Legislature(2001 - 2002)

04/02/2002 03:40 PM Senate STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                 HB 262-BUILDING SAFETY ACCOUNT                                                                             
                                                                                                                              
AMY  ERICKSON,   staff  to  Representative  Murkowski,   read  the                                                              
following into the record:                                                                                                      
                                                                                                                                
     House   Bill   262   is   a   fees-for-service   measure                                                                   
     establishing  a building  safety  account  to allow  the                                                                   
     Department  of  Labor to  collect  fees to  support  its                                                                   
     mechanical  inspections program  and, more  importantly,                                                                   
     to  catch  up  on a  serious  and  sizeable  backlog  of                                                                   
     elevator and boiler inspections.                                                                                           
                                                                                                                                
     Currently  the mechanical  inspection section  generates                                                                   
     just over  $1 million in  general funds and  is allotted                                                                   
     about $695,000. HB 262 allows  the department to collect                                                                   
     fees  and  gives  the authority  to  utilize  the  money                                                                   
     generated  for those fees.  The fees  range from $40  to                                                                   
     about $105 depending on the type of vessel.                                                                                
                                                                                                                                
     Certificates  of  fitness  for   both  electricians  and                                                                   
     plumbers  also generate  fees. The  sizeable backlog  of                                                                   
     boiler  and elevator  inspections  is  a growing  safety                                                                   
     concern. The boiler backlog  has reached about 6,000 and                                                                   
     for elevators it's about 350.                                                                                              
                                                                                                                                
     Instantly  the  Americans  with   Disabilities  Act  has                                                                   
     caused the number of elevators  to roughly double in the                                                                   
     last  eight  years. Passage  of  HB  262 will  give  the                                                                   
     mechanical  inspections program  the ability to  restore                                                                   
     three  new inspectors  to the  program  and to  generate                                                                   
     enough  funds to eliminate  the backlog  of boilers  and                                                                   
     elevators in approximately two years.                                                                                      
                                                                                                                                
CHAIRMAN THERRIAULT verified that  this wouldn't increase fees and                                                              
would not impose  new fees on classes of work  that currently have                                                              
not had fees. It's simply allocating  the funds that are generated                                                              
from that program.                                                                                                              
                                                                                                                                
AMY ERICKSON agreed  and said Remond Henderson could  speak to the                                                              
fiscal note.                                                                                                                    
                                                                                                                                
CHAIRMAN THERRIAULT noted that general  fund dollars could be used                                                              
now  to restore  three new  inspectors  to the  program, but  this                                                              
provides a tracking mechanism.                                                                                                  
                                                                                                                                
AMY ERICKSON agreed.                                                                                                            
                                                                                                                                
REMOND  HENDERSON, Director  of  Administrative  Services for  the                                                              
Department of Labor  and Workforce Development, said  he was there                                                              
to  testify on  the fiscal  note and  answer questions  on it.  He                                                              
could answer program questions to a limited degree.                                                                             
                                                                                                                                
The fiscal  note requests  that positions  be established  for two                                                              
boiler  inspectors and  one  elevator inspector.  In  FY 03  those                                                              
three inspectors would cost $234,600  for a ten month period while                                                              
their inspections would generate  $242,800. In FY 04 they show the                                                              
additional  cost   for  extra  two  months  of   $41,400  and  the                                                              
additional  two months  of  revenue generated  of  $49,700. FY  07                                                              
shows  a reduction  of  one position  because  they  expect to  be                                                              
caught up with the backlog of inspections by that time.                                                                         
                                                                                                                                
The  Fund Source  section of  the note  shows a  reduction of  the                                                              
general funds that are currently  in the budget by $345,700, takes                                                              
away the  general program  receipts, and  replaces those  with the                                                              
new Building Safety Account fund that is established.                                                                           
                                                                                                                                
CHAIRMAN THERRIAULT  noted the building safety account  has a fund                                                              
source code.                                                                                                                    
                                                                                                                                
