Legislature(1999 - 2000)

04/21/1999 03:21 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                                                                                
SB 50 am - BOILER AND PRESSURE VESSEL INSPECTIONS                                                                               
                                                                                                                                
Number 1470                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG announced the committee's next order of business                                                              
is SB 50 am, "An Act relating to certain boiler and pressure vessel                                                             
inspections and inspectors; and providing for an effective date."                                                               
He invited Mr. Perkins forward.                                                                                                 
                                                                                                                                
Number 1490                                                                                                                     
                                                                                                                                
DWIGHT PERKINS, Deputy Commissioner, Department of Labor, came                                                                  
forward to testify in support of SB 50 am.  The department is                                                                   
currently severely backlogged with inspections of boilers and                                                                   
pressure vessels.  Mr. Perkins indicated more than half of the                                                                  
6,000-plus vessels overdue for inspection are of the type that                                                                  
would be affected by this legislation.  SB 50 am would allow the                                                                
commissioner of the Department of Labor to identify certain                                                                     
existing state personnel - plumbing inspectors - and qualify them                                                               
to perform these particular inspections with some minimum training.                                                             
The newly-trained inspectors would be required to take an                                                                       
examination and be passed off per the director of the Division of                                                               
Labor Standards and Safety's oversight.  Mr. Perkins indicated                                                                  
these personnel would be different from inspectors certified by the                                                             
National Board of Boiler and Pressure Vessel Inspectors (NBBI).  He                                                             
noted the department is trying to reduce its backlog on these                                                                   
smaller-type boilers that need to be routinely checked.  Mr.                                                                    
Perkins further indicated the legislation would result in                                                                       
approximately 40,000 new general fund dollars to the state because                                                              
the department charges fees for this service, thus the positive                                                                 
fiscal note.  It would also free up the department's NBBI-approved                                                              
inspector to perform the inspections needed on the larger-type                                                                  
boilers and pressure vessels.  Mr. Perkins emphasized the                                                                       
department would be using existing personnel, this would help                                                                   
reduce the department's backlog and help it service its clients,                                                                
and would bring new revenue to the general fund.                                                                                
                                                                                                                                
Number 1596                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked the difference between an exam                                                                   
approved by the director [of the Division of Labor Standards and                                                                
Safety] for these "lightweight" inspections versus the examination                                                              
described in AS 18.60.290.                                                                                                      
                                                                                                                                
MR. PERKINS replied the examination the department would be                                                                     
administering would only be a portion of the national board                                                                     
examination.  Mr. Perkins commented in past the department has sent                                                             
boiler inspectors outside the state for training, at a large                                                                    
expense to the state.  However, he indicated the department has not                                                             
been able to keep these board-certified individuals once they                                                                   
return because of the higher pay available in the private sector,                                                               
both inside and outside the state.  He indicated this legislation                                                               
would allow the administering of only a portion of the NBBI test,                                                               
scoped to apply to the small pressure vessels.  Mr. Perkins noted                                                               
the department's existing employees are qualified to look at these                                                              
[vessels] and have worked with the tools; they are plumbing                                                                     
inspectors who have been around for many years and know the                                                                     
systems.  He indicated the inspections they are speaking of would                                                               
be, for example, making sure the pressure relief valve  - the                                                                   
low-water cut-off that could send off an alarm or shutdown - is                                                                 
working properly in a six-plex apartment building.  They are not                                                                
speaking of the large, industrial-type [vessels].                                                                               
                                                                                                                                
REPRESENTATIVE MURKOWSKI asked if there would then be an expense to                                                             
the department to administer this reduced portion of the exam to                                                                
these plumbers.                                                                                                                 
                                                                                                                                
MR. PERKINS thinks it is a negligible cost; the department does not                                                             
see any kind of fiscal impact for that.                                                                                         
                                                                                                                                
Number 1708                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG questioned why building officials in other                                                                    
jurisdictions cannot be used for this purpose, if the jurisdictions                                                             
already have a building safety official and inspector.                                                                          
                                                                                                                                
