Legislature(2009 - 2010)BELTZ 105 (TSBldg)

01/26/2010 02:00 PM Senate LABOR & COMMERCE


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02:03:03 PM Start
02:06:06 PM SB97
02:48:07 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
+= SB 97 CRANE OPERATOR LICENSES TELECONFERENCED
Moved CSSB 97(L&C) Out of Committee
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 26, 2010                                                                                        
                           2:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joe Paskvan, Chair                                                                                                      
Senator Joe Thomas, Vice Chair                                                                                                  
Senator Bettye Davis                                                                                                            
Senator Kevin Meyer                                                                                                             
Senator Con Bunde                                                                                                               
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 97                                                                                                              
"An Act relating to the licensing of crane operators; and                                                                       
providing for an effective date."                                                                                               
     MOVED CSSB 97(L&C) OUT OF COMMITTEE                                                                                        
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  97                                                                                                                  
SHORT TITLE: CRANE OPERATOR LICENSES                                                                                            
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
02/04/09       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/09       (S)       L&C, FIN                                                                                               
03/19/09       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
03/19/09       (S)       Heard & Held                                                                                           
03/19/09       (S)       MINUTE(L&C)                                                                                            
01/26/10       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
GRAY MITCHELL, Director                                                                                                         
Division of Labor Standards and Safety                                                                                          
Department of Labor and Workforce Development (DOLWD)                                                                           
POSITION STATEMENT:  Supported SB 97.                                                                                         
                                                                                                                                
JERRY ANDREWS                                                                                                                   
Pipeline Training Administrator                                                                                                 
Department of Labor and Workforce Development (DOLWD)                                                                           
POSITION STATEMENT: Supported SB 97.                                                                                          
                                                                                                                                
ROB PETERSON, District Representative                                                                                           
Operating Engineers                                                                                                             
POSITION STATEMENT: Supported SB 97.                                                                                          
                                                                                                                                
PAULA SCAVARA, Legislative Liaison                                                                                              
Department of Labor and Workforce Development (DOLWD)                                                                           
POSITION STATEMENT:  Suggested changing the effective  date of SB
97.                                                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:03:03 PM                                                                                                                    
CHAIR JOE PASKVAN  called the Senate Labor  and Commerce Standing                                                             
Committee meeting to order at  1:35 p.m. All members were present                                                               
at the call to order.                                                                                                           
                                                                                                                                
                 SB  97-CRANE OPERATOR LICENSES                                                                             
                                                                                                                                
2:06:06 PM                                                                                                                    
CHAIR  PASKVAN announced  SB 97  to be  up for  consideration. He                                                               
said  this bill  was  advanced  by the  Department  of Labor  and                                                               
Workforce Development (DOLWD), but was  introduced as a Labor and                                                               
Commerce Committee bill.                                                                                                        
                                                                                                                                
2:07:30 PM                                                                                                                    
GRAY MITCHELL, Director, Division  of Labor Standards and Safety,                                                               
Department of  Labor and Workforce  Development (DOLWD),  said he                                                               
had  a resident  expert in  cranes  with him  and introduced  Mr.                                                               
Andrews.                                                                                                                        
                                                                                                                                
JERRY  ANDREWS, Pipeline  Training  Administrator, Department  of                                                               
Labor and Workforce Development (DOLWD),  said in a past position                                                               
he was a  training coordinator for the  operating engineers Local                                                               
302  and  currently  carries  an   National  Commission  for  the                                                               
Certification of  Crane Operators  (NCCCO) certification  for all                                                               
levels.                                                                                                                         
                                                                                                                                
MR. MITCHELL  updated the committee  that crane  accident reports                                                               
continue to  come in from across  the country with an  average of                                                               
60-80  fatalities per  year.  Alaska has  avoided  a fatal  crane                                                               
incident over the  last year, but in the 10  years prior to 1997,                                                               
it  had  15  crane  accidents  with 10  serious  injuries  and  9                                                               
fatalities.                                                                                                                     
                                                                                                                                
2:11:11 PM                                                                                                                    
In general,  accidents with  smaller equipment  can be  deadly as                                                               
well,  he  said, and  related  how  two workers  suffered  severe                                                               
injuries  when  a  small,  powered,  industrial,  platform  truck                                                               
outside the  capital building  fell over  this summer.  The state                                                               
has alleged  that the operator  didn't have enough  experience or                                                               
training and wasn't  properly certified to operate  that piece of                                                               
equipment. This is  a prime example of what can  happen when non-                                                               
qualified people get behind the controls.                                                                                       
                                                                                                                                
