Legislature(2003 - 2004)
02/12/2004 01:35 PM Senate L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 278-LABOR & WORKFORCE DEVELOPMENT FEES
CHAIR CON BUNDE announced SB 278 to be up for consideration.
SENATOR GARY STEVENS moved to adopt CSSB 278(L&C), version \D.
There were no objections and it was so ordered.
COMMISSIONER GREG O'CLARAY, Department of Labor and Workforce
Development (DOLWD), explained that in general terms SB 278 is a
user fee bill that offsets some of the operating costs of the
Division of Labor Standards and Safety. He deferred questions on
the fees to Mr. Grey Mitchell, Director, Division of Labor
Standards and Safety, but had a question about what was meant by
"instructional devices".
CHAIR BUNDE responded that this bill would be heard again and
those questions would be answered then.
MR. GREY MITCHELL, Director, Division of Labor Standards and
Safety, DOLWD, said the fees will help fund enforcement
enhancements in the Mechanical Inspection Section, including
filling a vacant position, and replace revenue reductions in the
Wage and Hour Section.
2:20 p.m.
TAPE 04-09, SIDE B
SENATOR HOLLIS FRENCH asked who inspects ski tows and ferris
wheels now.
MR. MITCHELL replied that amusement rides are inspected by the
Mechanical Inspection Section of the Division of Labor Standards
and Safety. Currently all inspections are performed by one
person. He related that certifying inspectors for amusement
rides is very expensive and has to be done every two years.
Typically, they are sent to either California or Florida where
there are a lot of amusement rides - and this fee will help
defray the cost of those trips.
SENATOR FRENCH asked how much the state currently charges to do
the inspections.
MR. MITCHELL replied that right now there is no fee.
SENATOR FRENCH asked him to explain what a boiler operator does.
MR. MITCHELL answered that they are licensed to do particular
types of work on particular types of boilers. The State of
Alaska has four different classes of boiler operator licenses.
In SB 278, AS 18.60.395 requires them to be licensed by the
DOLWD. Currently, there is no fee nor is there a statutory
requirement for anyone to have the license.
SENATOR FRENCH asked if inspectors are now going to be required
to have a license and that they would have to pay $200 to get
it.
MR. MITCHELL defended his position saying the statute requires
the DOLWD to provide a license. Historically, the department has
not required licensing, but some employers and different
insurance companies want to have the people who are working on
boilers in their facilities to be licensed.
That is what we're dealing with. It's not a statutory
requirement and we don't propose to have one, but if a
person does want to come out and get licensed, we want
to charge them a fee for it.
CHAIR BUNDE commented that the policy for getting a beautician's
license was revenue neutral and maybe this is a reflection of
that.
SENATOR FRENCH asked whom exactly this would cover.
MR. MITCHELL replied that it would apply to the group of people
who currently have licenses, but not everyone who works on
boilers in general. Probably individuals working on the larger
boilers would fit the bill the best. Alaska has approximately
978 individuals who have boiler operator's licenses, but he
didn't know how many are currently working. There were 300
renewals last year, which is the figure the department based its
estimate on.
CHAIR BUNDE asked if, in the past, the department has licensed
boiler operators as a courtesy for some employers, but now they
will charge a fee for the licensing.
MR. MITCHELL said that is correct.
CHAIR BUNDE asked if the voluntary flex work hour plan (section
4) meant that an employee would work four-tens instead of five-
eights or something like that.
MR. MITCHELL replied that is correct.
CHAIR BUNDE asked if the state requires a flex schedule to be
filed with the DOLWD.
MR. MITCHELL replied yes, because by statute flex schedules must
be exempted from overtime.
CHAIR BUNDE asked him to expand on the building safety account
in section 6.
MR. MITCHELL explained that the building safety account was put
into place last year and is basically a way to provide the
Mechanical Inspection Section some accountability. Section 6
directs the fees that are charged by that section into that
account and inspection services are paid out of it.
SENATOR FRENCH asked how many people he thought would be
affected by section 3 that deals with applications and
examination fees for journeymen and trainees.
MR. MITCHELL replied that section would affect 3,300 plumbers
and electricians - about 60 percent in the electrical category
and about 40 percent in the plumber category.
SENATOR FRENCH asked how the revenue neutral concept applies to
this category and what is the reason behind increasing the fees.
MR. MITCHELL replied that the department has come up short in a
few areas in the Mechanical Inspection Section due to cost
increases. As a result, an electrical inspector position has
been left vacant. The fees would first be used to fill that
position and then another position would be added. Currently, he
declared, only one inspector covers the entire State of Alaska.
SENATOR STEVENS asked why the state needs to know if an employer
has a flexible work schedule plan (regarding section 4).
COMMISSIONER O'CLARAY replied that Alaska's basic overtime law
requires the department to approve any change in the eight-hour
day work schedule. Over 240 exemptions were filed last year.
History has shown that many employers try to take advantage of
employees and that's why laws like this are on the books.
SENATOR STEVENS asked if all employers who want a flexible work
plan must file through this system.
COMMISSIONER O'CLARAY answered that is correct.
CHAIR BUNDE said they would set SB 278 aside and hear it in the
near future.
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