MR. PERKINS indicated he and the chairman have discussed this                                                                   
subject once previously.  Mr. Perkins understands that it has to do                                                             
with the population base per the national code.  Alaska does not                                                                
have the 1 million population base.  It is Mr. Perkins'                                                                         
understanding the state cannot give its jurisdiction out to other                                                               
entities - that the state has to oversee this.                                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG asked Mr. Perkins, then, to explain the                                                                       
legislation currently in the committee, euphemistically known as                                                                
"potty parity" [SB 8], which changes the Uniform Plumbing Code                                                                  
["National Plumbing Code"] to acquire more fixtures, therefore                                                                  
deviating from the code.  The chairman questioned why the                                                                       
population specifications of the plumbing code could not be changed                                                             
to accommodate lower-population jurisdictions.                                                                                  
                                                                                                                                
MR. PERKINS deferred the question to Al Dwyer of Labor Standards                                                                
and Safety.                                                                                                                     
                                                                                                                                
Number 1779                                                                                                                     
                                                                                                                                
AL DWYER, Director, Division of Labor Standards and Safety,                                                                     
Department of Labor, came forward.  Mr. Dwyer stated the 1 million                                                              
population requirement is a national board requirement [National                                                                
Board of Boiler and Pressure Vessel Inspectors].  It could be                                                                   
delegated to any municipality willing to take the responsibility.                                                               
The statute would have to be changed.  Mr. Dwyer indicated that                                                                 
presently the state can delegate to NBBI-certified insurance                                                                    
company personnel, and NBBI-certified personnel employed by                                                                     
"owner-user companies" like oil companies which can afford to hire                                                              
national board-certified people.  Mr. Dwyer indicated these                                                                     
inspections are delegated out but the department retains control.                                                               
Copies of the inspection reports, frequency of inspection,                                                                      
organizational charts, et cetera, are sent to the department so                                                                 
that the department knows the inspector has authority to enforce                                                                
the code [American Society of Mechanical Engineers (ASME) Boiler                                                                
and Pressure Vessel Code].  The legislature could add                                                                           
municipalities to that, but Mr. Dwyer thinks there would have to be                                                             
some discussion as to what  the department's role would be in that                                                              
situation.  Mr. Dwyer indicated the department's chief inspector,                                                               
a national board-certified individual, would have to have some                                                                  
control over the activities and scheduling of boilers and pressure                                                              
vessels.                                                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG questioned why a board-certified local inspector                                                              
with the proper credentials couldn't do the inspections on the                                                                  
residential-type or small commercial boilers.                                                                                   
                                                                                                                                
MR. DWYER confirmed the chairman is referring to someone who has                                                                
passed the national board test but who is not working for the                                                                   
state, an insurance company, or an "owner-user."  Mr. Dwyer stated                                                              
it would not matter whether the individual is national                                                                          
board-certified; the national board would not recognize the                                                                     
inspections done by municipalities unless they had a population                                                                 
over 1 million.  Therefore, it would be a moot question.  Mr. Dwyer                                                             
indicated the department could probably require the municipalities                                                              
to employ a national board-certified inspector if the department                                                                
would delegate that out.                                                                                                        
                                                                                                                                
Number 1882                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG asked, "But the national board wouldn't accept                                                                
the inspection, ... and it then creates an insurance problem, is                                                                
that the issue here or what?"                                                                                                   
                                                                                                                                
MR. DWYER answered he thinks it might, but he can't say for sure.                                                               
The insurance companies have a vested interest in these boilers and                                                             
they generally inspect their own boilers with certified people.                                                                 
Mr. Dwyer indicated he thinks the problem the state has is making                                                               
sure that the inspections are done.  He noted they have delegated                                                               
out elevator inspections, for instance, to the Municipality of                                                                  
Anchorage.  The municipality has a competent elevator inspector who                                                             
reports to the department on a quarterly basis.  The department                                                                 
does not have any  control over what this inspector does or how he                                                              
does it; the way the delegation is, the department simply receives                                                              
a report which notes the inspector has inspected certain elevators.                                                             
Mr. Dwyer questioned whether the legislature wished to do this with                                                             
boilers.                                                                                                                        
                                                                                                                                
CHAIRMAN ROKEBERG asked how many of the 6,000 uninspected boilers                                                               
are in the Anchorage area.                                                                                                      
                                                                                                                                
