ARHA NOW Vol. 5 Issue #2

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THE OFFICIAL MAGAZINE OF THE ALABAMA RESTAURANT & HOSPITALITY ALLIANCE

3 Things You Need to Know About

MUSIC IN THE RESTAURANT INDUSTRY CARLE PLACE, NY PERMIT NO 35

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VOLUME 5 ISSUE #2

VOLUME 5 ISSUE #1

POWER TO THE

ELECTRIC KITCHEN

Š 2016 Alabama Power Company

With reduced cleanup time, lower maintenance cost, and longer equipment life, electric cooking gives you a more efficient and cooler kitchen. When you add in faster preheating, faster recovery and less product shrinkage, you’ll see how electricity gives you the power to save while giving your menu the preparation it deserves. Call 1.888.430.5787 to learn more about the benefits of electric cooking.

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INSIDE. STARS OF THE INDUSTRY AWARDS: NOMINATION DEADLINE AUG. 8 FROM THE PRESIDENT

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2016 STARS OF THE INDUSTRY AWARDS

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THE OFFICIAL MAGAZINE OF THE ALABAMA RESTAURANT & HOSPITALITY ALLIANCE

2016 GRAND PINEAPPLE GOLF CHALLENGE

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phone: 334.244.1320

MERCHANTS FOODSERVICE GRAND OPENING

fax: 334.244.9800

FOR CLANTON EXPANSION

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3 S. Jackson Street Montgomery, AL 36104

WHAT’S GOING ON

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2016 PROSTART EDUCATOR OF EXCELLENCE

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www.arhaonline.com

3 THINGS YOU NEED TO KNOW ABOUT MUSIC IN THE RESTAURANT INDUSTRY

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President & CEO

WENONAH HIGH SCHOOL PROSTART DAY

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ALISON INGLE

CITY OF BIRMINGHAM KIDS & JOBS PROGRAM

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LEGISLATIVE REPORT

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ARHA’S 1ST ANNUAL LEGISLATIVE DAY RECAP

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NRA & AH&LA WASHINGTON TRIP RECAP

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MINDY HANAN

Director of Communications

SHEA PERKINS Director of Member Relations

SUSAN STARR Director of Education

ALABAMA TOURISM PARTNERSHIP 2016 LEGISLATIVE BASH

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WELCOME NEW MEMBERS

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from the

PRESIDENT

T MINDY HANAN President & CEO, ARHA

he Alabama Restaurant and Hospitality Alliance has been taking care of business on your behalf. We sucessfully pre-empted minimum wage, scheduling and other benefit mandates. I would like to express my personal gratitude to our lobbyist, Miller Development Group. Jeff and Deborah Miller have worked tirelessly to further our legislative agenda. The National Restaurant Association was very instrumental in our success as well.

The NRA provided monetary, legal and communication resources without which we could not have been succesful.

The ARHA is achieving great increases in membership and engagement. We need to continue to increase our advocacy at local, state and federal levels. There will be many other issues that affect your business as we progress through the year. The Department of Labor’s new overtime rules will go into effect on December 1 this year and the EEOC recently announced their intent to increase by nearly 2000% the amount of data they will require EEO-1 reporters to collect. The ARHA will be here to help educate and reduce the impact these regulations will have on our members.

We are excited about the momentum that the Alliance is creating. We had a large number of people participate in the 2016 Legislative Day in Montgomery. It was a wonderful opportunity to educate the legislature, media and

Alabamians about the importance of our industry. Also in the past three months, we have had three different groups go to visit our senators and congressmen in Washintgon DC. And, we have had three requests from congressmen to meet with our members in their home districts.

Our Stars of the Industry Dinner and Grand Pineapple Golf Challenge will take place September 26-27 in Montgomery. I hope you will take time to nominate a worthy employee from your organization for recognition through this wonderful program. Please make plans to join us for the dinner and stay to enjoy a day of fellowship with your industry colleagues as we raise money for the ARHA’s Foundation. The Foundation provides scholarships to worthy students in our two and four-year colleges that are pursuing careers in the restaurant and hospitality field.

Thank you for your efforts on behalf of the industry and your active participation in the Alabama Restaurant and Hospitality Alliance.

Your involvement and contributions to the industry are critical to our success.

Please let us know how we can be of service to you.

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Save the Date Monday, Sept. 26, 2016 Renaissance Montgomery Hotel & Spa at the Convention Center Visit ARHAonline.com to learn more about nominations and sponsorship.

