Approved: 3-14-07                 

Date

MINUTES OF THE SENATE COMMERCE COMMITTEE


The meeting was called to order by Chairperson Karin Brownlee at 8:35 A.M. on February 12, 2007 in Room 123-S of the Capitol.


All members were present except:

Jean Schodorf- excused


Committee staff present:

Amy Deckard, Kansas Legislative Research Department

Kathie Sparks, Kansas Legislative Research Department

Norm Furse, Revisor of Statutes

Jackie Lunn, Committee Assistant


Conferees appearing before the committee:

Ron Hein, Kansas Restaurant and Hospitality Association

Jeff Glendening, KCCI

Carla James, Kansas Action Network

Andy Sanchez, Kansas AFL/CIO


Others attending:

See attached list.


SB 71-Repealing the minimum wage law


Chairperson Brownlee introduced Kathie Sparks, Legislative Research, to explain SB 71. Ms. Sparks presented written copy of “Kansas Labor Market Information” containing information on labor statistics for the state. (Attachment 1) Ms. Sparks explained the bill was repealing the minimum wage which is combined with the maximum hours law.


Chairperson Brownlee opened the hearing on SB 71 and introduced Ron Hein representing the Kansas Restaurant and Hospitality Association to give his testimony as a proponent of SB 71. Mr. Hein presented written testimony. (Attachment 2) Mr. Hein explained the impact of the minimum wage for restaurant, lodging and the hospitality industry and stated employees for this industry also receive tips. In closing, Mr. Hein stated the Restaurant and Hospitality Association is in support of SB 71 suggesting the bill be amended to prohibit local minimum or living wage ordinances.


A lengthy discussion followed with Mr. Hein and the Committee regarding the existing minimum wage in Kansas and tip reporting.


Chairperson Bronwlee introduced Jeff Glendening, KCCI, to give his testimony as a proponent of SB 71.

Mr. Glendening presented written copy. (Attachment 3) Mr. Glendening stated the Kansas Chamber believes in a market-driven approach to determining wages in Kansas. The free market has proven time and again the strongest, most stable and fair method of determining wages. A minimum wage set by government is not needed and should be repealed. He urged the Committee to vote in favor of the bill.


Questions followed for Mr. Glendening from the Committee.


Chairperson Brownlee introduced Carla James representing the Kansas Action Network to give her testimony as an opponent of SB 71. Ms. James presented written testimony. (Attachment 4) Ms. James stated the bill removes basic protection for workers. Only five (5) states in the United States do not have a minimum wage. These states are found at the bottom of state rankings for public education, per capita income, public health, and many other indicators of the quality of life their citizens experience. She urged the Committee not to vote in favor of the bill.


Chairperson Brownlee introduced Andy Sanchez representing the AFL/CIO to give his testimony as an opponent of SB 71. Mr. Sanchez presented written testimony. (Attachment 5) Mr. Sanchez stated that

SB 71 would abolish the state minimum wage rate which is already a very low $2.65 an hour. Since Kansas first adopted a state minimum wage over 29 years ago, it has only seen an increase of $1.05 in that period. All of the surrounding states are at least a $5.15 minimum wage. In closing, Mr. Sanchez urged the Committee not to take any action on SB 71.


Questions followed.


Chairperson Brownlee closed the hearing on SB 71 and adjourned the meeting at 9:30 a.m. with the next scheduled meeting tomorrow, February 13th at 8:00 a.m. in room 123 S.