MR. DWYER replied probably a very small number.  Most of                                                                        
uninspected ones are the ones that are remote.  He added, "And that                                                             
keeps changing as we do the (indisc.)..."                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG interjected, "And if we had the Anchorage boilers                                                             
inspected by the Anchorage building department, then your state guy                                                             
could go out and do the remote ones, or am I wrong?"                                                                            
                                                                                                                                
MR. DWYER replied the chairman is absolutely correct.                                                                           
                                                                                                                                
CHAIRMAN ROKEBERG noted he had asked this before, and was under the                                                             
impression that it was because the insurance underwriters would not                                                             
accept a non-board-certified inspector who wasn't authorized by the                                                             
state.                                                                                                                          
                                                                                                                                
Number 1954                                                                                                                     
                                                                                                                                
MR. DWYER responded that had been his impression - that the                                                                     
insurance company would not like this.  However, Mr. Dwyer said he                                                              
could be incorrect on that.                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG questioned whether Mr. Dwyer had checked on that,                                                             
noting the chairman had inquired about doing that, and that is the                                                              
reason the legislation is before the committee.  The chairman                                                                   
commented he will return the legislation to the Senate if                                                                       
necessary.  He noted they are trying to solve the problem here.                                                                 
One way to do it would be to have board-certified personnel in the                                                              
local jurisdictions [perform the inspections], if the provisions                                                                
existed in the statute giving them the right to do that under the                                                               
department's purview so it is done properly.  This would lower the                                                              
department's manpower requirement and allow the local governments                                                               
to do this work.  The chairman indicated the local governments                                                                  
would presumably be more timely and, therefore, because this is a                                                               
safety issue, it would be a safer circumstance.  The chairman                                                                   
questioned if the department did not want to give up any authority,                                                             
power, or something, expressing his incomprehension.  In response                                                               
to Mr. Dwyer's comment as to whether that was a question, the                                                                   
chairman asked, "Does the department not want to give up any power                                                              
or why couldn't we - why can't we (indisc.)..?"                                                                                 
                                                                                                                                
MR. DWYER spoke over, "(Indisc.) that's not an issue with us, Mr.                                                               
Chairman.  It's up to the legislature to change the statute if they                                                             
want to delegate this activity to municipalities."  Mr. Dwyer                                                                   
indicated the department would have to research the impact of that                                                              
with the insurance companies.  He added that perhaps the                                                                        
Municipality of Anchorage would not want to accept that liability                                                               
- he has not spoken with anyone from the Municipality.                                                                          
                                                                                                                                
CHAIRMAN ROKEBERG asked, "On that point, are there -- is the                                                                    
liability created by the inspection and would the building                                                                      
department have the liability when they inspect it?  I think that's                                                             
the case, right?"                                                                                                               
                                                                                                                                
MR. DWYER answered it is a good question; he thinks it might be the                                                             
case.                                                                                                                           
                                                                                                                                
CHAIRMAN ROKEBERG indicated there is case law showing that building                                                             
departments have liability if they fail, or by omission don't                                                                   
inspect correctly.  He asked if that was not correct.                                                                           
                                                                                                                                
MR. DWYER answered it is his understanding, stating, "If you should                                                             
have caught it and didn't (indisc.) liable."                                                                                    
                                                                                                                                
CHAIRMAN ROKEBERG commented there is a lot of case law on that.  He                                                             
expressed his disappointment, noting he thought that had been                                                                   
clear, and Mr. Dwyer is answering a little differently than he (the                                                             
chairman) had thought.  The chairman  indicated it has been his                                                                 
desire to try to farm some of this out to basically increase the                                                                
number of inspectors on the job without any fiscal impact.  He                                                                  
noted there are several building departments in the larger                                                                      
population centers of the state that presumably have people who                                                                 
would or could become board-certified and who would be able to do                                                               
these things.                                                                                                                   
                                                                                                                                
Number 2060                                                                                                                     
                                                                                                                                
MR. DWYER commented it is probably not necessary that they be                                                                   
board-certified if they don't look at "the real serious                                                                         
high-pressure boilers in large buildings."  He indicated                                                                        
non-board-certified inspectors could inspect the smaller boilers in                                                             
six-plexes and things of that sort.  Therefore, there are different                                                             
levels of delegation that could be considered - there are any                                                                   
number of ways to approach this.                                                                                                
                                                                                                                                