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Front of the House Hospitality Employee of the Year

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Back of the House Hospitality Employee of the Year

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Front of the House Restaurant Employee of the Year

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Back of the House Restaurant Employee of the Year

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Hospitality Department Manager of the Year

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Restaurant Manager of the Year

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Chef of the Year

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Bartender of the Year

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Supplier of the Year

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Tourism Promoter of the Year

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Restaurateur of the Year

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Hotelier of the Year

Restaurant, Hospitality & Tourism Challenge • Sept. 27 • Wynlakes Country Club, Montgomer

Shot-Gun Start | Four-Man Scramble | $150 per golfer/$600 per team Registration includes golf, cart, range balls, breakfast, lunch, beverages and fabulous prizes.

SPONSORSHIP OPPORTUNITIES: •

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Platinum Sponsorship ($5,000): includes 4 golfers, course signage, premium hole sponsorship, recognition in magazine

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Beverage Cart Sponsor ($750)

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Booth on Golf Course ($350)

Gold Sponsorship ($2,500): includes 4 golfers, hole sponsorship and course signage

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Hole Sponsor ($150)

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Non-Golfer Cart ($75): includes golf to network with golfers

Silver Sponsorship ($1,000): includes 2 golfers, hole sponsorship and course signage

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MERCHANTS FOODSERVICE HOLDS RIBBON CUTTING AND OPEN HOUSE FOR CLANTON EXPANSION

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erchants Foodservice, one of the fastest-growing broadline foodservice distributors in the United States, held a ribbon cutting and open house on June 1 for an expansion to its distribution center in Clanton, Alabama.

Local officials, Merchants vendor partners and members of the Chilton County business community attended the event. Woody Cheatham, the Regional President overseeing the Clanton center, acted as master of ceremonies and welcomed guests. Andy Mercier, President and CEO, spoke on the company’s history in Clanton and its continued growth as a vital member of the community.

Ribbon cutting participants included (from left) Billy Joe Driver, mayor of Clanton; Bobby Tatum, chairman of the Merchants Board of Directors; Other speakers included Janice Hull, Congressman Gary Palmer, representing the Sixth Congressional District of director of the Chilton County Chamber Alabama; Andy Mercier, President and CEO; Donald Suber, retired president of Commerce; Billy Joe Driver, mayor and CEO; Woody Cheatham, regional president; Vincent Perez, project manager with the Alabama Department of Commerce; Rep. Jimmy Martin; of Clanton; Congressman Gary Palmer, representing the Sixth Congressional District and Janice Hull, director of the Chilton County Chamber of Commerce. of Alabama; and Vincent Perez, project manager with the Alabama Department of Commerce. Following the program, the ribbon was cut and guests enjoyed refreshments and tours of the added areas.

The Clanton center was constructed in 1999. The new expansion, valued at $8 million, is the fourth since the initial construction. The center now comprises 200,000 square feet of dry, refrigerated and frozen warehouse space with 8 million cubic feet of storage space. The center serves nearly 3,000 customers predominantly in the state of Alabama and throughout the Florida Panhandle.

The center employs 220 people. An additional 60 employees will be phased in as the expansion is completed.

“With 50 percent of the Alabama population within 150 miles, we felt this was a strategic location when we opened in 1999,” said Mercier. “We took a risk and planted our stake here in Clanton … and we have been beyond pleased with the fruit. This growth has truly been a great example of a strong local workforce and collaboration between private enterprise, local governments and local businesses.”

Headquartered in Hattiesburg, Miss, Merchants Foodservice is ranked 12th in sales volume among the approximately 2,600 food distribution companies in the U.S. with 2015 sales of nearly $650 million and 1,000 employees. In addition to the center in Clanton, other distribution centers are located in Jackson, Mississippi; Newberry, S.C.; and Tifton, Ga. The company serves 12 Southeastern states.

Food safety, sustainability and the latest technology remain at the core of the company’s mission to provide quality products and services to customers.

For more information on Merchants, visit www. merchantsfoodservice.com.

NEW DATES & LOCATION!

WHY SAVE THE DATE?

Everything to make your operation run

FASTER. CLEANER. BETTER. TASTIER.

FREE Parking EASY Road Access 200+ Exhibitors Live Tattoo Artist Show Specials New Products Culinary Demos Booze Seriously, a lot.

www.AtlantaFoodserviceExpo.com

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WHAT’S Going On

Wood Fruitticher held another successful 2016 Food Show in Sandestin, Fl. on May 5-6, 2016. ARHA Director of Member Relations Shea Perkins was on hand to promote our mission and support our members.

Dave Wood, Wood Fruitticher President and founder, pictured with Shea Perkins, ARHA Director of Member Relations.

Heartland, one of ARHA’s preferred providers, at the Wood Fruitticher Food Show.

ARHA and the Birmingham Kitchen Cabinet hosted an ABC Town Hall meeting on June 7 where Mac Gipson, the director of the Alabama Beverage Control Board, informed attendees regarding new rules and regulations for alcohol sales in the state of Alabama.

