03/14/2018 09:00 AM Senate FINANCE

HOUSE BILL NO. 114                                                                                                            
                                                                                                                                
     "An Act relating to boiler and unfired pressure vessel                                                                     
     inspection reports and fees."                                                                                              
                                                                                                                                
9:02:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SAM    KITO,   SPONSOR,    introduced   the                                                                    
legislation.                                                                                                                    
                                                                                                                                
DEBORAH KELLY,  DIRECTOR, DIVISION  OF LABOR  AND STANDARDS,                                                                    
DEPARTMENT  OF LABOR  AND  WORKFORCE DEVELOPMENT,  discussed                                                                    
the Sectional Analysis (copy on file):                                                                                          
                                                                                                                                
     Section  1 Reduces  the time  allowed to  submit boiler                                                                    
     and  pressure   vessel  inspection  reports   from  the                                                                    
    current 30 days following an inspection to 15 days.                                                                         
                                                                                                                                
     Section 2  Adds a  new subsection directing  reports to                                                                    
     be  filed   online  via  the   department's  electronic                                                                    
     inspection report  system or pay  a $10 fee  for filing                                                                    
     reports  on non-electronic  forms. Also  specifies that                                                                    
     filing fees  shall be deposited in  the building safety                                                                    
     account.                                                                                                                   
                                                                                                                                
     Section  3 Clarifies  that the  filing  fee charged  in                                                                    
     Section 2 of this bill  is separate from any inspection                                                                    
     fee that  may be charged under  AS 18.60.360 Inspection                                                                    
     fees.                                                                                                                      
                                                                                                                                
     Section  4 Amends  the Definition  of program  receipts                                                                    
     and    non-general    fund    program    receipts    AS                                                                    
     37.05.146(c)(53)   to   specify  that   boiler/pressure                                                                    
     vessel   inspection  report   filing   fees  shall   be                                                                    
     deposited in the building safety account.                                                                                  
                                                                                                                                
     Section  5   Establishes  that  this  Act   applies  to                                                                    
     inspections  begun on  or after  the effective  date of                                                                    
     this Act.                                                                                                                  
                                                                                                                                
Senator  Stevens  surmised  that  there  was  no  additional                                                                    
charge to file online. He  remarked that everyone would need                                                                    
to comply to the 15 days.  Ms. Kelly agreed. She stated that                                                                    
the emailed  pdf reports  would also be  charged a  fee. The                                                                    
online direct-entry system  would not have a  fee. She added                                                                    
that the reduced time frame would apply to everyone.                                                                            
                                                                                                                                
Senator  Stevens  surmised  that  the changes  were  not  an                                                                    
onerous  requirement. Ms.  Kelly  replied that  most of  the                                                                    
reports were submitted soon after the actual inspection.                                                                        
                                                                                                                                
Senator von Imhof wondered whether  the length of the report                                                                    
was substantial.  Ms. Kelly replied  that she  believed that                                                                    
the report was one or two pages.                                                                                                
                                                                                                                                
9:06:54 AM                                                                                                                    
                                                                                                                                
Senator  von  Imhof felt  that  some  may believe  that  any                                                                    
electronic submission  would require  a fee. She  hoped that                                                                    
the differentiating  language would  be clear.  She wondered                                                                    
whether  it would  be difficult  to collect  that ten-dollar                                                                    
fee.  Ms.  Kelly  replied  that she  did  not  anticipate  a                                                                    
problem,  because most  report  submissions  were by  larger                                                                    
insurance companies.  She stated that the  outreach would be                                                                    
relatively simple.                                                                                                              
                                                                                                                                
Senator Olson queried any opposition  to the bill. Ms. Kelly                                                                    
replied  that she  was not  aware of  any obligation  to the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Senator  Olson wondered  whether there  were inspections  in                                                                    
rural  Alaska, which  may be  more difficult  than the  more                                                                    
urban areas.  Ms. Kelly  responded that  many of  the boiler                                                                    
inspections in  the rural communities were  conducted by the                                                                    
state  inspectors.  She  stated  that  internet  access  was                                                                    
needed to submit the report.                                                                                                    
                                                                                                                                
Vice-Chair  Bishop  remarked   that  the  bill  specifically                                                                    
targeted   a  third   party.  Ms.   Kelly  replied   in  the                                                                    
affirmative.  The  boilers  were  either  inspected  by  the                                                                    
department or a third party.                                                                                                    
                                                                                                                                
Vice-Chair Bishop  surmised that  the reports  were expected                                                                    
to be submitted in a timely fashion. Ms. Kelly agreed.                                                                          
                                                                                                                                
Co-Chair   MacKinnon   wondered  whether   the   legislation                                                                    
referred  to  a  non-paper  filing. Ms.  Kelly  agreed.  She                                                                    
stated that the fee would also apply to a paper filing.                                                                         
                                                                                                                                
Vice-Chair  Bishop asked  whether  there  were still  annual                                                                    
inspections. Ms.  Kelly replied that boilers  were inspected                                                                    
on a cycle of between two and five years.                                                                                       
                                                                                                                                
9:11:33 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED and CLOSED public testimony.                                                                          
                                                                                                                                
Vice-Chair Bishop discussed the  fiscal note from Department                                                                    
of Labor and Workforce Development.                                                                                             
                                                                                                                                
Co-Chair MacKinnon stated that amendments were due by                                                                           
5:00pm the upcoming Friday, and discussed the week's                                                                            
schedule.                                                                                                                       
                                                                                                                                
HB 114 was HEARD and HELD in committee for further                                                                              
consideration.