Legislature(1993 - 1994)
04/15/1994 09:05 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 376
An Act relating to fees charged by state agencies for
certain services and to reimbursement for expenses
incurred by the state in providing certain services;
and providing for an effective date.
Upon reconvening the meeting, Co-chair Frank directed that
SB 376 be brought on for discussion. CHERYL FRASCA, Office
of the Governor, came before committee. She explained that
SB 376 would implement "several fee changes to existing
law." She then commenced a sectional review:
Sec. 1. Allows the Dept. of Revenue to charge a fee for
alcohol- server awareness courses. Last year the
legislature passed legislation requiring
alcohol servers to complete an awareness
course.
Sec. 2. Provides the Dept. of Public Safety authority to
promulgate regulations and charge fees for permits
to those servicing portable fire extinguishers and
those who design, install and service fire alarm
systems. KENNETH LEA, Deputy Fire Marshal, Dept.
of Public Safety, came before committee in
response to questions from Co-chair Frank. He
explained that permitting was established at the
request of industry. An ad hoc committee
suggested collection of an associated fee. Mr.
Lea voiced need to maintain quality control over
both those who design and service fire systems.
During the transition period of June 10, 1993,
through June 10, 1996, anyone who is presently
doing this type of work in Alaska may obtain a
permit based on past experience. New people in
the trade will be required to demonstrate
proficiency by documenting past experience and
passing a nationally recognized engineering
technician certification test.
Further discussion followed regarding fees
associated with various permits as well as the
length of time for which the permit would be good.
Additional discussion ensued regarding the public
process associated with issue of regulations
establishing the proposed fees. Mr. Lea estimated
that fees would generate $29.2 for fire
extinguishers and $38.5 from fire alarm systems.
Cheryl Frasca directed attention to information
set forth on accompanying fiscal notes.
Co-chair Frank asked that Mr. Lea provide written
information on the interrelationship between the
permit for fire sprinkler systems and the
mechanical administrator permit.
Sec. 3. Allows the Dept. of Public Safety to charge a fee
for
for permits issued to those who use dangerous
fireworks displays. Approximately $3.0 is
expected to be generated in FY 96 as a result of
this fee.
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Co-chair Frank stressed need for language within the bill to
ensure that fees bear a strict relationship to costs of
administration of permit programs. Ms. Frasca noted a
similar provision relating to program receipts. Departments
are not to make a profit from program receipts that support
a program.
Sec. 4. Allows the Dept. of Public Safety to set in
regulations
the fee charged for retail fireworks permits. The
current statutory fee for those who sell fireworks
is $10.
Sec. 5. Allows the Dept. of Public Safety to set in
regulations the fee charged for wholesale fireworks
permits. The statutory fee is presently
$50. Co-chair Frank noted information
indicating that the proposal is for a
wholesale permit at $500 and a retail
permit at $100. He again stressed need
to ensure a strict relationship between
the cost of the permit program and the
fee paid. Taxing of an activity
represents separate policy.
Sec. 6. Allows the Dept. of Public Safety to increase fees
for
driver training school and instructor licenses.
The present fee is $25 for training schools. That
would increase to $100. Instructor licenses are
now $5. They would increase to $25.
Sec. 7. Allows the Dept. of Corrections to seek payment
for
medical care from third parties such as insurance
companies, the veterans administration, Indian
health services, or other federal agencies.
Sec. 8. Allows the Dept. of Environmental Conservation to
charge
for direct costs associated with pesticide
registration, subdivision plan review, bank loan
audits, analysis of water systems, and regulation
of motor vehicle fuels. Senator Sharp raised
concern regarding indirect costs. Ms. Frasca
explained that questioned language was contained
within a House version of the bill. KIT
BALLENTINE, Acting Director, Division of
Environmental Health, Dept. of Environmental
Conservation, concurred. She further advised of
discussion in House hearings regarding removal of
the indirect charge. Cheryl Frasca attested to
removal of such language from Senate versions of
the bill as well.
Senator Kelly directed attention to page 5, lines 8 and 9,
subsection (14), and asked how the department intends to
regulate motor vehicle fuels to control emissions. LEN
VERRELLI, Chief, Air Quality Management Section, Dept. of
Environmental Conservation, explained that activity relates
to compilation of information to exempt Alaska from low
sulfur fuel requirements. Senator Kelly voiced his
understanding that the proposed bill would allow the
department to establish a fee structure to capture
sufficient funds to conduct the project. Mr. Verrelli
concurred and noted the many interests in Alaska that would
be impacted by such a waiver. Application for the waiver
may only be made by the state. Co-chair Frank requested
additional written information on the project.
Discussion followed regarding analyses conducted by DEC
versus private labs. Senator Sharp voiced his understanding
that language within the bill prohibits DEC from conducting
analyses if certified private labs are able to do so. Mr.
Verrelli concurred. In response to further questions from
the Senator, Mr. Verrelli attested to problems resulting
from lack of certified labs within the state. Necessary
equipment involves great expense. That is how the state lab
got started. DEENA HENKINS, Chief, Drinking Water and Water
Treatment Section, Dept. of Environmental Conservation,
explained that certified laboratories must be available for
public water system analyses in order to maintain primacy
for state water programs. Private labs have thus been
certified to conduct that analysis. The state must continue
to do needed analyses in situations where the tests are too
expensive for private labs to undertake, and the holding
time on the sample is too short to allow for shipment to an
out-of-state lab.
Sec. 9. Is similar to an effective date clause. It allows
departments to commence work on regulations prior
to the actual effective date of the proposed bill.
Sec. 10. Provides an immediate effective date for Sec. 9.
Sec. 11. Provides a July 1, 1994, effective date.
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