Legislature(2001 - 2002)
04/02/2002 03:40 PM Senate STA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ 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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