Legislature(2009 - 2010)BELTZ 211

03/19/2009 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 138 TAX CREDIT FOR STATE TOURISM PROGRAM TELECONFERENCED
Moved CSSB 138(L&C) Out of Committee
*+ SB 97 CRANE OPERATOR LICENSES TELECONFERENCED
Heard & Held
*+ SB 149 MORTGAGE LENDING TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SB  97-CRANE OPERATOR LICENSES                                                                             
                                                                                                                                
2:11:38 PM                                                                                                                    
CHAIR PASKVAN  announced the consideration  of SB 97.  He pointed                                                               
out that in the past few  years crane accidents around the nation                                                               
have caused numerous workplace deaths  and millions of dollars in                                                               
property  damages. Although  Alaska has  not experienced  a major                                                               
crane  accident  for several  years,  a  chart in  their  packets                                                               
documents  10  fatalities in  the  state  as  a result  of  crane                                                               
accidents.  Although some  of the  accidents were  the result  of                                                               
circumstances beyond the operator's  control, a majority resulted                                                               
from operator  error. SB  97 is  a proactive  step to  avoid more                                                               
crane-related  catastrophes  in  Alaska by  establishing  minimum                                                               
licensing  standards  to  insure that  operators  are  adequately                                                               
qualified.                                                                                                                      
                                                                                                                                
The  State of  Alaska currently  requires licensing  for numerous                                                               
occupations  from  barbers  and  hairdressers  to  veterinarians.                                                               
Licensing  requirements are  designed  to protect  the public  by                                                               
insuring that individuals  are properly qualified to  engage in a                                                               
particular  field  of  enterprise.  Currently  16  states  and  6                                                               
municipalities have passed legislation  to require crane operator                                                               
licensing, and legislation is pending in 6 more states.                                                                         
                                                                                                                                
The  majority   of  these  licensing  requirements   establish  a                                                               
requirement  for certification  through  the National  Commission                                                               
for  the   Certification  of  Crane   Operators  (NCCCO)   or  an                                                               
equivalent   nationally-accredited    training   provider.   This                                                               
legislation  will  not  create  a burden  on  state  revenues  as                                                               
licensing  fees  will  pay  for  enforcement  costs,  subject  to                                                               
legislative appropriation.  He said  Dave Latch,  Chief Operating                                                               
Officer of BC Contractors, submitted a letter of support.                                                                       
                                                                                                                                
2:14:38 PM                                                                                                                    
GRAY MITCHELL, Director, Division  of Labor Standards and Safety,                                                               
Department  of Labor  and Workforce  Development (DOLWD),  stated                                                               
support for  Chair Paskvan's comments  on SB 97. He  reminded the                                                               
committee of some  of the recent crane accidents  across the U.S.                                                               
to  highlight   some  of  the   dangers  associated   with  crane                                                               
operation, and  mentioned that an  Anchorage worker was  killed a                                                               
few  days ago  while operating  a fork  lift. This  worker hadn't                                                               
been properly trained  and certified for that  piece of equipment                                                               
and it cost him his life.                                                                                                       
                                                                                                                                
Numerous occupations have  licensing requirements including truck                                                               
drivers,  realtors and  hair cutters,  but  not crane  operators.                                                               
Current OSHA regulations aren't  adequate; the regulations in the                                                               
construction standard require that  crane operators are qualified                                                               
based on  a standard that  is more than 40  years old. It  is not                                                               
detailed and  leaves it up  to the employer's judgment  to decide                                                               
what training is required.                                                                                                      
                                                                                                                                
Further,  Mr. Mitchell  said, it  might take  till 2016  for OSHA                                                               
standards  to  be  in  place  on the  federal  level.  Even  OSHA                                                               
regulations don't necessarily apply  to public safety provisions,                                                               
and the  crane licensing  requirement would  cover the  public as                                                               
well.  By  establishing  a   licensing  provision  that  requires                                                               
applicants  to  be certified  by  a  nationally accredited  crane                                                               
training  and certification  provider, Alaska  would be  taking a                                                               
positive step  toward minimizing  the chances for  a catastrophic                                                               
crane accident.                                                                                                                 
                                                                                                                                
He said  that Canadians have  been doing this for  several years;                                                               
Ontario passed a requirement in 1978.  They did a study and saw a                                                               
75  percent reduction  in deaths  related to  crane accidents  in                                                               
more than double that period  after the certification requirement                                                               
was started.                                                                                                                    
                                                                                                                                
In California, Mr.  Mitchell said, they compared  the three years                                                               
prior  to  their certification  requirement  to  the three  years                                                               
after and saw an 80 percent  reduction in deaths and a 56 percent                                                               
reduction  in  injuries  related  to crane  accidents.  "So  this                                                               
really works."                                                                                                                  
                                                                                                                                