2:13:00 PM                                                                                                                    
He   said   the   federal    Occupational   Safety   and   Health                                                               
Administration (OSHA)  is in  the process  of revising  its crane                                                               
standards, a large  package of regulations that  apply across the                                                               
industry.  This process  has  been  going on  since  2002 and  is                                                               
expected to be  finished by July of 2010. If  that happens, crane                                                               
operators  will  have a  four-year  window  to become  certified.                                                               
Alaska can't  wait that long and  that is where SB  97 comes into                                                               
play. This bill  goes beyond OSHA regulations that  only apply to                                                               
protection of  employees; SB  97 is  designed to  protect general                                                               
public safety and  covers anyone who gets behind  the controls of                                                               
a  crane. Since  last year  two more  states, Maryland  and North                                                               
Carolina,  have  established  a requirement  for  crane  operator                                                               
certification. Studies have shown  this certification does make a                                                               
difference.                                                                                                                     
                                                                                                                                
2:14:50 PM                                                                                                                    
MR.  MITCHELL said  that  more crane  training  is becoming  more                                                               
accessible. Just  two weeks  ago the  Crane Institute  of America                                                               
provided a four-day training course  in Anchorage, and the Alaska                                                               
Crane Consultants  in Kenai provides routine  training throughout                                                               
the  state.   Alaska  does  have   licensing  laws   for  various                                                               
occupations.  For example,  a person  has to  have 1650  hours of                                                               
accredited  training at  a cost  of  $6,000 (in  Alaska), pass  a                                                               
test,  pay $205  in fees  and obtain  a license  in order  to cut                                                               
hair. Alaska  should not wait for  a long string of  accidents to                                                               
establish crane operator licensing.                                                                                             
                                                                                                                                
2:15:30 PM                                                                                                                    
SENATOR BUNDE asked him how much  the crane training costs and to                                                               
walk them through a training program.                                                                                           
                                                                                                                                
MR. MITCHELL replied  that in order to sit for  the crane exam, a                                                               
minimum  experience of  1,000  hours of  crane  operator time  is                                                               
required. The pre-exam training is an intensive four-day course.                                                                
                                                                                                                                
2:16:49 PM                                                                                                                    
MR. ANDREWS  added that becoming  a crane operator is  not unlike                                                               
becoming  a  truck  driver  by  passing  the  commercial  drivers                                                               
license (CDL)  test. People  do not  have to be  a member  of any                                                               
local  union, although  the unions  offer  that training  through                                                               
their  apprenticeship   programs.  Crane   operator  is   not  an                                                               
"apprenticable" occupation; it is  8,000 hours of work experience                                                               
and covers all areas of the  occupation that the NCCCO would test                                                               
on. Currently, as  long as an individual is healthy  and can pass                                                               
a medical examination and a  written and practical test, they can                                                               
take the  test in  Anchorage, Fairbanks,  Kenai, and  Juneau. The                                                               
operating  engineers in  Juneau  provide the  book work  training                                                               
only  for its  members.  North Slope  employers  have taken  this                                                               
training  to  the  North  Slope and  the  Training  Institute  of                                                               
American does training throughout the state.                                                                                    
                                                                                                                                
SENATOR  BUNDE  said  if  this  bill  bets  passed  and  operator                                                               
trainees can't  get the  1,000 hours  unless they  are certified,                                                               
that creates a catch-22 situation.                                                                                              
                                                                                                                                
MR. MITCHELL  replied that a provision  in the bill allows  for a                                                               
trainee   to  become   licensed  without   the  full   journeyman                                                               
certification. But it requires  direct and continuous supervision                                                               
by a licensed crane operator.                                                                                                   
                                                                                                                                
SENATOR  BUNDE said  he didn't  oppose the  safety factor  in the                                                               
bill,  but he  was  thinking  about the  practical  impact. If  a                                                               
person has a  contract and needs a crane  operator, to apprentice                                                               
someone  they would  have  to  hire two  people  - the  certified                                                               
operator  and the  person who  is being  trained. So  becoming an                                                               
operator will not be easy or inexpensive.                                                                                       
                                                                                                                                
MR.   MITCHEL  replied   that   might  be   the   case  in   some                                                               
circumstances, but  it is hard  to imagine that some  business is                                                               
just going to automatically need a  crane and an operator "out of                                                               
the blue."  They will be in  the business, use them  on a regular                                                               
basis  and  have  operators  in   place.  Alaska  already  has  a                                                               
significant number of operators.                                                                                                
                                                                                                                                