ARHA’s Shea Perkins (middle-back row) and ATC’s Patti Culp (right-front row) having fun at Wind Creek Casino’s booth at the 2016 Alabama Council of Association Executives (ACAE) Golf Tournament in May.

Birmingham area restaurants met with Mayor William Bell to discuss employment and career opportunities for Birmingham area youth on May 21.

ARHA attended the 7th Annual Bob Sykes BBQ & Blues Festival held in downtown Bessemer on May 21.

Growing in size each year, thousands of guests of all ages enjoyed a variety of local and national blues musicians.

Pictured is Van Sykes (owner) with Shea Perkins, ARHA’s Director of Member Relations and Paul DeMarco, NRA Birmingham Restaurant Advocacy Director.

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WHAT’S Going On

The Montgomery Chamber of Commerce recently held the ribbon cutting for Ram Hotel’s new Hilton Garden Inn located in the Eastchase shopping area in Montgomery.

Perdido Beach Resort and AH&LA hosted a “Heart of the House” tour on May 6 with Congressman Bradley Byrne to showcase their dedication to superior customer service, operational efficiencies, and emphasis on giving back to the community.

Bricker S. Daughtry, shareholder with Carr Allison presented seminars on behalf of ARHA in Auburn, Montgomery, and Birmingham this spring focusing on the evolving issues and challenges facing today’s business owners in keeping up with the requirements of the American Disabilities Act (ADA) and Fair Labor Standards Act (FLSA).

The Central Alabama Hospitality Attractions and Business Association (C.A.H.A.B.A.) hosted its 13th Annual Golf Classic June 2 to benefit The Southeastern Blind Rehabilitation Center Alumni Association, Inc. in Birmingham. Each scramble team included one blind veteran. ARHA sponsored a blind veteran and proceeds go towards helping blinded veterans learn skills for more independent living. Pictured above: Steve

In March, Birmingham City Councilor Valerie Abbott presented a proclamation recognizing women in the restaurant industry. Forty-one percent of Alabama’s restaurants are majority-owned by women, increasing 58 percent over the last five years.

Pierson, Greater Birmingham Convention and Visitors Bureau and Charles (Chuck) Boswell, Jr., son of Charley Boswell, the world’s most renowned blind golfer.

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WHAT’S Going On

The culinary and management teams from St. Clair Highschool Culinary and Management program (Moody High School) represented Alabama at the 2016 National ProstartÂŽ Student Invitational in Dallas, Texas April 29 - May 1. Our two Alabama teams did an outstanding job and ARHA is proud of all the students!

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2016 PROSTART NATIONAL EDUCATOR OF EXCELLENCE Melissa Allphin of Moody High School

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he Alabama Restaurant & Hospitality Alliance Foundation announced that Melissa Allphin of Moody High School has been named a 2016 ProStart National Educator of Excellence. Allphin joined 31 other nationally-ranked ProStart educators from around the nation in Chicago, for the National Restaurant Association Educational Foundation’s (NRAEF) ProStart Educator of Excellence Awards Program and Dinner, May 19, 2016, associated with the National Restaurant Association Show (NRA Show).

The NRAEF’s ProStart Educator of Excellence Award recognizes exceptional ProStart educators who are nominated by the state restaurant associations. The award honors ProStart educators who demonstrate excellence in the classroom and passion, commitment and creativity in all aspects of the ProStart program, helping their students make the most of the opportunities that ProStart offers to them.

The stories of the ProStart National Educators of Excellence provide inspiration to ProStart educators across the globe. National awardees were flown to Chicago and hosted by the NRAEF, where they attended interactive training sessions and the NRA Show, shared best practices and were honored at the Educator Excellence Awards Dinner where they were recognized by the NRAEF Board of Trustees, industry representatives and guests.

“ProStart unites the industry and the classroom to recreate a unique and unparalleled experience for students. Our dedicated ProStart educators statewide are making a difference every day, channeling young people to consider their future in the restaurant and foodservice industry – the second largest private sector employer in our nation’s economy,” said ARHA & CEO Mindy Hanan.

Melissa believes the time she has with her students is an opportunity to create that “best moment” in their lives thus far, giving them a sense of accomplishment and the attitude of “I can.”

She brings to her classroom a cross-section of experience from industry, post-secondary, and secondary education.

Having already taken a management team to NPSI in 2015, both her management and culinary teams won first place in the 2016 Alabama ProStart Invitational and competed in the recent 2016 NPSI. ProStart is offered to nearly 140,000 high school students in 50 states, the territory of Guam, and in U.S. Department of Defense schools in Europe and the Pacific. The curriculum instructs students in culinary and restaurant business management theory and practice. A majority of ProStart students and educators say that ProStart also teaches critical employability skills, such as workplace communication, teamwork and professional behavior.

