Legislature(2003 - 2004)
04/15/2004 01:51 PM House FIN
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= bill was previously heard/scheduled
HOUSE BILL NO. 367
An Act relating to the licensing and regulation of sex-
oriented businesses and sex-oriented business
entertainers; relating to protection of the safety and
health of and to education of young persons who perform
in adult entertainment establishments; and providing
for an effective date.
REPRESENTATIVE LESIL MCGUIRE, SPONSOR, noted that the
statewide Parent-Teacher-Student Association (PTSA) passed a
resolution asking the Legislature to pass a law to protect
under 21-year-old employees and minors from some of the ill
effects caused by strip clubs, massage parlors and other
nude entertainment businesses. Accordingly, they worked to
help craft HB 367. Among the findings in the statewide PTSA
resolution, from a review of studies and court findings, is
a showing that the operation of sexually oriented businesses
(SOB) leads to higher rates of crime, including sexual
assaults, prostitution, drug sales and drug use.
Representative McGuire stated that the primary goals of HB
367 are to permit the legal operation of these businesses
while protecting young Alaskans who work at them, to protect
minors, and to protect the public from operations by those
adult establishments that do not follow the law.
Representative McGuire highlighted the provisions of the
bill, which would protect the public and young adults in the
following ways:
· Prohibits nude entertainment from sharing a common
entrance, restroom or hallway with businesses or
residences used by minors.
· Prohibits the use of closed private booths where
illegal sexual activities may occur.
· Prohibits the operation of sexually oriented
businesses by those with felony records, or records
involving sexually related, drug-related, or
violence-related crimes.
· Prohibits the employment of nude or semi nude
entertainers under the age of 19.
· Requires entertainers to obtain a license, and
prove they have attended a State approved course
teaching the entertainer how to protect her/himself
from sexual assault; and a course teaching
entertainers of wage and working condition
violations that occur in that area of business.
· Requires entertainers under 21 years old to show
they have attended a State-approved counseling
session that is aimed at letting young adults know
of career and educational alternatives, financial
aid and vocational training available to them as
viable options to entering or remaining in a career
in adult entertainment. While it is likely
unconstitutional to ban all 21 year olds from these
jobs, it is important that young adults at least
know about other life options. Many young adults
who enter into these careers come from backgrounds
where those options are not generally discussed.
· Entertainers under age 21 shall also be required to
show they have taken a state-approved course on
sexually transmitted diseases.
· Businesses and entertainers are required to obtain
licenses to show these requirements have been
followed. The State, as it does in other areas,
will set the license fees at a level to cover the
State's costs of administration and enforcement.
· Communities shall be apprised of adult business
license applications through reasonable public
notice rules.
· Allows suspension of an adult entertainment
business license if provisions of the law are
knowingly violated.
Representative McGuire pointed out the faxed testimony from
Shawn Ruggley, who spent many years dancing in teen strip
clubs. Ms. Ruggley mentions that the selling and buying of
drugs is intermingled within that scene; it is almost as if
the two were one in the same. (Copy on File).
Representative Hawker MOVED to ADOPT Amendment #1, #23-
LS1394\X.2, Craver, 4/15/04. (Copy on File). Co-Chair
Williams OBJECTED for the purpose of discussion.
Representative McGuire explained that the amendment was a
collection of all the changes made to the bill in an effort
to garner support. It eliminates references to age
restrictions. Some of the changes come as a reflection on
Supreme Court rulings that would cause legal expense and be
challenged. She pointed out that most of the changes were
to the age requirement.
Representative Hawker MOVED to add a "friendly" amendment to
Amendment #1, Page 11, Line 6, deleting "public" and
inserting "pubic". There being NO OBJECTION, the amendment
was amended.
TAPE HFC 04 - 84, Side B
OFFICER PABLO PAIZ, (TESTIFIED VIA TELECONFERENCE),
ANCHORAGE POLICE DEPARTMENT, ANCHORAGE, spoke in favor of
the legislation. He was disappointed with the language of
the amendment as he thought it would "water down" the bill.
He commented that he has witnessed the plight of many young
dancers who are victims to their employment. In addition to
the employing, many employers house them. Having the
businesses being licensed and regulated would keep them on
the up and up.