CHAIR  PASKVAN remarked  that last  year's fiscal  note estimated                                                               
1,000  licenses per  year and  this year's  fiscal note  predicts                                                               
700. "What has changed?"                                                                                                        
                                                                                                                                
MR.  MITCHELL  replied  that  he didn't  know  exactly,  but  the                                                               
department  went through  more  evaluations this  year than  last                                                               
year on  developing the final  numbers for the fiscal  note; that                                                               
could have changed expectations.                                                                                                
                                                                                                                                
2:20:32 PM                                                                                                                    
CHAIR PASKVAN asked if it is more accurate this year.                                                                           
                                                                                                                                
MR. MITCHELL responded that the current fiscal note is accurate.                                                                
                                                                                                                                
2:20:58 PM                                                                                                                    
CHAIR  PASKVAN  asked  if  the  department  would  have  problems                                                               
implementing the requirements if this bill passed.                                                                              
                                                                                                                                
MR.  MITCHELL replied  that he  didn't  think they  would have  a                                                               
problem and implementing  the program would take six  months to a                                                               
year.                                                                                                                           
                                                                                                                                
2:21:58 PM                                                                                                                    
MR.  ANDREWS  referred back  to  Senator  Bunde's question  on  a                                                               
training program. Many cranes that  are operating in the 17.5 ton                                                               
classification have a  crane operator and probably  a crane oiler                                                               
as well.  The crane oiler  would be "an apprentice  operator." He                                                               
would maintain  the crane, make  sure it  is safe and  "look over                                                               
the shoulder"  of the operator.  That operator would  on occasion                                                               
when it is safe enough allow  the oiler to operate the crane. The                                                               
operator  then  looks  over  his  shoulder to  make  sure  he  is                                                               
operating safely.                                                                                                               
                                                                                                                                
CHAIR  PASKVAN  asked if  he  saw  this  licensing process  as  a                                                               
barrier to work in the field.                                                                                                   
                                                                                                                                
MR.  ANDREWS replied  no; employers  realize the  crane standards                                                               
were  written in  1971  and  have not  been  updated since  then.                                                               
American  National Standards  Institute  (ANSI) regulations  have                                                               
been  consistently updated  every  year or  every  other year  as                                                               
need.  So the  industry has  evolved and  the operators  that are                                                               
safe in  the industry are evolving  with; what has lagged  is the                                                               
OSHA  standard. So  to  say  that ANSI  standards  should be  the                                                               
standard  of the  industry should  not be  an encumbrance  to the                                                               
industry  -  and this  is  only  one  facet of  the  over-arching                                                               
standard to be presented in July.                                                                                               
                                                                                                                                
2:25:10 PM                                                                                                                    
CHAIR  PASKVAN wondered  if about  seven years  ago the  American                                                               
Society of  Mechanical Engineers  became the  body that  sets the                                                               
standard.                                                                                                                       
                                                                                                                                
MR. ANDREWS explained  that the 17.5 ton standard  comes from the                                                               
industry, and that  in 1994 the Specialized  Carriers and Riggers                                                               
Association  realized  a  huge number  of  crane  accidents  were                                                               
happening  with loss  of  life and  property.  So their  casualty                                                               
group  decided that  if they  were  going to  address craning  in                                                               
America,  similar to  what the  Canadians did  in Ontario  in the                                                               
70s,  that  they needed  to  get  their  arms around  the  issue.                                                               
Through  interviewing  national  crane houses  and  organizations                                                               
they decided  that under  17.5 tons  would be  one classification                                                               
and the NCCCO would be the organization qualified to set it.                                                                    
                                                                                                                                
2:27:28 PM                                                                                                                    
CHAIR PASKVAN asked  if the standard in SB 97  is consistent with                                                               
industry practices as he described.                                                                                             
                                                                                                                                
MR. ANDREWS answered yes.                                                                                                       
                                                                                                                                
CHAIR PASKVAN  asked if another crane  certification organization                                                               
exists.                                                                                                                         
                                                                                                                                
MR. ANDREWS  answered that the  Crane Institute of  America (that                                                               
has  come to  Alaska)  is the  only  other nationally  recognized                                                               
crane program that  he knows of. The owner has  made sure that he                                                               
meets the NCCCO qualification.                                                                                                  
                                                                                                                                
CHAIR  PASKVAN   asked  if  crane  operators   in  both  training                                                               
organizations are able to comply with this language.                                                                            
                                                                                                                                
MR. ANDREWS replied  that NCCCO only offers tests,  but the Crane                                                               
Institute of America will train  and test. So, NCCCO that doesn't                                                               
endorse any training becomes more like the federal standard.                                                                    
                                                                                                                                