MR. HENDERSON said the 1172 code was just established.                                                                          
                                                                                                                                
CHAIRMAN  THERRIAULT  asked  if  it  was  already  established  or                                                              
whether it would be established by passage of the bill.                                                                         
                                                                                                                                
MR. HENDERSON said it would be established by passage of HB 262.                                                                
                                                                                                                                
CHAIRMAN THERRIAULT asked whether  this wouldn't be a general fund                                                              
building safety account.                                                                                                        
                                                                                                                                
MR. HENDERSON replied  it is showing a reduction  in general funds                                                              
because that is where funds are currently  budgeted and they don't                                                              
currently have authority for a Building Safety Account.                                                                         
                                                                                                                                
CHAIRMAN THERRIAULT  wanted confirmation that the  Building Safety                                                              
Account would be a general fund account.                                                                                        
                                                                                                                                
MR. HENDERSON confirmed it would be a general fund account.                                                                     
                                                                                                                                
CHAIRMAN  THERRIAULT asked  whether it  would show  up as  general                                                              
fund spending and take separate legislative  action to put it into                                                              
the non general fund column.                                                                                                    
                                                                                                                                
MR. HENDERSON explained it wouldn't.  In setting up the account it                                                              
appears as  a non-general  fund account so  it is technically  off                                                              
budget.                                                                                                                         
                                                                                                                                
CHAIRMAN THERRIAULT  said Mr. Balash  pointed out that  section of                                                              
the bill to him and he understands.                                                                                             
                                                                                                                                
SIDE B                                                                                                                          
4:25 p.m.                                                                                                                       
                                                                                                                                
CHAIRMAN  THERRIAULT  asked  where   the  request  for  the  three                                                              
additional  positions   figured  into  the   Governor's  submitted                                                              
budget.                                                                                                                         
                                                                                                                                
MR.  HENDERSON  replied  those  positions  are  requested  in  the                                                              
operating  budget   as  general   fund  increments.   They  aren't                                                              
completely comfortable with that  and prefer this method. With the                                                              
passage  of the  bill, this  is the  proper vehicle  to show  that                                                              
those positions would generate the  additional proceeds to pay for                                                              
themselves.  He agreed  that there  are funds  that are  generated                                                              
now, but they don't have the authority to spend those.                                                                          
                                                                                                                                
SENATOR PHILLIPS asked Ms. Erickson who requested the bill.                                                                     
                                                                                                                                
MS. ERICKSON responded it was the Department of Labor.                                                                          
                                                                                                                                
SENATOR PHILLIPS  then asked Mr. Henderson whether  the department                                                              
contacted the Governor to introduce the bill.                                                                                   
                                                                                                                                
MR.  HENDERSON  thought Representative  Murkowski  introduced  the                                                              
bill at  the request of the  Governor's Office and  the Department                                                              
of Labor.                                                                                                                       
                                                                                                                                
SENATOR PHILLIPS asked whether the Governor could do it himself.                                                                
                                                                                                                                
MR. HENDERSON said he probably could have.                                                                                      
                                                                                                                                
REBECCA NANCE  GAMEZ, the Deputy  Commissioner for  the Department                                                              
of  Labor, said  Commissioner  Flanagan  discussed  this with  the                                                              
Governor,    received   his   approval    and   then    approached                                                              
Representative Murkowski to introduce the legislation.                                                                          
                                                                                                                                
CHAIRMAN THERRIAULT  commented this  is not  an unusual  course of                                                              
action.                                                                                                                         
                                                                                                                                
There was no prepared committee substitute  and no amendments were                                                              
offered.                                                                                                                        
                                                                                                                                
SENATOR DAVIS  made a motion  to move  HB 262 and attached  fiscal                                                              
note from committee with individual recommendations.                                                                            
                                                                                                                                
There being no objection, HB 262 moved from committee.                                                                          

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