Legislature(2017 - 2018)SENATE FINANCE 532

04/17/2018 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 38 WORKERS' COMP: DEATH;PERM PARTIAL IMPAIR TELECONFERENCED
Heard & Held
+ HB 400 FEES FOR FIRE PREVENTION MEASURES TELECONFERENCED
Heard & Held
+ 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."                                                                                           
                                                                                                                                
10:37:18 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  informed that the committee  was hearing                                                                    
the bill for the first time.                                                                                                    
                                                                                                                                
CATHY SCHLINGHEYDE, STAFF  TO REPRESENTATIVE KREISS-TOMKINS,                                                                    
informed   that   the   bill    arose   from   a   statutory                                                                    
recommendation  of the  House  Finance  Subcommittee on  the                                                                    
Department of Public  Safety, and was introduced  as a House                                                                    
State  Affairs Committee  bill.  The bill  tried to  address                                                                    
concerns  in  the  Division of  Fire  Safety  pertaining  to                                                                    
building  inspections.  The  goal  of the  division  was  to                                                                    
inspect  all buildings  every two  years, however  buildings                                                                    
off the road system were being  inspected every 3 to 5 years                                                                    
due  to insufficient  travel funding.  The bill  would allow                                                                    
the division  to collect fees  for the spectrum  of services                                                                    
it  provided in  order to  help fund  travel. Currently  the                                                                    
division could  collect fees for  building plan  checks, but                                                                    
not for building inspections  or permitting for installation                                                                    
of fire suppression systems.                                                                                                    
                                                                                                                                
Ms.  Schlingheyde referenced  Section 1  of the  bill, which                                                                    
gave authority  to collect  the fees, and  Section 2  set up                                                                    
the receipt authority to receive the funds.                                                                                     
                                                                                                                                
Co-Chair  MacKinnon asked  about the  frequency of  building                                                                    
inspections.                                                                                                                    
                                                                                                                                
Ms. Schlingheyde relayed  that the goal of  the division was                                                                    
to inspect buildings every two years.                                                                                           
                                                                                                                                
Co-Chair  MacKinnon asked  if  there was  a  list of  needed                                                                    
improvements  created   at  the  time  of   inspection.  She                                                                    
considered that  building inspections every two  years could                                                                    
be  burdensome.  She asked  how  building  owners were  held                                                                    
accountable after buildings were inspected.                                                                                     
                                                                                                                                
DAVID  TYLER,  FIRE  MARSHAL,  DIVISION  OF  FIRE  AND  LIFE                                                                    
SAFETY, DEPARTMENT  OF PUBLIC SAFETY, stated  that there was                                                                    
accountability for  building owners,  but not to  the degree                                                                    
desired  by  the  division.   He  discussed  the  inspection                                                                    
process, which included  a notice to correct  and a timeline                                                                    
if  any deficiencies  were found.  He stated  that the  only                                                                    
more severe  actions available were a  misdemeanor charge or                                                                    
closing the building  down. He stated that  it was difficult                                                                    
to  get   to  remote  areas  for   inspections,  and  second                                                                    
inspections were even more difficult.                                                                                           
                                                                                                                                
Mr. Tyler relayed that the  division was trying to find more                                                                    
efficient ways to  verify that follow-up work  had been done                                                                    
without having  to physically  go to  the building  site. He                                                                    
stated that  the division's goal  was 1,500  inspections per                                                                    
year,  and the  division was  responsible for  approximately                                                                    
3,000  buildings. He  thought  the  division could  complete                                                                    
inspections  for  500  buildings   in  2018  due  to  travel                                                                    
restrictions.  In some  cases,  buildings had  gone  6 to  8                                                                    
years  without  being  inspected,   because  of  the  remote                                                                    
location.                                                                                                                       
                                                                                                                                
10:41:53 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon asked about the order to correct.                                                                            
                                                                                                                                
Vice-Chair  Bishop  observed  that  the  insurance  industry                                                                    
should be concerned if inspections  were not being completed                                                                    
in a timely manner. He discussed liability.                                                                                     
                                                                                                                                