“We are grateful to all of our ProStart educators and are pleased to offer this award that salutes excellence in teaching,” said Wendi Safstrom, vice president, Programs and Administration for the NRAEF.

ABOUT THE ALABAMA RESTAURANT & HOSPITALITY ALLIANCE FOUNDATION: Alabama Restaurant and Hospitality Alliance (ARHA) is the voice of the Alabama foodservice and hospitality industry. ARHA is a non-profit corporation, dedicated to serve the needs of the foodservice and hospitality industry in our state including restaurants, lodging, tourism, and hospitality service companies. For more information, visit ARHAonline.com.

ABOUT THE NATIONAL RESTAURANT ASSOCIATION EDUCATIONAL FOUNDATION: As the philanthropic foundation of the National Restaurant Association, the NRAEF exists to enhance the restaurant industry’s service to the public through education, community engagement and promotion of career opportunities. The NRAEF works to attract, develop and retain a career-oriented professional workforce for the restaurant industry. In 2016, the restaurant and foodservice industry is projected to comprise more than one million outlets and a workforce of 14.4 million employees, making it the nation’s second largest private sector employer. For more information on the NRAEF, visit NRAEF.org.

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BY LIBBY LUSSENHOP The Michigan Restaurateur

3 Things You Need to Know

ABOUT MUSIC IN THE RESTAURANT INDUSTRY Y

ou might have the speaker system, the music streaming service, and the auxiliary equipment to play songs in your restaurant, but are you missing one crucial element? Music licensing can’t be seen, heard, or locked away in a back office filing cabinet…but if you’re playing music in your bar or restaurant, it should be a part of your daily operations.

For restaurants, music can be your customer’s first impression of your establishment. Your service and products are important, of course, but music can support and shape your business by setting an atmosphere and a pace of life.

Jessica Frost is senior director of industry relations for Broadcast Music Incorporated (BMI). She works on sales and customer relations with a focus on business relations, which means she works with many restaurant associations to make sure their members understand the need for a music license.

There are three key things to keep in mind about restaurants, the music industry, and the value of a songwriter’s craft.

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1. NO MATTER HOW ACCESSIBLE MUSIC IS THESE DAYS, YOU STILL HAVE TO HAVE A LICENSE IF YOU PLAN TO PLAY MUSIC PUBLICLY.

composers, and music publishers and make every effort to ensure they receive payment for their creative work.”

A lot has changed about music in the electronic age, you can listen to anything for free on the web, and you can copy entire music albums from one device to another, but one thing remains the same. The one consistent trend in music is that the creators of music deserve to be compensated for their work.

BMI is an example of a performing rights organization that makes it especially easy to obtain a license to play a wide variety of music. They represent more than 700,000 songwriters, which means they protect more than 10.5 million musical works. The exciting fact is that a license gives any restaurant owner or operator the right to play all the songs in BMI’s catalog.

This applies to bars and restaurants, as well as television, radio stations, and more. BMI is an American performing rights organization, or a PRO. They represent songwriters, composers, and music publishers to make sure they are paid for their work whenever their music is played or performed in a public place. “The BMI approach is that we spend a lot of time educating the business owners about the value of music,” Jessica Frost explains.

“If we encounter a business that isn’t licensed, we work hard to explain the need for a music license and why songwriters need to get paid. We help them through the process of getting licensed.”

While BMI’s approach is “education first,” a failure to obtain a license could end up in court.

“The majority of business owners do the right thing and secure a license,” Jessica comments, “but a small percentage end up on the legal route.” It’s important to understand that litigation is costly for both the defendant and the business in question, so it’s best to obtain a license and play music the right way.

2. IT’S NOT JUST ABOUT THE LEGAL RISK THAT A RESTAURANT ASSUMES IF IT’S NOT LICENSED; SONGWRITERS SIMPLY DESERVE TO BE PAID FOR THEIR WORK. The professionals at performing rights organizations don’t want to take anybody to court; they are in the business of protecting songwriters because they believe in the value of their work and want their music to be publicly performed.

3. IT’S EASY TO OBTAIN AND MAINTAIN A MUSIC LICENSE.

BMI is also associated with state and national restaurant associations; they offer discounts to allied restaurants thanks to these associations. As an owner of a bar or restaurant, you would first go to www.bmi.com/ ede. On this page, you can find applications for licenses, a place to pay invoices, and ways to contact BMI for additional help.

Here is a quick look at the costs associated with a blanket license: •

The minimum fee paid is $363 per year;

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The average cost of a license is $800 per year;

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The license provides flexibility in that you can change your music license up to four times a year

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The annual fee is based on the size of your establishment and the frequency of the music performed

The process is simple, and the results are incomparable: you pay songwriters for their honest work, and you no longer risk legal repercussions (as you would if you were not licensed).

