Legislature(2017 - 2018)ADAMS ROOM 519

04/02/2018 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:55 pm --
+ HB 268 OPIOID PRESCRIPTION INFORMATION TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 221 WORKFORCE & ED RELATED STATISTICS PROGRAM TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 400 FEES FOR FIRE PREVENTION MEASURES TELECONFERENCED
Moved HB 400 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 400                                                                                                            
                                                                                                                                
     "An Act relating to the collection of fees by the                                                                          
     Department of Public Safety for fire and explosion                                                                         
     prevention and safety services."                                                                                           
                                                                                                                                
4:20:17 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  informed that  if  it was  the  will of  the                                                                  
members, it would pass HB 200 out of committee.                                                                                 
                                                                                                                                
REPRESENTATIVE  JONATHAN KREISS-TOMKINS,  SPONSOR,  introduced                                                                  
himself.                                                                                                                        
                                                                                                                                
CATHY  SCHLINGHEYDE, STAFF,  REPRESENTATIVE  JONATHAN  KREISS-                                                                  
TOMKINS, introduced herself.                                                                                                    
                                                                                                                                
Representative  Kreiss-Tompkins  indicated  the  bill was  one                                                                  
page  and  was  simple. There  had  been  a  statutory  change                                                                  
recommendation  in  a House  Finance  Subcommittee  under  the                                                                  
auspices  of   the  House  Community   and  Regional   Affairs                                                                  
Committee.   The  recommendation   would   try  to  help   the                                                                  
Department  of   Public  Safety  streamline  its   operations,                                                                  
operate  more  efficiently,   and  cut  down  on  Unrestricted                                                                  
General Fund  (UGF) spending. The  UGF would be replaced  with                                                                  
user fees  or Designated General  Funds (DGF). The  state Fire                                                                  
Marshal's  Office  had identified  the  opportunity,  and  the                                                                  
subcommittee    unanimously    agreed    the   idea    merited                                                                  
exploration.  The  bill had  passed  the House  State  Affairs                                                                  
committee in  four hearings,  after consideration of  multiple                                                                  
amendments that had not passed.                                                                                                 
                                                                                                                                
Representative Wilson read from page 2 of the fiscal note:                                                                      
                                                                                                                                
Fire Inspections  - $50 per hour with a one-hour minimum. DFLS                                                              
anticipates  the average  inspection  to take  two hours.  The                                                                  
goal  is  to  accomplish  1,500  inspections   per  year;  but                                                                  
currently  500  is  more   likely.  Considering  500  two-hour                                                                
inspections  per year at  $50 per hour,  the estimated  annual                                                                  
revenue would be $50,000.                                                                                                       
                                                                                                                                
Representative  Wilson asked what  happened to the  additional                                                                  
1,000 properties  that  would not receive  an inspection.  She                                                                  
wondered  if properties on  the road  system were more  likely                                                                  
to receive inspections.                                                                                                         
                                                                                                                                
Representative  Kreiss-Tompkins  deferred  to  the state  fire                                                                  
marshal.                                                                                                                        
                                                                                                                                
4:23:56 PM                                                                                                                    
                                                                                                                                
DAVID  TYLER, DIVISION  OF FIRE  AND LIFE  SAFETY,  DEPARTMENT                                                                  
OF PUBLIC  SAFETY, ANCHORAGE  (via teleconference),  explained                                                                  
that  the   $50  per   hour  charge   was  arrived  at   after                                                                  
considering  potential   outcomes.  He  discussed   inspection                                                                  
rates   and  size   of   properties.  He   acknowledged   that                                                                  
properties  on  the  road  system  received   inspection  more                                                                  
frequently  as  there was  easier  access.  Increased  funding                                                                  
would  allow  the inspectors  to  reach  more  communities  so                                                                  
that inspections would be more equitable across the state.                                                                      
                                                                                                                                
Representative  Wilson  asked  about  properties  not  on  the                                                                  
road system that needed inspection.                                                                                             
                                                                                                                                
Mr. Tyler  responded that the  properties not being  inspected                                                                  
and would not be charged a fee.                                                                                                 
                                                                                                                                
Representative  Wilson   asked  him  to  tell  her  about  the                                                                  
places that  were not currently  being inspected and  would be                                                                  
subject to a $50 per hour fee.                                                                                                  
                                                                                                                                
