a chance to earn a
decent wage. Right now, she said, in Alaska, when college kids
come home, all we can offer them is the job of bussing or
hosting. The pay is okay, but it's not like it would be if they
were able to serve, especially serve alcohol. With summer and
tourist season approaching, really fast, she respectfully asked
the committee to vote yes on HB 189.
3:01:00 PM
SARAH OATES, President, Alaska Cabaret Hotel Restaurant and
Retailers Association, (Alaska CHARR), Anchorage, Alaska, said
she served as president and CEO of Alaska CHARR, since 2018. She
said Alaska CHARR was based out of Anchorage and had over 700
members across Alaska communities and represented over 2,000
hospitality establishments employing over 30,000 workers around
the state. With the pandemic past its peak, Alaska's hospitality
industry continues to face significant ongoing challenges to
business operations, the greatest of which being ongoing and
increasing labor shortages. She noted that Alaska was one of
only three states, along with Utah and Nevada, that required a
person to be 21 years of age or older to serve alcohol. She said
employers struggle to promote or retain quality employees who
are 18 to 20 years of age because they are prohibited from
serving alcohol or supervising other employees who serve or sell
alcohol. She said Alaska employers are not competitive in this
space, and the hospitality industry is experiencing an out-
migration of young workers. She said that when she was in her
late teens and early twenties, she attended college while
serving and bartending in the Pacific Northwest. During the
summer break, she stayed in the Pacific Northwest rather than
returning home to Alaska, because she could make significantly
more money as a server or manager, positions that she was
prohibited by law from working in in her home state. She
reported that, in multiple years, she brought home six figures
by serving and bartending as a young adult outside Alaska. She
said, if she had returned to Alaska during those years, she
would have been limited under current statute, to positions that
paid 25 to 30 percent at the time, what she was able to make
outside.
3:02:36 PM
MS. OATES said many young people are making the same choice in
today's labor market and that is having a significant impact on
Alask hospitality business. HB 189 would help hundreds of
Alaskan-owned establishments around the state that collectively
represent Alaska's largest private employer and second largest
industry. She said, as the voice of Alaska's hospitality
industry, she respectfully requested the committee to support
thousands of workers and businesses around the state by voting
in support of HB 189.
3:03:33 PM
CODIE COSTELLO, President and Chief Operating Officer, Alaska
Center for Performing Arts (ACPA), Anchorage, Alaska, said , in
addition to her role at ACPA, she was also the General Manager
of Broadway Alaska. She said the ACPA had been operating for
over 35 years and partnered with presenters and producers from
Alaska and around the world to provide world class arts
experiences to the community, including those from eight
resident companies. She said this season [2023/2024], the ACPA
launched Broadway Alaska, a multiyear partnership with the
Nederlander Organization. She spoke about the success of
Broadway Alaska's first season and the enthusiastic attendance
by people from across the state and all over the country. She
noted that many other events were hosted at the performing arts
center each year and PAC understood the importance of its role
as an economic engine for downtown Anchorage and Alaska. She
described the upcoming 2024/2025 season at the ACPA and said HB
189 would allow them to continue this work, expanding ACPA's
local business operations and revenue while enhancing the
theater experience for their patrons.
3:04:57 PM
MS. COSTELLO said under ACPA's current alcohol license, workers
were limited. Patrons could only consume alcohol in the upper-
level lobbies and within limited time frames, and there was no
alcohol allowed in theater. She said HB 189 would provide an
updated framework for the rules of ACPA's license, giving them
flexibility to finally be able to respond to presenters',
promoters' and patrons' requests for evolving the experience at
the ACPA and keeping [up] with industry trends. In this spirit,
ACPA recommends and requests that this license change to
accommodate our clients and patrons and ensure their experience
at the theater is relaxed and responsible, and our venue and
services reflect the type of experience our patrons seek and
that ACPA can support and promote. She explained that,
currently, if a patron purchased a drink during a 15 to 20
minute intermission, they would have to procure a drink and be
back in their seats within minutes. The system was rushed
unnecessarily and led to a harried atmosphere and product waste.
She said ACPA had an existing and robust operations plan for all
events at the center with a well-trained event staff, staffed
and contracted security, and contracted concessionaires. She
said and this would include great support from the expansion of
the workforce opportunities that everyone testifying today has
been talking about. She said ACPA is poised to scale up and
adjust their operations as needed to ensure their continued and
successful operations with the passing of HB 189 and the removal
of existing restrictions in their current license type.
3:06:24 PM
MS. COSTELLO concluded that HB 189 would increase ACPA's
economic impact on and for downtown Anchorage and Alaska. She
said HB 189 would drive increased operating revenue which would
help them reinvest in facility and personnel. It would keep the
theater license in line with national standards and increase the
quality of patron experience. She said it would be a win for
local businesses, the arts industry and the lively downtown
experience that we all help to curate in Anchorage. She thanked
Representative Sumner and his staff, Clark and Serena, for their
work on the bill and their contribution to the vibrancy and
economy of downtown Anchorage.
3:07:36 PM
CHAIR BJORKMAN asked Director Wilson whether a separate
effective date [amendment to HB 189] to accommodate the warning
signs would be helpful.
3:08:03 PM
MS. WILSON replied that an effective date of July 1, 2024, would
be helpful and she acknowledged that HB 189 overall would carry
an immediate effective date.
3:08:36 PM
MS. HACKENMILLER made closing comments on HB 189. She shared
about her late father's work for CHARR and said he would be
happy to see Alaska aligning with other states in allowing young
folks to work in the service industry as they deserve, and to
see labor shortages possibly get worked on.
[Objection to the adoption SCS for CSHB 189 was maintained.]
3:09:23 PM
CHAIR BJORKMAN held HB 189 in committee.