The takeaway is to get a music license and support the songwriters whose work is featured at your restaurant.

“I was raised with a deep appreciation for the craft of songwriting,” Jessica explains. “Songwriters are the ‘unsung heroes.’ They might be behind the scenes, but without them, the brilliant, award-winning artists we know and love would have nothing to sing in the first place.”

A restaurant is a business, yes, but operating a restaurant is also a craft. Artistry and creativity play a huge role in feeding your customers—and artistry and creativity are key components of songwriting as well. As Jessica puts it, “I wouldn’t walk into a restaurant, order, eat a meal, and then get up and leave without paying.”

The songwriter probably won’t be seated at one of your tables every time their song is played in the restaurant, they probably won’t be there to hold you accountable for what you owe them...but they deserve to be paid for their artistry.

A songwriter’s creative work is protected through royalties that come from establishments that play those works either as live performances or recorded versions.

“Anytime a song is played publicly; the songwriter is owed a performance rights royalty. At BMI, 85 cents of every dollar goes back to the songwriter,” Jessica Frost specifies. “We represent the interest of our songwriters,

Songwriters spend time, energy, and money honing their craft—just like you and your fellow restaurateurs.

You’ve painstakingly shaped every component of your business; songwriters make that same effort. They support your business by helping you set an atmosphere and tone for your restaurant; return the favor by getting a license and paying them for their hard work.

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Wenonah High School PROSTART® DAY Wenonah High School’s award winning ProStart® culinary program displayed their skills to local media, business owners and elected officials in Birmingham on April 20.

ProStart® is a culinary and management curriculum that has been adopted by many schools in Alabama that includes all facets of the restaurant and hospitality industry.

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The Kids & Jobs Program, our city’s largest youth employment initiative is a partnership between FOX6, the City of Birmingham Mayor’s Office Division of Youth Services and more than 80 work sites. The Kids & Jobs initiative is designed to help cultivate the professional development necessary for youth and young adults to become an integral part of the workforce. DYS has leveraged partnerships with numerous agencies in the public and nonprofit sectors of the business e workforce for the first time. community to give hundreds of our city’s youth exposure to the

PROGRAM OVERVIEW EXPOSURE (14 & 15 Year-Old) PROGRAM Because companies are usually ually unwilling to hire youth between 14 and 15 years of age, the Division of Youth Services partners with the public and nonprofit sectors of the business community to provide youth with exposure to the job experience. The EXPOSURE COMPONENT of the Kids & Jobs Program gives deserving Birmingham youth who might otherwise not be given the chance an opportunity to experience the workplace for the first time.

SUMMER EXECUTIVE & EXPLORER INTERNSHIP (SEI) The SEI Component of Kids & Jobs consists of an EXECUTIVE The EXECUTIVE PROGRAM and an EXPLORER PROGRAM..

PROGRAM provides students from 16 to 21 years of age with a unique opportunity to establish a foundation for their career path. The EXPLORER PROGRAM provides students from 16 to 21 years of age with an introduction to the workforce and a chance to explore one of the various professions offered. Prior to placement in either program, the Division of Youth Services provides job training to help program participants sharpen their professional skills. The benefits of the SEI Program are unlimited. Students who qualify for the program are provided with valuable work experience and companies gain much needed summer help.

FOX6 KIDS & JOBS INTERNSHIP DRAFT Live Broadcast Event

STUDENT WORKERS REAL WORLD, REAL RIGHTS

The ‘Kids & Jobs Draft’ is modeled after a professional sports draft. Six high school students nominated by their principals are drafted by local businesses that submit the six highest bids. Students attending high schools from the Birmingham metropolitan area can win “paid” internships with companies competing to hire some of Birmingham’s best! ‘The Draft’ is televised live on FOX6. Through this program, hundreds of Birmingham youth are employed each summer.

KIDS & JOBS EXPANSION DYS welcomes the opportunity to share best practices with municipalities interested in starting a Kids & Jobs Program in their city.

Express your interest by calling DYS at (205) 320-0879.

William A. Bell, Sr., Mayor Cedric D. Sparks, Sr., Executive Director City of Birmingham Mayor’s Office Division of Youth Services 1608 7th Avenue N | Birmingham, AL 35203 (P) 205-320-0879 | (F) 205-297-8139 | www.bhamyouthfirst.org

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LegislativeREPORT Scandal: Fictional TV Show, Alabama’s Reality

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he acclaimed TV show, Scandal, whose episodes center around affairs, corruption and manipulation in our nation’s capital, may have some keen competition from governmental officials here in Alabama.

Alabama has once again made not only state and national news, but also international news. Not because of the national championship football team, but because of scandals and alleged corruption from some of the highest levels of government.

