Legislature(1993 - 1994)

04/15/1994 09:05 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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  SENATE BILL NO. 376                                                          
                                                                               
       An Act relating to  fees charged by state agencies  for                 
       certain  services  and  to reimbursement  for  expenses                 
       incurred by  the state  in providing certain  services;                 
       and providing for an effective date.                                    
                                                                               
  Upon reconvening  the meeting, Co-chair  Frank directed that                 
  SB 376 be brought on for  discussion.  CHERYL FRASCA, Office                 
  of the Governor, came before committee.   She explained that                 
  SB  376  would implement  "several  fee changes  to existing                 
  law."  She then commenced a sectional review:                                
                                                                               
  Sec. 1.   Allows the Dept.  of Revenue to  charge a fee  for                 
  alcohol-       server awareness  courses.    Last  year  the                 
                 legislature   passed  legislation   requiring                 
                                                                               
                                                                               
                 alcohol  servers  to  complete  an  awareness                 
                 course.                                                       
                                                                               
  Sec. 2.   Provides the  Dept. of Public  Safety authority to                 
            promulgate regulations and charge fees for permits                 
            to those servicing portable fire extinguishers and                 
            those who design,  install and service fire  alarm                 
            systems.   KENNETH LEA, Deputy Fire Marshal, Dept.                 
            of  Public   Safety,  came  before   committee  in                 
            response  to questions  from Co-chair  Frank.   He                 
            explained that  permitting was established  at the                 
            request  of   industry.    An  ad   hoc  committee                 
            suggested  collection of  an associated fee.   Mr.                 
            Lea voiced need  to maintain quality control  over                 
            both those  who design  and service fire  systems.                 
            During the  transition  period of  June 10,  1993,                 
            through  June 10,  1996, anyone  who is  presently                 
            doing this  type of  work in Alaska  may obtain  a                 
            permit based on  past experience.   New people  in                 
            the  trade   will  be   required  to   demonstrate                 
            proficiency  by  documenting  past experience  and                 
            passing   a   nationally   recognized  engineering                 
            technician certification test.                                     
                                                                               
            Further   discussion   followed   regarding   fees                 
            associated  with various  permits as  well as  the                 
            length of time for which the permit would be good.                 
            Additional discussion ensued regarding  the public                 
            process  associated  with  issue   of  regulations                 
            establishing the proposed fees.  Mr. Lea estimated                 
            that   fees   would   generate   $29.2  for   fire                 
            extinguishers and  $38.5 from fire  alarm systems.                 
            Cheryl  Frasca  directed attention  to information                 
            set forth on accompanying fiscal notes.                            
                                                                               
            Co-chair Frank  asked that Mr. Lea provide written                 
            information on the  interrelationship between  the                 
            permit  for   fire  sprinkler   systems  and   the                 
            mechanical administrator permit.                                   
                                                                               
  Sec. 3.   Allows the  Dept. of Public Safety to charge a fee                 
  for                                                                          
            for  permits  issued  to those  who  use dangerous                 
            fireworks   displays.     Approximately   $3.0  is                 
            expected to be generated  in FY 96 as a  result of                 
            this fee.                                                          
                                                                               
  End:      SFC-94, #62, Side 1                                                
  Begin:    SFC-94, #62, Side 2                                                
                                                                               
  Co-chair Frank stressed need for language within the bill to                 
  ensure  that  fees bear  a strict  relationship to  costs of                 
  administration  of  permit  programs.   Ms.  Frasca  noted a                 
  similar provision relating to program receipts.  Departments                 
                                                                               
                                                                               
  are not to make a profit  from program receipts that support                 
  a program.                                                                   
                                                                               
  Sec. 4.   Allows  the  Dept.  of  Public  Safety to  set  in                 
  regulations                                                                  
            the fee charged for retail fireworks permits.  The                 
            current statutory fee for those who sell fireworks                 
            is $10.                                                            
                                                                               
