Legislature(2023 - 2024)BELTZ 105 (TSBldg)
05/08/2024 01:30 PM Senate LABOR & COMMERCE
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Audio | Topic |
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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.