2:29:10 PM                                                                                                                    
MR.  MITCHELL   said  one   other  organization   has  nationwide                                                               
accreditation  out  of  Southern California.  He  said  operating                                                               
cranes is a  growing area, and entities like  the Crane Institute                                                               
of  American  and the  NCCCO  are  providing approvals  to  local                                                               
training providers.  That is what  the Alaska  crane consultant's                                                               
business is  - an arm  of the Crane  Institute of America.   They                                                               
have  approved this  local business  in Alaska  to provide  their                                                               
curriculum.  He   expects  if   this  bill  passes,   that  other                                                               
businesses would develop in order to provide this training.                                                                     
                                                                                                                                
2:30:28 PM                                                                                                                    
SENATOR THOMAS  asked if the  exemption for electrical  line work                                                               
from 5 tons to 17.5 tons was the only exemption.                                                                                
                                                                                                                                
MR. MITCHELL replied  that this exemption is  for electrical line                                                               
work performed  by a licensed  electrician with a  certificate of                                                               
fitness as  a lineman  who is using  a crane that  is up  to 17.5                                                               
tons in capacity.  Once the crane goes over that  amount it would                                                               
require certification.  The 5  ton threshold  is the  standard in                                                               
the bill.                                                                                                                       
                                                                                                                                
2:31:48 PM                                                                                                                    
ROB PETERSON, District  Representative, Operating Engineers, said                                                               
he  also  serves  on  the  Alaska  Safety  Advisory  Council.  He                                                               
supported SB  97 saying  he had been  a heavy  equipment operator                                                               
and mechanic  in Alaska for 28  years. He supports this  bill for                                                               
several reasons,  but most importantly  because of the  safety of                                                               
the unsuspecting  trade workers,  equipment operators  and public                                                               
that work around cranes in the State of Alaska every day.                                                                       
                                                                                                                                
He  related that  in  2008 there  were 58  crane  deaths and  126                                                               
injuries reported, but there is  obviously a lot more. The causes                                                               
of construction  worker crane related incidents  in that 12-month                                                               
period by percentage  were 1. crane collapses,  2. overhead power                                                               
line contacts,  3. crane loads  and other crane parts  falling on                                                               
people, and 4. 23 percent other causes.                                                                                         
                                                                                                                                
In summary, the  U.S. had a total of 97  reported crane incidents                                                               
involving 57  deaths and  127 injuries. The  two states  with the                                                               
most incidents  are Florida and Texas,  and out of the  15 states                                                               
that  now  have  NCCCO  or   crane  licensing  certification  for                                                               
operators, those two states do not.                                                                                             
                                                                                                                                
2:34:38 PM                                                                                                                    
MR.  PETERSON said  from 1992-2006  there were  632 crane-related                                                               
deaths, an average  of 42 a year;  now it has gone up  to 70-75 a                                                               
year. In  that time there  were also 18 multiple  death incidents                                                               
involving a  total of  40 deaths. The  main causes  were overhead                                                               
power  line electrocutions  (157 deaths),  struck by  crane loads                                                               
(132 deaths), crane collapses (89  deaths), struck by crane parts                                                               
(78 deaths),  falls (56  deaths), struck  by falling  crane parts                                                               
(47  deaths), caught  in  between loads  (30  deaths), and  other                                                               
causes (43 deaths).                                                                                                             
                                                                                                                                
He said the  main types of cranes used in  Alaska in construction                                                               
are mobile cranes.  In that period of time 71  percent of all the                                                               
crane-related  incidents  involved   mobile  cranes.  With  these                                                               
mobile cranes, 84  percent were power line  incidents, 63 percent                                                               
were of crane  collapses, and 60 percent were  people being stuck                                                               
by parts  of the crane  coming down.  First causes in  Alaska are                                                               
mobile cranes tipping over and power lines.                                                                                     
                                                                                                                                
2:36:59 PM                                                                                                                    
MR. PETERSON said the main  cause of worker deaths from 1992-2006                                                               
by frequency  is electrocution at  157 deaths. However,  he said,                                                               
it's usually  not the operator  that gets killed, but  someone on                                                               
the ground when  the electricity passes through  the machine. One                                                               
hundred and  thirty-two workers  were struck  by crane  loads and                                                               
that  includes flaggers,  directors and  guides; 32  percent were                                                               
workers who weren't even involved  with the crane. From 1992-2006                                                               
there were 81  crane collapses and the death rate  from those was                                                               
89.                                                                                                                             
                                                                                                                                