The backdrop of the 2016 session included television and news media outlets flanking the halls of the statehouse, including, the popular NBC ‘Today Show.”

I realized the depth of the coverage regarding the Alabama scandals when I picked up the recent issue of the Vanity Fair, and lo and behold right after an article about Prince William, there appeared an article that included the alleged sex scandal by Gov. Robert Bentley. As a result of denying his affair, he has been the brunt of many jokes.

The House of Representatives Judiciary committee has begun a fact-finding study to determine if there is sufficient evidence to vote to impeach the Governor, and then will hold a trial in the Alabama Senate. But that’s not the worst of Governor Bentley’s problems. Currently, Governor Bentley is under investigation at both state and federal levels for misuse of state property and other illegal conduct.

Additionally Mike Hubbard, Speaker of the House, was indicted on 23 felonies and convicted of 12 of those charges; thus, removing Hubbard from office. For the time being, Hubbard has been replaced by Speaker Pro Tempore, Rep. Victor Gaston. At the time of this writing, Hubbard’s sentencing hearing is slated for July 8, 2016.

Hubbard’s legal team intends to appeal the verdict and he continues to maintain his innocence.

Rumors of other legislators “moonlighting” with consulting contracts have ensued and there are also rumors of potential other indictments surrounding the Hubbard case.

If that were not enough, Alabama’s other top official , Supreme Court Justice Roy Moore, was suspended from the bench in May for refusing to comply with a Federal District Court order.

Even Olivia Pope, TV show Scandals’s top gladiator, would find the state of Alabama affairs daunting.

DEBORAH MILLER Miller Development Group

End Result: A Medicaid budget not fully funded, and many legislative proposals did not receive consideration in 2016 session.

It does appear however, that besides the other scandals and indictments, the Legislature likes many sins. The multitude of bills that were debated, we’re in fact the “sin bills” relating to alcohol sales. And even today, another sin tax on soft drinks is receiving lots of consideration nationwide.

Lest we forget, we did champion the Minimum Wage Preemption that has since become a huge national issue.

ARHA continues to be on the front lines to tackle this hot topic. Additionally, ARHA closely monitored legislation covering occupancy taxes, such as AirBnB and online bookings, but in the end the legislation did not move forward. This will be a frontrunner for the 2017 session for ARHA. With all of those challenges, ARHA remains poised to tackle the tough issues important to its members. ARHA continues to monitor any discussions of a sugary drink tax that could be proposed in a special session.

We will also continue to advocate for insurance reform that deals with liquor liability, state park funding, hotel-related occupancy taxes and a host of other industry related issues.

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2016 LEGISLATIVE RECAP: Winner Winner, Chicken Dinner!

PRE-EMPTION OF LOCAL ORDINANCE MINIMUM WAGE- ACT NO. 2016-18 As reported, the first bill of general application to pass the legislature was the pre-emption of local ordinances to raise the minimum wage. It was done in record time. Thanks to the ARHA Board of Directors who were responsible for approving legislative and judicial responses regarding this issue, the National Restaurant Association for their leadership role both with financial resources, data, strategy and legal direction and the legislature, especially Rep. David Faulkner, Rep. Arnold Mooney and Sen. Jabo Waggoner.

RIGHT TO WORK CONSTITUTIONAL AMENDMENT - ACT NO. 2016-86 This constitutional amendment will be presented to Alabamians for a vote this coming November. It codifies an existing statute that states a person’s right to work may not be denied or on condition of being a member of a labor union or an affiliated association. This legislation was sponsored by Rep. Arnold Mooney.

HEALTH SAVINGS ACCOUNTS - ACT NO. 2016-345 A new state income tax deduction will be available for contributions made after Dec. 31, 2017. The Act allows for an exemption from income taxation to the annual deduction amount allowed by federal regulation.

3RD PARTY AUDIT-CREDENTIALS REQUIRED - ACT NO. HAS YET TO BE ASSIGNED Many cities and counties currently hire private audit firms in lieu of using auditors from the Department of Revenue to collect local sales and use tax and many taxpayers have discovered after attorney’s fees and accountants fees that the private firm was incorrect. The act does not abolish third-party auditors, but provides improvements to the current for-profit audit model and mandates more credentials to perform the audits that are currently required.

TRAILS COMMISSION- ACT NO. 2016-149 The act provides assistance to the current Alabama Trails Commission by allowing other state departments to assist as needed with administrative duties. It further expands to the trails commission board. The commission shall be located for administrative purposes within the Alabama Department of Economic and Community Affairs and the department shall provide necessary staff assistance to the commission.