DON HUDSON, (TESTIFIED VIA TELECONFERENCE), PHYSICIAN,
ALASKA REGIONAL HOSPITAL, ANCHORAGE, voiced his support for
the bill, voicing concern that it had been watered down. He
commented on the dramatic increase of sexually transmitted
diseases that many of the young girls are treated for at
local hospitals. These girls are frequently pregnant,
having multiple complications. He assessed that this is a
sad commentary on the life of these young people,
reiterating his support for the bill.
CAROL HARTMAN, (TESTIFIED VIA TELECONFERENCE), CO-OWNER,
FANTASIES, ANCHORAGE, spoke strongly against the
legislation. She stated that she owns a business in the
industry and thought that the bill should not have been
brought forward. The industry was excluded from the
discussions that formulated the bill. She believed that
these issues should have been addressed at a local level.
There are already municipal codes which grandfather in this
industry including specific requirements. She mentioned
that they would not be against regulating the industry if it
was handled fairly, making a better business world for
everyone. The concern is with over-regulation.
Ms. Hartman added that many of the alleged referenced abuses
took place years ago when current laws were not in place.
She added that the situation in Anchorage is totally
different than those in the large cities in the Lower forty-
eight states and that mishandling in the Alaskan businesses
is unproven. She emphasized that there are no secondary
effects from this business.
Ms. Hartman disliked being called a "sexually oriented
business". She stressed that there is no "sex" in the
industry. She asked for specific information that could be
substantiated. She referred to the reference regarding the
high rate of sexually transmitted diseases, pointing out
that the North Slope area has the highest amount of
Chlamydia in the nation. She asked if all those girls were
dancers. She claimed that the legislation was harsh and
asked that it be reconsidered.
KARA NYQUIST, (TESTIFIED VIA TELECONFERENCE), ATTORNEY,
DIRECTOR OF COVENANT HOUSE, ANCHORAGE, spoke in strong
support of HB 367. She noted that she had worked with
Representatives McGuire and Gara on the legislation. She
offered a brief legal description of her experience on the
issue. The Alaska Supreme Court and the U. S. Supreme Court
have recognized that dancing is constitutionally protected,
however, both courts recognize that those judgment
restrictions and that local governments have the right and
duty to regulate sexually oriented businesses. The Supreme
Court uses the term SOB when describing those businesses.
She mentioned the secondary effects of this type of local
business with increased crime including drug traffic,
prostitution and sexual assault and the increase of
spreading sexually transmitted diseases and wage and hour
violations.
Several of the minors interviewed have spoken about the
things that occurred to them when working in clubs in
Anchorage. Some of the things reported were:
· Required to pay $50 dollars a night to work
at the clubs and if they did not make that
amount they then owed the house;
· Encouraged to do lap dances with no clothing
on;
· Encouraged to engage in prostitution;
· Forced to work in unclean conditions; and
· Concluded that 16-year-old girls are engaging
in sex.
Ms. Nyquist pointed out that these things are happening in
Anchorage. The club owners in the State should not employ
anyone under the age of 21. She urged that the bill be
passed from Committee.
TERRY DITTMAN, (TESTIFIED VIA TELECONFERENCE), PARENT-
TEACHER-STUDENT ASSOCIATION (PTSA), ANCHORAGE, read the
testimony from Nancy Fair, Parent-Teacher-Student
Association, Service High School, Anchorage. (Copy on
File).
She noted that they had spent over a year researching the
impacts of the SOB's, finding no benefits, only negative
impacts from that type of business to the children of the
State. She claimed that business licensing as proposed in
HB 367 would be an important step in protecting the teens.
It would help insure that underage teens are not involved
and it would insure that the club owners are not criminals.
The PTA strongly supports raising the minimum age for both
customers and strippers to 21 years. Raising the minimum
age would not be inconsistent with supporting the minimum
voting and military age requirements.
Ms. Dittman added that participation in SOB's is frequently
a pathway to drug and alcohol addiction and prostitution.
Use of drugs and alcohol contributes to an unsafe
environment for teens. Many of the customers at the non-
liquor strip clubs arrive intoxicated. Strip clubs without
a liquor licenses have no designated closing times, so when
the bars close a "rush" of intoxicated customers appear in
the clubs and interact with the under-aged clients.
Ms. Dittman added other benefits of the bill would be
statewide jurisdiction, so that all communities are
protected. She strongly encouraged review of the
legislation, as the industry is detrimental to individuals
and to the communities.
