04/27/2004 09:02 AM Senate FIN

                                                                                                                                
     CS FOR SENATE BILL NO. 278(L&C)                                                                                            
     "An Act relating to fees for the inspection of recreational                                                                
     devices, including instructional devices, for certificates of                                                              
     fitness   for  electrical  wiring  and  plumbing,   for  filing                                                            
     voluntary flexible  work hour plan agreements, and for licenses                                                            
     for boiler operators;  relating to the building safety account;                                                            
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken commented  that this bill, which is sponsored by the                                                            
Senate Rules Committee  by Request of the Governor, would create two                                                            
new fees and increase  an existing fee charged by  the Department of                                                            
Labor  and  Workforce Development.   The adoption  of  Amendment  #1                                                            
during the bill's  initial hearing changed a fiscal  component, and,                                                            
as a result, a  new fiscal note has been provided  to the Committee.                                                            
The Version 23-GS2111\D  committee substitute, amended  by Amendment                                                            
#1, is before the Committee.                                                                                                    
                                                                                                                                
GREY  MITCHELL, Director,  Division  of  Labor Standards  &  Safety,                                                            
Department  of Labor and  Workforce Development  explained  that the                                                            
adoption of Amendment #1  deleted a proposed $100 flexible work plan                                                            
filing fee that would have  generated $24,000 in revenue. Therefore,                                                            
a new zero fiscal note,  dated April 26, 2004 from the Wage and Hour                                                            
Section of  the Division of Labor  Standards and Safety,  Department                                                            
of Labor and Workforce  Development, replaces the  fiscal note dated                                                            
April  15,  2004. He  noted  that  the new  fiscal  note's  analysis                                                            
provides the breakout of  the expenses associated with administering                                                            
the flexible work plan program.                                                                                                 
                                                                                                                                
Senator  Bunde  acknowledged  the information,  but  questioned  the                                                            
reason for  performing the "perfunctory  review" of the program,  as                                                            
it incurs an expense to the State.                                                                                              
                                                                                                                                
Co-Chair Green  commented that this  concern could be addressed  via                                                            
the Missions and Measures review process.                                                                                       
                                                                                                                                
Amendment  #2: This amendment  inserts the  following language  into                                                            
Section 1, subsection (b)  following the word "devise." on page one,                                                            
line nine.                                                                                                                      
                                                                                                                                
     The department  shall waive the inspection fee  if the owner or                                                            
     operator  of  the  device  uses  a  private  inspector  who  is                                                            
     certified  by a national organization  to inspect recreational                                                             
     devices and  provides the inspection report to  the department.                                                            
                                                                                                                                
Co-Chair Wilken moved and  objected to the adoption of Amendment #2.                                                            
This amendment  is the result of recent  action taken in  regards to                                                            
this bill's  companion bill,  HB 402-LABOR  & WORKFORCE DEVELOPMENT                                                             
FEES.                                                                                                                           
                                                                                                                                
GREG  O'CLARAY,  Commissioner,  Department  of Labor  and  Workforce                                                            
Development  explained that  the proposed  language in Amendment  #2                                                            
would address  a recreational industry  concern that arose  during a                                                            
House committee  hearing on the companion bill in  that a nationally                                                            
certified out-of-state  inspector was utilized, at great expense, to                                                            
inspect  recreational  equipment.  He  stated  that  the  Department                                                            
supports the amendment  and that, absent its adoption, a duplication                                                            
of payment might result.                                                                                                        
                                                                                                                                
Co-Chair Wilken removed his objection.                                                                                          
                                                                                                                                
Co-Chair  Green  asked  for confirmation  that  Amendment  #2  would                                                            
provide this exemption specifically to recreational equipment.                                                                  
                                                                                                                                
Commissioner O'Claray replied, "that is correct."                                                                               
                                                                                                                                
Senator Olson asked for  assurance that the national standards would                                                            
equal or exceed the State standard.                                                                                             
                                                                                                                                
Commissioner   O'Claray  understood  that  the  same   company  that                                                            
certifies  State  inspectors  certifies  the  national recreational                                                             
inspectors.                                                                                                                     
                                                                                                                                
In response to a question  from Senator Hoffman, Mr. Mitchell stated                                                            
that the business,  Golden Wheels Amusement Company,  which operates                                                            
amusement  rides  at fairs,  presented  this  concern.  The  Company                                                            
annually  hires a  national  certified  inspector to  inspect  their                                                            
rides.  These national  inspectors must  undergo  a higher level  of                                                            
training than  required of State inspectors. While  State inspectors                                                            
would accompany  the national inspector,  no fee would be  levied by                                                            
the  State  in that  regard,  as  the  private  inspector  would  be                                                            
charging an inspection fee.                                                                                                     
                                                                                                                                
There being no further objection, Amendment #2 was ADOPTED.                                                                     
                                                                                                                                
Co-Chair Green moved to  report the bill, as amended, from Committee                                                            
with individual recommendations and accompanying fiscal notes.                                                                  
                                                                                                                                
There  being  no  objection,  CS SB  278  (FIN)  was  REPORTED  from                                                            
Committee with  new zero fiscal note, dated April  26, 2004 from the                                                            
Wage  and Hour  Section, Division  of  Labor Standards  and  Safety,                                                            
Department  of Labor and  Workforce Development  and a new  $142,000                                                            
fiscal note,  dated April  26, 2004 from  the Mechanical  Inspection                                                            
Section,  Division  of Labor  Standards  and Safety,  Department  of                                                            
Labor and Workforce Development.