Legislature(2003 - 2004)
04/26/2004 09:01 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 278(L&C)
"An Act relating to fees for the inspection of recreational
devices, including instructional devices, for certificates of
fitness for electrical wiring and plumbing, for filing
voluntary flexible work hour plan agreements, and for licenses
for boiler operators; relating to the building safety account;
and providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated this bill, sponsored by the Senate Rules
Committee at the request of the Governor, "creates two new fees and
increases existing fees charged by the Department of Labor and
Workforce Development."
GREG O'CLARY, Commissioner, Department of Labor and Workforce
Development, testified this legislation relates to user fees, which
have not been increased for ten years.
GREY MITCHELL, Director, Division of Labor Standards and Safety,
Department of Labor and Workforce Development, outlined the bill.
Section 1, he stated would establish a fee for amusement and
recreational devices for each inspection performed. These fees, he
informed, would pay the cost of inspector travel and certification
for testing that must occur outside Alaska, and subsequently pay
the cost to maintain the inspection services.
Mr. Mitchell detailed that Section 2 would impose a $200 fee for
boiler operator licenses, pointing out that no fees currently are
imposed for this license and the fee would support the program that
administers testing and issues the licenses.
Mr. Mitchell next informed that Section 3 would increase the
existing license fee by $20 for electricians and plumbers from $160
to $200 for a two-year. He reported this fee was last increased in
the year 1993 and the increased revenues would pay the cost of an
additional electrical inspector position, which along with the
current two positions, would provide "a good coverage area" for the
State with one inspector located in Southeast Alaska, one in
Southcentral and the third located in the Northern areas. He noted
the number of plumbing inspectors would not change.
Mr. Mitchell then explained that Section 4 relates to a filing fee
and qualified that the revenues from this fee would not be utilized
to support inspection services, but would rather be deposited to
the State general fund.
Commissioner O'Clary interjected that Co-Chair Green has proposed
an amendment to Section 4.
Mr. Mitchell continued that Sections 5 and 6 would establish that
the fees charged in Sections 1 through 3 would be deposited into
the Building Safety Account, a sub-account of the State general
fund utilized for the mechanical inspection sections programs. He
remarked this office operates "as close as you can get in
government, like a business", explaining that the fees charged are
directly used to fund the services provided.
Mr. Mitchell concluded with Section 7 that establishes the
effective date.
Senator Olson asked the number of people who would be affected by
the fees imposed in Section 1 for inspection of recreational and
amusement vehicles.
Mr. Mitchell replied that approximately 50 businesses in the State
operate recreational devises. He noted this includes businesses
that operate go-carts, ski lifts and bumper cars. He stated that an
amendment to the companion legislation adopted by the House of
Representatives would exempt from the fee a company such as Golden
Wheels, the largest operator, to employ inspectors from out-of-
state. He relayed the Department would support such an amendment to
the Senate bill as well.
Senator Olson referenced the $100 filing fee for applications for
flexible work schedules proposed in Section 4. He asked if public
employers would be subject to this fee as well as the private
sector. He exampled prison guards working 12-hour shifts.
Mr. Mitchell responded this legislation would only apply to private
businesses, noting the current exemption in the statute requiring
overtime pay for flexible work hour plans. He used workweeks of
four 10-hour days as an example. He stated this legislation would
impose a fee for applications for the exemption. He reported the
Department received approximately 200 such applications the
previous year.
Senator Bunde clarified the provisions of Section 4 would not apply
to State negotiated union contracts that allow State workers to
work less than 40 hours per week.
Mr. Mitchell affirmed.
Amendment #1: The amendment deletes "for filing voluntary flexible
work hour plan agreements," from the title of the bill on page 1,
lines 2 and 3. The amended language reads as follows.
"An Act relating to fees for the inspection of recreational
devices, including instructional devices, for certificates of
fitness for electrical wiring and plumbing, and for licenses
for boiler operators; relating to the building safety account;
and providing for an effective date."
This amendment also deletes Section 4 from the bill on page 2,
lines 7 - 10, which read as follows.
Sec. 4. AS 23.10.060 is amended by adding a new subsection to
read:
(f) An employer shall pay a nonrefundable fee of $100 for
each voluntary flexible work hour plan agreement that the
employer files with the department under (d)(14) of this
section.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green explained that current statute require employers to
pay employees overtime pay for work performed beyond 40 hours per
week or eight hours per day. She noted this statute also allows an
employer and an employee to mutually agree to an alternative
arrangement, such as four ten-hour workdays within a week, without
overtime compensation, provided that the employer submits to the
Department of Labor and Workforce Development a "voluntary flexible
work plan". She opposed the provision in this legislation that
would impose a $100 filing fee to the employer, as it involves a
voluntary agreement between the employer and employee.
Co-Chair Wilken calculated the fiscal note for this legislation
would become zero if this amendment were adopted.
Commissioner O'Clary informed that a zero fiscal note would be
acceptable to the Department.
Co-Chair Wilken removed his objection to the adoption of the
amendment.
Senator Bunde understood that fees are intended to equal the cost
of processing licenses, permits, etc. He surmised therefore that if
this amendment passes, flexible work plans would no longer be
required or filed with the Department to negate any expense to the
Department.
Commissioner O'Clary replied that the notification would continue
to be required but that no fees would be collected for this
service.
Senator Bunde asked what the Department does with the flexible work
plan notifications.
Mr. Mitchell reaffirmed that the flexible work plans would still be
required through regulation. He stated that the Department reviews
these plans to ensure they meet the intent of the overtime
exemption provisions.
Senator Bunde remarked that administering this program must incur
an expense to the Department.
Mr. Mitchell affirmed that staff time is spent reviewing and
approving the flexible work plans.
Senator Bunde asked the cost.
Mr. Mitchell did not know the exact amount.
Senator Bunde opined that the cost should be determined and
reflected in the fiscal note.
Co-Chair Green pointed out this amendment would maintain the status
quo of the program, as no fees are currently collected.
Co-Chair Wilken removed his objection to the adoption of the
amendment.
Senator Bunde objected. He asserted that the fiscal note should not
be zero, but rather should reflect the cost of administering the
program.
Co-Chair Wilken asked the approximate range of the cost.
Commissioner O'Clary qualified that any estimate would be
speculation and very approximate.
Mr. Mitchell calculated that approximately 200 to 250 flexible work
plans are filed each year and that depending upon the complexity,
each plan could require up to one-half hour to review. He noted
that simpler plans could be reviewed in ten minutes. He pointed out
however, that staff time is only a portion of the program's
expenses and that office space and other expenses are incurred. He
estimated the program would cost approximately $2500 per year.
Co-Chair Wilken asked if the margin of error would be approximately
$1000.
Mr. Mitchell agreed this was a fair assessment.
Senator Bunde calculated the cost per filing to be approximately
$10.
Mr. Mitchell agreed this is an approximate amount.
Senator Bunde requested an updated fiscal note.
Co-Chair Wilken suggested the Committee adopt the amendment and
hold the bill to await an updated fiscal note.
Without objection the amendment was ADOPTED.
Co-Chair Wilken ordered the bill HELD in Committee.
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