CHAIRMAN ROKEBERG said, "Well, next time I have questions about                                                                 
plumbing bills, I'll bring you over here first before we - and put                                                              
you on the record before we ask more questions, because that's                                                                  
fundamentally what I've been seeking from the department is some                                                                
answers along those lines.  And I got responses in the negative                                                                 
before, and now I'm getting them more in the positive, so I don't                                                               
understand what's going on."                                                                                                    
                                                                                                                                
MR. DWYER stated, "I'm sorry for misleading you, Mr. Chairman, but                                                              
it was my understanding at that time that the insurance companies                                                               
would not favor that, and that there'd be a liability situation.                                                                
I've been told that there're other cities in the country where the                                                              
state has authority to inspect boilers - that certain cities under                                                              
the population of 1 million are inspecting them.  And it's just                                                                 
that they're not national board-certified; they're not recognized                                                               
by the national board."                                                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG noted, "(Indisc.) type inspectors in Section -                                                                
the first section (indisc.).  I mean, wouldn't that be a feasible                                                               
method if we would grant that authority to the -- (indisc.) it                                                                  
looks like the title is loose enough."                                                                                          
                                                                                                                                
MR. DWYER agreed; he thinks that would be a way to do it.                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG asked if Mr. Dwyer had made inquiries of any of                                                               
the building departments around the state, if they would be                                                                     
interested.                                                                                                                     
                                                                                                                                
MR. DWYER replied his last instructions were to provide a list of                                                               
all the building officials to the deputy commissioner, which he                                                                 
did, and Mr. Dwyer thought that list would be provided to the                                                                   
chairman.                                                                                                                       
                                                                                                                                
CHAIRMAN ROKEBERG indicated that was regarding SB 8.  The chairman                                                              
noted the existence of plenty of code problems this year.  He                                                                   
informed the committee it has been the legislature's goal, by                                                                   
statute, to remove all building code statutory reauthorizations and                                                             
grant them to the department.  This allows the department to handle                                                             
the adoption of the periodic changes in the building codes by                                                                   
regulation, so the politics can be removed.  However, the chairman                                                              
noted that apparently the Senate has not received the word on that                                                              
yet.                                                                                                                            
                                                                                                                                
Number 2173                                                                                                                     
                                                                                                                                
MR. PERKINS commented that, to the chairman's credit, he is                                                                     
absolutely correct and the department has appreciated this in the                                                               
last few years.  It has certainly made everyone's job and life a                                                                
little bit easier when it has been time to renew codes.                                                                         
                                                                                                                                
CHAIRMAN ROKEBERG questioned, "Wouldn't (indisc.) this make it                                                                  
easier?  I mean, I've been talking to the department for several                                                                
months about this bill and asked it if you could add a provision                                                                
that would allow local inspection.  Wouldn't that save you money                                                                
and save the state money and increase public safety, if it was                                                                  
administered correctly? ... If the program was designed right? I                                                                
mean, is that possible or am I off-base here?"                                                                                  
                                                                                                                                
MR. DWYER responded he would have to research that.  He noted it                                                                
sounds like a very possible thing to do.  He noted, "It would be a                                                              
question of delegating that to the municipalities..."                                                                           
                                                                                                                                
Number 2213                                                                                                                     
                                                                                                                                
CHAIRMAN ROKEBERG interjected a course of action.  He noted the                                                                 
legislation would be held over and suggested that Mr. Dwyer call                                                                
the chief building officials in Anchorage, Juneau and Fairbanks to                                                              
find out if they have any qualified people and if they're                                                                       
interested in taking this on.  The chairman noted the committee                                                                 
would then take the legislation up again and Mr. Dwyer could answer                                                             
that in front of the committee.                                                                                                 
                                                                                                                                
MR. DWYER indicated his agreement with the idea and directive.                                                                  
                                                                                                                                
CHAIRMAN ROKEBERG questioned whether anyone else wished to testify                                                              
on SB 50 am.  There being no one, SB 50 am was held over.                                                                       

Document Name Date/Time Subjects