04/14/2018 10:00 AM Senate FINANCE

HOUSE BILL NO. 121                                                                                                            
                                                                                                                                
     "An  Act relating  to  occupational  safety and  health                                                                    
     enforcement penalties;  and providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
10:28:29 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon reported that the  bill had been heard on                                                                    
April 11,  2018. She asked  Vice-Chair Bishop to  review the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop  discussed  the   fiscal  note  from  the                                                                    
Department of  Labor and  Workforce Development  (DLWD), OMB                                                                    
Component  Number  970.  The  note  reflected  a  change  in                                                                    
revenue of $230,200  in FY 19 and $460,400 in  FY 20 through                                                                    
FY 24. He  read from the second and third  paragraphs in the                                                                    
analysis on page 2:                                                                                                             
                                                                                                                                
     The  regulations resulting  from this  legislation will                                                                    
     initially  adjust maximum  and minimum  civil penalties                                                                    
     for  inflation  going back  to  1990,  and then  adjust                                                                    
     penalties  yearly  according  to changes  in  the  U.S.                                                                    
     Consumer Price Index for All Urban Consumers (CPI-U).                                                                    
                                                                                                                                
     It is anticipated that these  changes will result in an                                                                    
     additional $460.4  in revenue to the  general fund each                                                                    
     year. Given  the length of  time it takes  to implement                                                                    
     regulations  changes,   it  is  anticipated   that  the                                                                    
     revenue  increase  will  occur about  halfway  into  FY                                                                    
     2019.  Therefore, the  FY  2019  revenue increase  will                                                                    
     only be half of this amount.                                                                                               
                                                                                                                                
10:30:29 AM                                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon  asked the  bill  sponsor  and staff  to                                                                    
provide a brief bill overview.                                                                                                  
                                                                                                                                
REPRESENTATIVE SAM  KITO, SPONSOR, shared that  the bill had                                                                    
been  requested by  DLWD,  which would  bring  Alaska up  to                                                                    
federal  standards  for  the Alaska  Office  of  Safety  and                                                                    
Health. The bill  would allow the department  to change fees                                                                    
with  regulation to  keep  up with  a  consumer price  index                                                                    
(CPI) increase  expected from the  federal government  on an                                                                    
annual  basis and  would avoid  the  need to  return to  the                                                                    
legislature  annually to  adjust  the fees.  The bill  would                                                                    
theoretically  increase some  revenue,  but  there was  also                                                                    
significant flexibility,  so it was not  as though penalties                                                                    
would just  increase. He elaborated  that if  employers were                                                                    
complying there was  a negotiated process by  which the fees                                                                    
could be waived  or decreased in order to focus  on the goal                                                                    
of improving  worker safety in  Alaska. It was not  a matter                                                                    
of  being  punitive, but  of  trying  to  keep up  with  the                                                                    
federal  requirements; if  the state  did not  keep up  with                                                                    
federal requirements  it stood to lose  some federal funding                                                                    
and   potentially  the   ability   to   implement  its   own                                                                    
occupational safety and health office.                                                                                          
                                                                                                                                
10:32:08 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Bishop MOVED  to REPORT  HB  121 from  committee                                                                    
with  individual  recommendations  and  accompanying  fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  121 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN2 (LWF).                                                                                                         
                                                                                                                                
10:32:46 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:35:11 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon handed the gavel to Vice-Chair Bishop.