Mr. Tyler wished there was  more interest from the insurance                                                                    
industry.                                                                                                                       
                                                                                                                                
Co-Chair  Hoffman  asked  why   rural  facilities  were  not                                                                    
inspected.  He  wondered  if the  division  had  a  rotating                                                                    
schedule for inspections based on  the area of the state. He                                                                    
discussed equity. He thought the  disparity should have been                                                                    
addressed already.                                                                                                              
                                                                                                                                
Mr.  Tyler asserted  that the  disparity had  been addressed                                                                    
and recounted  that between  2001 and  2007, there  had been                                                                    
over  $50  million  worth  of loss  in  public  schools.  He                                                                    
referenced a fire  in Hooper Bay, which  was preventable and                                                                    
started from  kids played under  the school. He  recalled 76                                                                    
fires  during the  time period.  In 2008,  the division  had                                                                    
received  an increment  to  help with  travel  and had  full                                                                    
staffing.  Over the  following five  years,  there had  been                                                                    
$1.4  million   worth  of  loss.  Subsequently   there  were                                                                    
vacancies and  staffing issues, as  well as travel  cuts. He                                                                    
stated that  there was currently  up to over $2  million per                                                                    
year  in  fire  loss.   He  wanted  additional  funding.  He                                                                    
recalled that  the division had accomplished  1,300 to 1,400                                                                    
inspections  per year  in its  most  successful period;  and                                                                    
numbers indicated the work was successful preventing fires.                                                                     
                                                                                                                                
10:45:42 AM                                                                                                                   
                                                                                                                                
Senator Olson  commented on  the serious  nature of  fire in                                                                    
rural Alaska,  where there was not  sufficient fire-fighting                                                                    
capacity. He  referenced financial losses, and  a large fire                                                                    
in Hooper  Bay. He discussed a  fire in Nome at  the Polaris                                                                    
Hotel, in which there was loss  of life. He wondered how the                                                                    
event could have been prevented.                                                                                                
                                                                                                                                
Mr.  Tyler stated  that the  division could  have done  more                                                                    
follow up inspection.  The division had known  that the fire                                                                    
alarm in  the hotel  was not  functioning. The  division had                                                                    
issued an  immediate order to  correct and had  been assured                                                                    
that the matter  had been corrected by  the building owners.                                                                    
The matter  had not been corrected,  but he was not  able to                                                                    
go  into  further  detail. The  division  was  taking  legal                                                                    
action  on the  matter and  the  case was  currently in  the                                                                    
office of special prosecution.                                                                                                  
                                                                                                                                
Senator Olson  commented that  the issue  brought up  by Mr.                                                                    
Tyler  was very  concerning. He  referenced an  amendment he                                                                    
had  offered  to  the  operating  budget,  related  to  fire                                                                    
prevention. The amendment had been  defeated. He thought the                                                                    
legislature  was obligated  to  look at  the possibility  of                                                                    
increasing the amount of funding  for inspections to curtail                                                                    
the loss  of life  and public facilities  that would  end up                                                                    
being paid for by the state.                                                                                                    
                                                                                                                                
10:47:56 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
Vice-Chair Bishop asked if there  were any independent third                                                                    
parties  that   completed  the   same  inspections   as  the                                                                    
division, that would be acceptable to the division.                                                                             
                                                                                                                                
Mr.  Tyler  informed  that there  were  companies  that  did                                                                    
inspection work  and maintenance  on fire alarm  systems and                                                                    
fire  suppression   systems.  The  division   permitted  and                                                                    
licensed  the  contractors  and  checked  the  work  of  the                                                                    
contractors.                                                                                                                    
                                                                                                                                
Co-Chair Hoffman referenced  the Nome fire, and  asked if it                                                                    
would have  been possible to use  the fire chief in  Nome to                                                                    
ascertain  whether the  correction order  had been  followed                                                                    
and completed.                                                                                                                  
                                                                                                                                