PARK FUNDING - ACT NO. 2016-245 The act is a constitutional amendment and will be presented to Alabamians come November. If voted in the affirmative, it would prohibit the Alabama Legislature from removing funds from state parks and placing in other state funds. However, if guest revenues to the State Parks Revolving Fund exceed the threshold of $50 million in a fiscal year, the sales and use and cigarette tax revenue distributed to benefit the State Parks System shall be reduced in the following fiscal year. The amount of the reduction shall correspond to the amount of guest revenue to the State Parks Revolving Fund exceeding the threshold.

The amount of tax revenue not distributed to benefit the State Parks System shall be distributed to the General Fund.

Done and Defeated LOCAL MINIMUM WAGE BILLS DEFEATED Not long after the passage of HB 174, legislators from South Alabama apparently missed the memo on the Legislature halting local municipalities from raising minimum wage. The Mobile County Legislation Committee rejected HB 402, sponsored by Representative Bracy. The bill provided for a local constitutional amendment to allow Mobile county voters to set a $10.10/hour minimum wage starting in 2017.

UNITARY COMBINED REPORTING Unitary Combined Reporting legislation is a taxing scheme that would greatly hinder the state’s ability to attract new business. The proposed legislation would have applied to every business, both inside and outside the state, with multi-state tax obligations. The bill never made it out of committee.

TRANSIENT OCCUPANCY TAX ARHA supported this bill in its introduced form since it required third party intermediary to collect and remit sales tax.

During the final days of the session, this provision was removed and the bill essentially left the current tax remittance structure in place. ARHA supports legislation that would recognize the disparity between the tax paid by a hotel when the room is booked directly to the consumer and the amount of tax paid to the state and local governments when booked through an intermediary since the tax remitted is only the amount that the intermediary pays and not the amount paid by the customer.

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DATA BREACH This bill required anyone who has a data breach to notify the customer in a certain period of time as well as other measures. ARHA followed the lead of the Alabama Retail Association to try and craft legislation that will allow for notification but not burden businesses in a punitive fashion or require unreasonable administrative time lines. ARHA will continue to work toward that goal should the legislation continue to surface.

Monitored Legislation that Passed OVERSIGHT AND REVIEW OF TAX INCENTIVES CREATED- ACT NO. 2016-389 This act creates accountability for the tax incentives offered in Alabama. The Department of Revenue will create a four-year schedule of the economic tax incentives to be reported to the Legislature beginning with the 2018 Regular Legislative Session.

SMALL BUSINESS CREDIT IF JOBS CREATED- ACT NO. 2016-188 Beginning July 25, 2016 Alabama businesses with 75 or fewer employees can claim a one-time, $1,500 income tax credit for each new, full-time, Alabama resident employee hired for a job that pays $40,000 or more annually. The legislation was sponsored by Rep. Kyle South.

TAX CREDIT FOR HIRING APPRENTICES- ACT NO. 2016-314 The legislation provides employers with a $1,000 income tax credit for each of up to five qualified apprentices employed.

Employers must train the apprentices (16 years old or older) for at least seven months in a tax year. Each year, the tax credits allowed would be capped at $3 million, or 3,000 apprentices. The program begins with the 2017 tax year and would sunset after five years if not renewed by the Legislature.

Monitored Legislation that Failed HISTORIC TAX CREDIT The bill to extend the Historic Tax Credits for 7 years failed to make it out of the Senate after passing in the House chamber.

Monitored Alcohol Legislation WINE- ACT NO. 2016-131 Beginning July 1, a licensed winery that produces less than 50,000 gallons of table wine annually can operate one additional tasting room outside its on-site tasting room from which it can sell one case of wine, per customer, per day.

BEER- ACT NO. 2016-97 Beginning June 1, Alabama brewers and brewpubs producing less than 60,000 barrels of beer annually will be able to sell up to 288 ounces of beer per day to a customer for off-premise consumption.

DISTILLERIES- ACT NO. 2016-130 Beginning July 1, distilleries can sell a standard-size bottle (up to 750 milliliters) per customer, per day from its premises for off-premise consumption.

ON PREMISE TASTING- ACT NO. 2016-111 Beginning Oct. 1, licensed distilleries and wineries can conduct liquor and wine tastings, at no charge to consumers, in retail stores licensed for off-premise consumption as well as state liquor stores.

LOCAL SUNDAY SALES Alcohol may be sold or dispensed on Sunday by properly licensed retail licensees.

• Kellyton: Act No. 2016-224

• Cedar Bluff: Act No. 2016-289

• Rainbow City: Act No. 2016-228

• Glencoe: Act No. 2016-374

• Piedmont: Act No. 2016-284

• Tallapoosa County: Act No. 2016-376

COMMUNITY DEVELOPMENT- ACT NO. 2016-222 This act establishes an additional type of community development district that has specific parameters including alcohol within the act.

