05/11/2022 03:15 PM House LABOR & COMMERCE

            SB 185-ELIMINATE MINIMUM WAGE EXEMPTION                                                                         
                                                                                                                                
3:30:00 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced  that the next order  of business would                                                               
be  CS  FOR  SENATE  BILL  NO.  185(L&C),  "An  Act  relating  to                                                               
exemptions from minimum wage."                                                                                                  
                                                                                                                                
CO-CHAIR FIELDS specified the intent  of the hearing was to bring                                                               
the legislation back before the  committee because, after lengthy                                                               
consultation  with stakeholders  and Legislative  Legal Services,                                                               
language  has been  written  that will  ensure  Girl Scouts,  Boy                                                               
Scouts, and  Campfire can continue  to operate.  He  related that                                                               
the  [Department   of  Labor   and  Workforce   Development]  has                                                               
promulgated   temporary  or   emergency  regulations   so  [these                                                               
nonprofits]  can continue  to operate  this summer  regardless of                                                               
whether  a bill  is passed,  but this  legislation would  provide                                                               
them  some certainty.   He  said the  committee needs  to rescind                                                               
action  on SB  185,  then adopt  a  new HCS,  and  then pass  the                                                               
amended legislation so it can be heard on the House floor.                                                                      
                                                                                                                                
3:30:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NELSON offered his  understanding that this is for                                                               
all nonprofits,  not just Girl  Scouts, Boy Scouts,  and Campfire                                                               
specifically.                                                                                                                   
                                                                                                                                
CO-CHAIR FIELDS replied yes, this  exemption would fall under the                                                               
"learner"  category in  statute.   It  would  codify an  existing                                                               
practice so that  employees in a residential  camp receiving room                                                               
and board can  be paid sub-minimum wage, he  explained, and there                                                               
are some thresholds depending on the  number of hours worked.  It                                                               
does not create a new exemption,  he continued, it codifies a new                                                               
exemption  following  the  Department   of  Labor  and  Workforce                                                               
Development's   re-interpretation   of   the   existing   learner                                                               
exemption.   He stated  that this language  has been  endorsed by                                                               
the Girl  Scouts, Boy Scouts,  Campfire, and the  Alaska AFL-CIO.                                                               
It would apply  to other camps, he said, but  it was important to                                                               
work with those camps that had identified this problem.                                                                         
                                                                                                                                
3:31:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ  specified  that  this would  only  apply  to                                                               
nonprofit residential  camps that  operate for  12 weeks  or less                                                               
and which  offer room and board  in addition to the  weekly wage.                                                               
It is a very narrow  exemption, she continued, designed to ensure                                                               
that nonprofit  organizations will  be able to  continue offering                                                               
residential   summer  camps   within  their   existing  financial                                                               
frameworks.  It does not go beyond that, she added.                                                                             
                                                                                                                                
CO-CHAIR FIELDS clarified  it would be more accurate  to say that                                                               
the Alaska AFL-CIO  does not object to this  language rather than                                                               
to say  that the Alaska AFL-CIO  endorses it.  He  said he agrees                                                               
it  is important  to  have tight  language so  that  this is  not                                                               
abused.   His view, he  opined, is that  it needs to  be language                                                               
that can  be passed on the  floor; if it gets  broadened it would                                                               
endanger the underlying bill.                                                                                                   
                                                                                                                                
3:32:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY asked  whether  anything  has been  heard                                                               
from nonprofits that offer winter camps.                                                                                        
                                                                                                                                
CO-CHAIR  SPOHNHOLZ responded  that  the  residential camps  that                                                               
were  worked with  operate residential  camps  and don't  operate                                                               
winter  camps for  the  most  part.   While  there are  sometimes                                                               
spring  break  camps,  she  continued,  they  are  not  typically                                                               
residential camps,  and this only  applies to  residential camps.                                                               
The language is designed to  apply to that very narrow exception,                                                               
she added.                                                                                                                      
                                                                                                                                
3:33:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  moved to rescind  the committee's  action [on                                                               
5/4/22]  in moving  HCS CSSB  185(L&C) out  of committee.   There                                                               
being no objection, it was so ordered.                                                                                          
                                                                                                                                
CO-CHAIR  FIELDS  explained  that  now   the  new  HCS  with  the                                                               
consensus  language,  [Version   32-LS1443\E,  Klein,  5/11/22)],                                                               
would be brought before the committee.                                                                                          
                                                                                                                                
3:34:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  moved to adopt  the proposed  House committee                                                               
substitute (HCS)  for CSSB 185(L&C), Version  32-LS1443\E, Klein,                                                               
5/11/22.   There  being no  objection, Version  E was  before the                                                               
committee.                                                                                                                      
                                                                                                                                
3:34:55 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:34 p.m. to 3:35 p.m.                                                                       
                                                                                                                                
3:35:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ moved  to report  HCS CSSB  185(L&C), Version                                                               
32-LS1443\E,  Klein, 5/11/22,  out of  committee with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection,  HCS CSSB  185(L&C) was reported  out of  the House                                                               
Labor and Commerce Standing Committee.