Mr. Tyler stated that the  division was working on a process                                                                    
to  work with  the local  fire authorities.  The new  system                                                                    
would allow the  division to use an outside  company to work                                                                    
with  vendors  to  do fire  inspections.  The  system  would                                                                    
provide  for immediate  information on  compliance, with  no                                                                    
charge to the state or local communities.                                                                                       
                                                                                                                                
10:50:29 AM                                                                                                                   
                                                                                                                                
Senator   Micciche  asked   if  Mr.   Tyler  could   provide                                                                    
information on  the role of local  fire personnel, insurance                                                                    
inspectors,  fire marshals,  and gaps  he envisioned  in the                                                                    
system.  He thought  it would  be helpful  to have  a longer                                                                    
discussion.                                                                                                                     
                                                                                                                                
Mr. Tyler stated that there  was a deferral program for when                                                                    
communities    could   complete    inspections   and    fire                                                                    
investigations. He listed  communities (including Ketchikan,                                                                    
Juneau,  Anchorage, Fairbanks)  that were  participating. He                                                                    
believed local government could do  the work better than the                                                                    
state could,  and the  state could do  the work  better than                                                                    
the federal  government. There was  an annual  fire building                                                                    
officials' forum  to discuss common  issues, which  was also                                                                    
used   for  co-development   process.   He  thought   travel                                                                    
restrictions were a big hole in the process.                                                                                    
                                                                                                                                
Co-Chair MacKinnon stated the  committee would not cover the                                                                    
fiscal note due to lack of time.                                                                                                
                                                                                                                                
Senator Stevens  was distressed  to learn  of the  losses in                                                                    
public  schools in  2001. He  considered  that raising  fees                                                                    
would  only cost  the state  money.  He asked  if there  was                                                                    
prioritization of public schools over other structures.                                                                         
                                                                                                                                
Mr. Tyler stated that the  division prioritized schools, and                                                                    
other higher-risk  occupancies (such as  daycares, churches,                                                                    
and community centers) when doing inspections.                                                                                  
                                                                                                                                
Co-Chair  MacKinnon  asked  if  the  fire  marshal  provided                                                                    
notice before arriving to inspect a building.                                                                                   
                                                                                                                                
Mr. Tyler stated  that there was a  pre-inspection form sent                                                                    
ahead of time  for building owners to consider.  The goal of                                                                    
the division was compliance rather than enforcement.                                                                            
                                                                                                                                
Co-Chair MacKinnon  expressed a concern that  the department                                                                    
was left  to itself to  set the  fees proposed in  the bill.                                                                    
She  asked the  department  to provide  a  fiscal note  that                                                                    
correctly reflected the revenue.                                                                                                
                                                                                                                                
HB  400  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair MacKinnon set the bill aside.                                                                                          
                                                                                                                                
Co-Chair MacKinnon discussed the agenda for the afternoon.                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB038 Explanation of Changes vers A-N.A 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Sectional Analysis ver N.A 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Side-by-Side Comparison 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Sponsor Statement 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - AFL-CIO Resolution 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - Alaska Workers' Compensation Div. of Insurance 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - FY19 DRM WC Projections with HB38 PPI Cost Increase Estimate 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - Inflation Calculation 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - Letter of Opposition 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - Letter of Support 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - PPI by State 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB038 Supporting Document - Similar Legislation 4.6.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB400 Letters of Support.pdf SFIN 4/17/2018 9:00:00 AM
HB 400
HB400 Sectional Analysis.pdf SFIN 4/17/2018 9:00:00 AM
HB 400
HB400 Sponsor Statement.pdf SFIN 4/17/2018 9:00:00 AM
HB 400
HB 38 Supporting Document - PPT Presentation 4.16.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB 38 Testimony of Marianne E Burke.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB 38 DOL 2016 Annual Report - Fatality Rate.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB 38 Kevin Daughtery Testimony with Supporting Document.pdf SFIN 4/17/2018 9:00:00 AM
HB 38
HB 38 DOLWD-LSS Response to SFIN 4.18.18.pdf SFIN 4/17/2018 9:00:00 AM
HB 38