ARHANOW

ARHA’S INAUGURAL LEGISLATIVE DAY A HUGE SUCCESS On Tuesday, April 26, the Alabama Restaurant & Hospitality Alliance (ARHA) held its 2016 Legislative Day in Montgomery. More than 60 members and guests attended a luncheon which included a briefing of ARHA activities, governmental affairs and more.

ARHA honored few of the many legislators who led the charge for minimum wage pre-emption including Rep. David Faulkner (R-Mountain Brook), Sen. Jabo Waggoner (R- Vestavia Hills) and Rep. Arnold Mooney (R-Shelby and Jefferson County). Also, Miller Development Group was honored for their hard work in the bill passage.

The National Restaurant Association (NRA), American Hotel & Lodging Association (AH&LA) and Asian American Hotel Owners Association (AAHOA) updated the attendees on the latest industry issues such as new overtime rules, joint employer implications and online travel companies.

The attendees then were able to visit the Alabama Statehouse to watch the legislative session in process and advocate for our businesses and the jobs we create.

The evening concluded with the 2016 Alabama Tourism Bash, a food focused event that is marked on the calendar of every Alabama Legislator. Guests enjoyed a reception featuring some of Alabama’s finest food and drink and had the opportunity to discuss with lawmakers the impact of the restaurant, lodging and tourism industry in our state.

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ARHANOW

ARHA VISITED WASHINGTON, D.C. TO PROTECT OUR INDUSTRY’S INTERESTS ARHA attended NRA’s Public Affairs Conference in Washington, D.C. in April to discuss the issues that matter most to our industry with members of Congress.

ARHA and AAHOA members visited Washington DC in April to discuss lodging industry issues during the 2016 AH&LA Legislative Action Summit.

ARHANOW

ALABAMA TOURISM PARTNERSHIP 2016 Legislative Tourism Bash

The Alabama Tourism Partnership held their annual Legislative Bash on April 26 in Montgomery. ARHA is a proud partner and many of our members attended the event following the ARHA Legislative Day. ARHA was proud to see several member restaurants were set up serving delicious food and beverages from around the state.

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WELCOME. New Members RESTAURANT Bubba’s Seafood House

Orange Beach, AL

The Choppin Block

Springville, AL

Coastal Cooking, Inc.

Daphne, AL

DBA Danny’s Fried Chicken Grille 29

Birmingham

Grille 29

Huntsville

Guadalajara Mexican Restaurant

Huntsville

Heat Pizza Bar

Tuscaloosa, AL

Miss Dot’s

Birmingham, AL

Miss Dot’s

Tuscaloosa, AL

Pintoli’s

Satsuma, AL

Papa’s Pizza

Fairhope, AL

The Ruby Slipper

Orange Beach, AL

Sugar Kettle Café

Daphne, AL

Sugar Kettle Café

Bay Minette, AL

Ted’s Restaurant

Birmingham, AL

The Funky Feather

Arab, AL

Tropical Smoothie Café

Daphne, AL

Von’s Bistro

Mobile, AL

Grille 29, Huntsville

LODGING Comfort Inn

Homewood, AL

Redstone Hospitality, LLC

Huntsville, AL

Comfort Inn, Homewood

ALLIED Hospitality Financial and

Austin, TX

Technology Professionals R & V Hospitality Recruiters Inc

Tuscaloosa, AL

Sculpture Hospitality of Central Ala.

Vestavia, AL

Sentinel Cleaning, Inc.

Pelham, AL

TOURISM DeSoto Caverns Family Fun Park

Childersburg, AL

DeSoto Caverns, Childersburg

Proud of the company we keep

To learn more, contact Angela Ihry 605.940.9861 or angela.ihry@e-hps.com heartlandpaymentsystems.com

Exclusive health care pricing and solutions for Alabama Restaurant & Hospitality Alliance members Together, the National Restaurant Association (NRA), Alabama Restaurant & Hospitality Alliance (ARHA) and UnitedHealthcare offer special advantages for your ARHA member business:

Save with rate discounts up to*

on Medical 5% 5 Plans Specialty 5% on Benefits *Some restrictions apply.

} Health care reform guidance and solutions around the Affordable Care Act } Exclusive savings on group medical plans and specialty benefits for NRA/ARHA members } Wellness programs and services } Bilingual resources for Hispanic/Latino owners, operators and employees

Find out what the ARHA and UnitedHealthcare can do for your business.

Contact your broker, the ARHA or Amy Hathaway at (269) 792-1207 or amy_hathaway@optum.com.

Š2016 United HealthCare Services, Inc. Insurance coverage provided by UnitedHealthcare Insurance Company or its affiliates. Administrative services provided by United HealthCare Services, Inc. or their affiliates. Health Plan coverage provided by or through a UnitedHealthcare company.

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