He explained that back in 1982  someone could stand a crane up on                                                               
its outriggers  and "sort of  feel" if it  was going to  tip, but                                                               
now  in  2010 everything  is  designed  lighter. Load  charts  in                                                               
cranes today have  very few tipping points; most of  it has to do                                                               
with structural failure.  So, if you're picking a  heavy load and                                                               
go  above that  rate in  the load  chart, the  crane is  going to                                                               
collapse before it will tip over.                                                                                               
                                                                                                                                
One hundred and ninety-one construction  laborers died from 1992-                                                               
2006; heavy  equipment operators had 100  deaths, supervisors had                                                               
86  deaths, iron  workers had  42  deaths, and  mechanics had  41                                                               
deaths. Other trades had 171 deaths.                                                                                            
                                                                                                                                
MR. PERTERSON felt  that crane operators should  be certified for                                                               
their safety as  well as that of the general  public. He reasoned                                                               
that  you need  a license  to drive  a car  and to  be a  private                                                               
pilot, but  not to operate a  crane that could be  working around                                                               
50-60 at  a site. He  felt that  crane riggers and  signal people                                                               
should be adequately trained and  that crane inspectors should be                                                               
certified also.                                                                                                                 
                                                                                                                                
2:41:33 PM                                                                                                                    
SENATOR  BUNDE  said  his  data  was  from  states  that  require                                                               
certified operators, but  asked if he have data  from states that                                                               
don't  require that.  He didn't  want people  to think  that just                                                               
because this bill is passed there won't be any accidents.                                                                       
                                                                                                                                
MR.  PETERSON  responded that  was  true,  some things  can't  be                                                               
eliminated. The  only data he  has is  about the two  states that                                                               
don't  have   licensed  operators  that  have   the  two  highest                                                               
mortality and accident  rates in the United States  - those being                                                               
Florida and Texas.                                                                                                              
                                                                                                                                
2:43:09 PM                                                                                                                    
CHAIR   PASKVAN  asked   him   to  comment   on   the  17.5   ton                                                               
classification.                                                                                                                 
                                                                                                                                
MR. PETERSON said 17.5 tons is  a good compromise number and it's                                                               
fair.  It  has  been  proven  that  most  of  the  accidents  are                                                               
happening with the large cranes.                                                                                                
                                                                                                                                
SENATOR  MEYER  asked  if  the  cranes over  17.5  tons  are  all                                                               
commercial.                                                                                                                     
                                                                                                                                
MR. PETERSON answered yes; all cranes are commercial.                                                                           
                                                                                                                                
SENATOR MEYER  asked if you  can rent  a crane from  an equipment                                                               
rental place.                                                                                                                   
                                                                                                                                
MR. PETERSON  replied no; you can  rent a crane with  an operator                                                               
in Fairbanks.  But if the rental  company rented one to  you, and                                                               
you could get the insurance,  you probably could. He didn't think                                                               
they would be  rented to the general public like  a back hoe, for                                                               
instance.                                                                                                                       
                                                                                                                                
CHAIR PASKVAN closed public testimony.                                                                                          
                                                                                                                                
2:46:10 PM                                                                                                                    
SENATOR BUNDE suggested passing SB 97.                                                                                          
                                                                                                                                
SENATOR MEYER commented that he  didn't have any major objections                                                               
to it. He didn't hear any  opposition today, but he had seen some                                                               
in previous minutes.                                                                                                            
                                                                                                                                
2:47:34 PM                                                                                                                    
SENATOR THOMAS said he had no objection to moving it.                                                                           
                                                                                                                                
SENATOR BUNDE  said the  17.5 ton standard  took some  of Spenard                                                               
Builders' concerns away.                                                                                                        
                                                                                                                                
2:48:07 PM                                                                                                                    
PAULA  SCAVARA,  Legislative  Liaison, Department  of  Labor  and                                                               
Workforce  Development  (DOLWD),  said  that section  8  needs  a                                                               
technical amendment.  It says this  bill takes effect  January 1,                                                               
2010.                                                                                                                           
                                                                                                                                
CHAIR  PASKVAN  moved  conceptual   Amendment  1  to  change  the                                                               
effective date to  January 1, 2011. There were  no objections and                                                               
it was so ordered.                                                                                                              
                                                                                                                                
SENATOR MEYER moved  to report SB 97, version R,  as amended from                                                               
committee. There were  no objections and CSSB  97(L&C) moved from                                                               
committee.                                                                                                                      
                                                                                                                                
There being no further business to come before the committee,                                                                   
CHAIR PASKVAN adjourned the meeting at 2:49.                                                                                    

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