ANDREE MCLEOD, (TESTIFIED VIA TELECONFERENCE), ANCHORAGE,
testified in opposition to the legislation because of the
manner in which it was drafted. She stated that she is not
in favor of allowing high school students to participate in
stripping, but maintained that the process did not include
the industry members when formulating the bill. The
industry has offered to address the issues of employing high
school students. Ms. McLeod emphasized that this is a local
issue and observed that men and women over 18 years of age
have the right to make their own decisions.
Ms. McLeod recommended that the operations should be
regulated around the State but that the young people in the
18-21 year old range are able to make their own decisions
without the interference of State government.
DIANA L. STRAUB, (TESTIFIED VIA TELECONFERENCE), PARENT-
TEACHER ASSOCIATION, ASSEMBLY MEMBER, WASILLA, voiced strong
support for the bill. Through the licensing process, the
public will have the ability to comment. The public should
have the right to comment during the renewal process and the
community would be able to participate in the licensing
process. It is valuable that the public can revoke these
licenses.
Ms. Straub recommended that the licensing process mirror the
liquor licensing process and be regularly checked for
compliance. Requests for application could be approved or
rejected by the State for incompliance. Ms. Straub
recommended that parole be added on Page 4, Line 7 & 8 and
on Page 5, Line 10, also inserting cities and boroughs.
REGINA MANTEUFEL, (TESTIFIED VIA TELECONFERENCE), FORMER
STRIPPER, ANCHORAGE, voiced strong support for the
legislation. She urged that the patrons be 21 years old.
She noted that she first started dancing for the military.
Those clients tend to be very rude and often would grab the
dancers. She pointed out that many dancers have stage names
to protect themselves from being followed.
Ms. Manteufel discussed labor laws that a person cannot be
paid a shift rate to work. Dancers cannot be paid their
stage tips to work. Any stage tip is considered a tip and
it is illegal that the owners of the club use that to
suffice minimum wage. She claimed that is done everywhere
and that it is illegal to have a shift-pay.
Ms. Manteufel recommended that the Department of Labor &
Workforce Development visit the clubs twice a year and go
over the labor laws with the dancers, including information
on making a wage claim.
Ms. Manteufel did not support young girls table dancing
naked. She stressed that there should be no naked table
dancing at any age. The original bill contains one-hour
assertiveness training, which she thought would be cost
effective for all clubs.
Ms. Manteufel referenced the domestic violence records for
the State of Alaska, pointing out that the men abusing
between the ages 18-21 years old are usually in the
military.
TAPE HFC 04 - 85, Side A
Ms. Manteufel concluded her testimony and reiterated her
support for the bill.
KATHY HARTMAN, (TESTIFIED VIA TELECONFERENCE), CO-OWNERS,
FANTASIES, ANCHORAGE, spoke against the passage of the bill.
She referenced the packet in member's files. (Copy on
File). She noted that her business is in the Union and is
audited every year for workmen's compensation. She stressed
that much of the testimony is off base. Much of the
information is being provided from very old surveys. She
claimed that the "deep" research performed by Representative
McGuire was not true. She responded to comments made in
previous testimony.
Ms. Hartman pointed out that there are only six of this type
business in the Northern Alaskan area. The Municipality of
Anchorage and Matsu have laws on the books regulating them.
Currently, these businesses are required to do all the
reporting that other businesses are required to provide.
She strongly urged that the bill not be moved from
Committee.
Representative Hawker MOVED a conceptual to Amendment #1,
Page 2, Line 15, inserting language:
(4) Information on the State's wage and labor
laws as it pertains to the entertainer's
employment.
There being NO OBJECTION, the conceptual amendment was
adopted.
Vice Chair Meyer inquired how performances in places like
the Performing Arts Center and out-door theatres that from
time to time offer presentations where clothing is removed,
would be handled.
Representative McGuire responded that the sponsor's were
careful in drafting the legislation that those situations
were not included. There is a definition on Page 10,
outlining an adult oriented business and operating for
compensation. She added that sexually oriented business is
a legally tested term words used throughout the Supreme
Court documentation.
Co-Chair Harris MOVED to report CS HB 367 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 367 (FIN) was reported out of Committee with "no
recommendation" and with a new fiscal note by the Department
of Community & Economic Development, a new zero note by the
Department of Public Safety and zero note #2 by the
Department of Labor & Workforce Development.
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