Mr.  Tyler replied  that hotels,  lodges,  and large  assembly                                                                  
areas  such as  auction houses  and  schools would  be in  the                                                                  
category.                                                                                                                       
                                                                                                                                
4:26:34 PM                                                                                                                    
                                                                                                                                
Representative  Wilson supported  the bill  but was  concerned                                                                  
with justifying  the charging  of fees.  She wondered  how the                                                                  
state  would keep up  with the  demand. She  thought it  would                                                                  
be difficult to justifying the fees.                                                                                            
                                                                                                                                
Mr.   Tyler  indicated   that  by   charging   the  fees   the                                                                  
department would  be better able  to reach the outlying  areas                                                                  
to  do  additional  inspections  and  hit the  goal  of  1,500                                                                  
structures per year.                                                                                                            
                                                                                                                                
Representative  Wilson  asked if  $50 per  hour would  provide                                                                  
enough money for the travel to outlying areas.                                                                                  
                                                                                                                                
Representative  Wilson  did not  want to  charge  more to  the                                                                  
communities  in rural area. She  discussed fees. She  asked if                                                                  
the  bill  was  governed by  square  footage  rather  than  by                                                                  
hour.                                                                                                                           
                                                                                                                                
Mr. Tyler  thought a flat rate  for square footage was  a much                                                                  
fairer way of billing for the service.                                                                                          
                                                                                                                                
4:29:30 PM                                                                                                                    
                                                                                                                                
Representative  Thompson  noted  that  the City  of  Fairbanks                                                                  
had its  own building department,  codes, and fire  department                                                                  
which   completed  inspections.   He  noted   that  the   fire                                                                  
department  certified   building  plans.  He   suggested  that                                                                  
there  were   private  companies   in  Fairbanks  that   could                                                                  
inspect  fire extinguishers  and  fire  extinguisher  systems.                                                                  
He asked  if the  state was  adding another  layer of  charges                                                                  
to cities that had existing codes and departments.                                                                              
                                                                                                                                
Mr.  Tyler  explained  that   the  City  of  Fairbanks  was  a                                                                  
deferred  jurisdiction and  did all  the work  itself; as  did                                                                  
the cities  of Juneau and Anchorage.  It was his goal  for any                                                                  
community (that  was able) to  do the inspection work  itself.                                                                  
He thought  a local community  could do  a much better  job of                                                                  
accomplishing   the  work.   He  relayed   that  the   private                                                                  
companies    that   did   the    inspections   mentioned    by                                                                  
Representative Thompson were certified by the division.                                                                         
                                                                                                                                
Representative  Kawasaki  asked  about  the ability  to  waive                                                                  
fees for non-profits such as churches.                                                                                          
                                                                                                                                
Mr. Tyler  believed bill  was worded so  that it was  possible                                                                  
to waive the fees.                                                                                                              
                                                                                                                                
Representative  Kawasaki  stated  that  the bill  would  allow                                                                  
the director the ability to waive the fees.                                                                                     
                                                                                                                                
4:33:16 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg did  not believe  the state  should                                                                  
simply  do inspections  because  it could  charge  for it.  He                                                                  
asked if  there was a statistical  analysis on prevention.  He                                                                  
mentioned non-conforming properties in rural Alaska.                                                                            
                                                                                                                                
Mr. Tyler  reported that from 2001  to 2007 there had  been 76                                                                  
uncontained  fires in  public schools  with  a total  monetary                                                                  
loss  in  excess of  $50  million.  Fires  in Hooper  Bay  and                                                                  
Talkeetna  schools had  resulted in  total losses.  In FY  08,                                                                  
the   division  had   requested   and  received   a   $105,000                                                                  
increment to  get the fire inspections  current. From  2008 to                                                                  
2012, there  was 47 uncontained  fires in school with  a total                                                                  
monetary  loss of  $1.4  million. Since  2012  there had  been                                                                  
staffing  issues  and a  reduction  in travel  funding.  Since                                                                  
2013  the total  fire  loss had  added up  to  $7 million.  He                                                                  
emphasized  that the  inspections  made a  difference  through                                                                  
education and elimination of hazards.                                                                                           
                                                                                                                                
