Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/03/2024 01:30 PM Senate LABOR & COMMERCE
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Audio | Topic |
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SB204 | |
SB44 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | SB 204 | TELECONFERENCED | |
+= | SB 44 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
SB 204-CERT. OF FITNESS: PLUMBERS/ELECTRICIANS 1:34:41 PM CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 204 "An Act relating to the issuance of certificates of fitness for plumbers and electricians; relating to fees for certificates of fitness for plumbers and electricians; and providing for an effective date." 1:35:15 PM KIM KOLVIG, Legislative Liaison, Department of Labor and Workforce Development (DOLWD), Juneau, Alaska, read a prepared summary of SB 204. [Original punctuation provided.] Hearing for HB 290 & SB 204 Certificate of Fitness (COF) Opening Remarks An act relating to the issuance of certificates of fitness for plumbers and electricians; relating to fees for certificates of fitness for plumbers and electricians; and providing for an effective date. Thank you, Chair Bjorkman and members of the committee. Legislation changes: • The legislation before you changes the trainee level certificates of fitness for plumbers and electricians from two years to six years. o Currently, if a trainee fails to renew their COF, those hours worked during that lapse will not be counted. o The training period is typically accomplished in 4 years. • Increases the fee for issuance of journeyman level certificates or renewal certificates from $200 to $300. o The journeyman two-year certificate cost has been in effect since 2006. o The fee increase will partially cover the loss in revenue created by the changes to the training level certificate. • The elimination of the requirement for trainees to apply for and pay for renewals during their training period will expedite the apprenticeship procedure overall. • And will avoid the difficult situation of having to reject training hours because a certificate of fitness is not valid. • With me today is the Chief of our Mechanical Inspection Unit, Mr. Scott Damerow, to give a presentation of the Certificate of Fitness (COF) process. 1:37:32 PM CHAIR BJORKMAN opened public testimony on SB 204; finding none, he closed public testimony. 1:38:03 PM SCOTT DAMEROW, Chief of Mechanical Inspection, Labor Standards and Safety, Department of Labor and Workforce Development (DOLWD), Anchorage, Alaska, said the fiscal notes primarily will result in a decrease of approximately $58,000 in revenue due to the non-renewal of Certificates [of Fitness] (COF) at the training level, based on a five-year survey. Assuming COF renewal continues at the expected rate, he said DOLWD would lose money and the COF program would be unsustainable. SB 204 includes an increase in fees that would make up for the past seventeen years with no increase in COF application fees and for the decrease in trainee licensing. It would also bring [the COF program budget] more in line with inflationary changes and allow normal business. He said the estimated revenue increase of $164,000 would result in $105,000 annual expenditure increase. The expenditures would be used for: increased travel throughout the state for enforcement staff. It would also be used for training education and memberships in national level organizations. He noted that Alaska is secluded from the rest of the U.S. both geographically and code-wise from the lower 48 states. He said more national organization membership and more training would equip [DOLWD certifying personnel] to be recognized industry experts in their areas. He also said the current software database was developed in the 1990's and is in desperate need of updating to increase the level of service to the community and to allow for on-line application, payments and on-line receipt of COFs. He said DOLWD would upgrade equipment and machinery and credit card processing to allow online payment processing. He said the state equipment fleet would receive a large percentage of the fund and explained that DOLWD had 14 vehicles, ten of which were more than ten years old. He said the staff were primarily field workers, spending most of their time in the vehicles. He emphasized the need to upgrade the fleet of vehicles to reduce the number of vehicle breakdowns. He also said funds would be spent to upgrade computers and monitors and infrastructure to support Information Technology (IT) for the Labor Standards and Safety Division. MR. DAMEROW concluded that the fiscal note was straightforward and mostly reflected a lack of infrastructure spending over the past seventeen years, during which there had been an increase in spending but not in fees. 1:41:41 PM SENATOR GRAY-JACKSON referred to the fiscal note from the Department of Labor and Workforce Development, OMB Component Number 346, dated February 29, 2024, noting that it called for one new car per year for the State Equipment Fleet. She asked how many cars the department needs and how they are used. 1:42:01 PM MR. DAMEROW answered that the department has 14 vehicles, one assigned to each of the current inspectors with some flexibility for their use. Due to the age of the fleet, the cars suffer significant breakdown, leading to setbacks in conducting field inspections. He said the department does not maintain an excess of vehicles, so when a vehicle is down, an inspector is not in the field. He explained that some of the vehicles are not road- worthy for longer trips, requiring inspectors to switch cars. He said he hoped to standardize the fleet by selecting a single, standard compact SUV, replacing one vehicle per year and allowing for parts and tires to be interchangeable among the vehicles. He noted that this would improve the efficiency of maintaining the fleet and reduce waste of otherwise usable parts and equipment. 1:43:31 PM SENATOR GRAY-JACKSON appreciated the clarification. 1:43:41 PM CHAIR BJORKMAN solicited the will of the committee. 1:43:46 PM SENATOR GRAY-JACKSON moved to report SB 204, work order 33- GS2370\A, from committee with individual recommendations and attached fiscal note(s). 1:44:05 PM CHAIR BJORKMAN found no objection and SB 204 was reported from the Senate Labor and Commerce Standing Committee.