  Sec. 5.   Allows  the  Dept.  of  Public  Safety to  set  in                 
  regulations         the fee charged for  wholesale fireworks                 
                      permits.  The statutory fee is presently                 
                      $50.  Co-chair  Frank noted  information                 
                      indicating that  the proposal  is for  a                 
                      wholesale  permit at  $500 and  a retail                 
                      permit at $100.  He again  stressed need                 
                      to ensure a strict  relationship between                 
                      the cost  of the permit  program and the                 
                      fee  paid.     Taxing  of  an   activity                 
                      represents separate policy.                              
                                                                               
  Sec. 6.   Allows the Dept. of Public Safety to increase fees                 
  for                                                                          
            driver  training  school and  instructor licenses.                 
            The present fee is $25 for training schools.  That                 
            would increase  to $100.  Instructor  licenses are                 
            now $5.  They would increase to $25.                               
                                                                               
  Sec. 7.   Allows the  Dept. of  Corrections to seek  payment                 
  for                                                                          
            medical care from third  parties such as insurance                 
            companies,  the  veterans  administration,  Indian                 
            health services, or other federal agencies.                        
                                                                               
  Sec. 8.   Allows the Dept. of Environmental Conservation  to                 
  charge                                                                       
            for   direct   costs  associated   with  pesticide                 
            registration, subdivision plan  review, bank  loan                 
            audits, analysis of  water systems, and regulation                 
            of  motor vehicle  fuels.    Senator Sharp  raised                 
            concern regarding  indirect  costs.    Ms.  Frasca                 
            explained that questioned  language was  contained                 
            within  a  House   version  of  the  bill.     KIT                 
            BALLENTINE,   Acting    Director,   Division    of                 
            Environmental  Health,   Dept.  of   Environmental                 
            Conservation,  concurred.  She further  advised of                 
            discussion in House hearings regarding removal  of                 
            the  indirect charge.   Cheryl Frasca  attested to                 
            removal of such  language from Senate versions  of                 
            the bill as well.                                                  
                                                                               
  Senator Kelly directed attention  to page 5, lines 8  and 9,                 
  subsection (14),  and asked  how the  department intends  to                 
  regulate  motor  vehicle fuels  to  control emissions.   LEN                 
                                                                               
                                                                               
  VERRELLI, Chief,  Air Quality  Management Section, Dept.  of                 
  Environmental Conservation, explained that  activity relates                 
  to  compilation  of information  to  exempt Alaska  from low                 
  sulfur  fuel   requirements.    Senator   Kelly  voiced  his                 
  understanding  that  the  proposed   bill  would  allow  the                 
  department   to  establish   a  fee  structure   to  capture                 
  sufficient  funds  to  conduct the  project.    Mr. Verrelli                 
  concurred and noted the many interests in Alaska  that would                 
  be impacted by  such a waiver.   Application for the  waiver                 
  may only be  made by  the state.   Co-chair Frank  requested                 
  additional written information on the project.                               
                                                                               
  Discussion  followed  regarding  analyses  conducted by  DEC                 
  versus private labs.  Senator Sharp voiced his understanding                 
  that language within the bill  prohibits DEC from conducting                 
  analyses  if certified private labs are able  to do so.  Mr.                 
  Verrelli concurred.   In response to further  questions from                 
  the  Senator, Mr.  Verrelli  attested to  problems resulting                 
  from lack  of certified  labs within  the state.   Necessary                 
  equipment involves great expense.  That is how the state lab                 
  got started.  DEENA HENKINS, Chief, Drinking Water and Water                 
  Treatment  Section,  Dept.  of  Environmental  Conservation,                 
  explained that certified laboratories must be  available for                 
  public water system  analyses in  order to maintain  primacy                 
  for  state  water programs.    Private labs  have  thus been                 
  certified to conduct that analysis.  The state must continue                 
  to do needed analyses in situations  where the tests are too                 
  expensive for  private labs  to undertake,  and the  holding                 
  time on the  sample is too short to allow for shipment to an                 
  out-of-state lab.                                                            
                                                                               
  Sec. 9.   Is similar to an effective date clause.  It allows                 
            departments to commence  work on regulations prior                 
            to the actual effective date of the proposed bill.                 
                                                                               
  Sec. 10.  Provides an immediate effective date for Sec. 9.                   
                                                                               
  Sec. 11.  Provides a July 1, 1994, effective date.                           
                                                                               

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