Representative  Tilton  asked  about  the  permit  period  for                                                                  
fire  systems   technician  permits   and  fire   extinguisher                                                                  
technician   permits.    She   wondered   if    the   building                                                                  
inspections  only  required  in  an initial  inspection  or  a                                                                  
longer term.                                                                                                                    
                                                                                                                                
Mr.  Tyler  responded  that  the division's  goal  was  to  do                                                                  
inspections  every 2 years.  He elaborated  that the  industry                                                                  
standard was  to do inspections  every year but did  not think                                                                  
it was realistic for Alaska.                                                                                                    
                                                                                                                                
Representative  Tilton asked  how many  inspections were  done                                                                  
in the previous year.                                                                                                           
                                                                                                                                
Mr.  Tyler reported  that  the  division  had done  about  213                                                                  
inspections  the previous  year, but his  department had  been                                                                  
short  by 2  deputy fire  marshals.  He expected  to  complete                                                                  
close to 500 inspections in FY 18.                                                                                              
                                                                                                                                
Representative  Tilton  wondered   how  many  buildings  there                                                                  
were    that   needed    inspection,    not   including    new                                                                  
construction.                                                                                                                   
                                                                                                                                
Mr.  Tyler  estimated  there  was a  little  more  than  3,000                                                                  
structures  the   division  was  statutorily   responsible  to                                                                  
inspect.                                                                                                                        
                                                                                                                                
Representative Wilson asked if the regulations were new.                                                                        
                                                                                                                                
Mr.  Tyler  replied   that  the  statute  that   required  the                                                                  
inspections was existing.                                                                                                       
                                                                                                                                
4:37:42 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED Public Testimony.                                                                                        
                                                                                                                                
Co-Chair Foster CLOSED Public Testimony.                                                                                        
                                                                                                                                
Vice-Chair  Gara  read FN  1  from the  Department  of  Public                                                                  
Safety,   OMB   Component   number    3051.   The   note   was                                                                  
indeterminate.  It was  estimated  that the  bill would  raise                                                                  
about $84,000 of DGF through fees.                                                                                              
                                                                                                                                
Representative  Wilson  indicated  that  for  her it  was  not                                                                  
about the  fees; but rather  the amount  of money spent  after                                                                  
inspections  were not done, resulting  in fires and  damage to                                                                  
schools.  She   hoped  for  further  inspections   to  prevent                                                                  
fires.                                                                                                                          
                                                                                                                                
Co-Chair  Seaton  MOVED to  report  HB  400 out  of  Committee                                                                  
with individual  recommendations  and the accompanying  fiscal                                                                  
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB  400  was  REPORTED  out of  committee  with  a  "do  pass"                                                                  
recommendation    and    with   one    previously    published                                                                  
indeterminate fiscal note: FN1(DPS).                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
HB0221 Additional Document ACPE Short Q&A 03.23.2018.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB0221 Additional Document ACPE Wage Data Bullet Points 03.23.2018.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB0221 Sectional Analysis ver A 3.23.18.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB0221 Additional Document SLDS_infographic 03.23.2018.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB0221 Sponsor Statement 3.23.18.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB0221 Supporting Document ACPE Letter 3.23.2018.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB0221 Supporting Document NACTEC Testimony 3.23.2018.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB400 Sectional Analysis 3.20.18.pdf HFIN 4/2/2018 1:30:00 PM
HB 400
HB400 Sponsor Statement 3.20.18.pdf HFIN 4/2/2018 1:30:00 PM
HB 400
HB400 Supporting Document- DPS Letter of Support 3.20.18.pdf HFIN 4/2/2018 1:30:00 PM
HB 400
HB 268 PP HFIN 4.2.18.pdf HFIN 4/2/2018 1:30:00 PM
HB 268
HB268 Draft Proposed Blank CS ver E 4.2.18.pdf HFIN 4/2/2018 1:30:00 PM
HB 268
HB 221 APS Outcomes Report.pdf HFIN 4/2/2018 1:30:00 PM
HB 221
HB 268 CS vE Explanation of Changes (N-E).pdf HFIN 4/2/2018 1:30:00 PM
HB 268
HB 268 Support ALPHA Owen.pdf HFIN 4/2/2018 1:30:00 PM
HB 268