2:22:00 PM                                                                                                                    
Just because  Alaska has  not seen a  major accident  for several                                                               
years,  isn't a  good reason  to not  address this  problem. From                                                               
1987-1997, Alaska experienced 15  crane accidents under the state                                                               
and federal  OSHA jurisdictions,  and those accidents  caused the                                                               
deaths of 10 employees and serious  injuries to 11 more. With the                                                               
stimulus projects  hitting the streets and  potential natural gas                                                               
pipeline on  the horizon,  Alaska can  expect to  see a  lot more                                                               
crane use coming.                                                                                                               
                                                                                                                                
MR. MITCHELL  said last summer the  DOLWD mailed a survey  to 569                                                               
companies likely to operate cranes  and got 128 responses on this                                                               
issue.  Several  were  opposed   to  licensing,  but  82  percent                                                               
indicated  that  certification  would reduce  accidents,  and  70                                                               
percent  of  those  indicated  that  crane  operators  should  be                                                               
licensed to work in Alaska.                                                                                                     
                                                                                                                                
He explained  that this bill  does not  apply to cranes  used for                                                               
general industrial purposes,  transportation, commercial fishing,                                                               
logging, mining,  oil and gas  exploration or  for manufacturing.                                                               
The  overwhelming   number  of  accidents  in   the  construction                                                               
industry has  pressed the  department to  focus on  that industry                                                               
first and that's the thrust of this legislation.                                                                                
                                                                                                                                
2:23:49 PM                                                                                                                    
SENATOR BUNDE  asked if all  the crane operators he  talked about                                                               
having accidents were uncertified.                                                                                              
                                                                                                                                
MR. MITCHELL said  he didn't have that information;  he said that                                                               
crane certification hasn't been around that long.                                                                               
                                                                                                                                
SENATOR BUNDE  said his  point is  that even  certified operators                                                               
can have  accidents. He asked him  to walk through the  process a                                                               
young Alaskan who  decides he wants to be a  crane operator would                                                               
have  to  do  to  get  the training  and  certification.  He  was                                                               
concerned about  gate keeping and  if you  want to be  a pipeline                                                               
welder and your great granddad wasn't  a member of the union, you                                                               
wouldn't have a chance.                                                                                                         
                                                                                                                                
2:26:16 PM                                                                                                                    
MR. MITCHELL replied that right  now training for crane operators                                                               
is  minimal.  Beside the  Equipment  Operators'  Union, the  only                                                               
other  approved  operation  to   provide  the  training  and  the                                                               
examinations in Alaska is Alaska  Crane Consultants in Kenai. The                                                               
written exam costs  $265 and the practical exam  where the person                                                               
actually  operates the  crane is  $410, a  total of  $675 to  get                                                               
licensed as  a crane operator. Typically  these individuals would                                                               
have  worked as  a trainee  under the  supervision of  a licensed                                                               
crane operator  for several years  and gained some  experience in                                                               
the seat, although  that is not a requirement at  this point. The                                                               
real question  is when you have  a young worker who  shows skills                                                               
in operating a crane, typically  the employer is invested in that                                                               
worker.                                                                                                                         
                                                                                                                                
He  explained  that  the  fee  of   $50  is  one  of  the  lowest                                                               
occupational licensing  fees he has  seen and with this  a person                                                               
could go to work for an  employer and learn the skills they would                                                               
need to  sit for  this exam.  More than  likely the  employer who                                                               
already invested  in the  worker would be  footing the  $675. So,                                                               
cost is not a tremendous barrier.                                                                                               
                                                                                                                                
CHAIR PASKVAN asked him to comment on the 17.5 ton issue.                                                                       
                                                                                                                                
JERRY  ANDREWS, Apprenticeship  Coordinator, Department  of Labor                                                               
and  Workforce  Development  (DOLWD),  said  he  used  to  be  an                                                               
instructor  of crane  training,  a crane  operator  tester and  a                                                               
certified crane operator. He explained  that 17.5 tons was chosen                                                               
by industry  as a  size that  doesn't allow  for the  operator to                                                               
swing with the load. If the  hydraulic crane is greater than 17.5                                                               
tons,  the  classification  generally  has a  swinging  cab.  The                                                               
National  Commission for  the  Certification  of Crane  Operators                                                               
(NCCCO) has broken the certification  into four categories: small                                                               
hydraulics  under 17.5  tons, large  hydraulics  over 17.5  tons,                                                               
lattice boom trucks and lattice boom crawlers.                                                                                  
                                                                                                                                
SENATOR  MEYER asked  if most  cranes  in Alaska  are under  17.5                                                               
tons.                                                                                                                           
                                                                                                                                
MR.  ANDREWS answered  that most  of the  cranes are  larger than                                                               
17.5 tons and  are used in commercial applications.  For the most                                                               
part  the boom  trucks setting  trusses are  over 17.5  tons, but                                                               
many of  those are  used in  the electrical  trade might  be less                                                               
than that.                                                                                                                      
                                                                                                                                
2:32:30 PM                                                                                                                    
ALLEN WILSON,  Alaska State Homebuilding Association,  opposed SB
97. He said there is a  substantial difference in boom trucks and                                                               
cranes. Typically  boom trucks are  used for setting  trusses and                                                               
large beams. They may be on the  job site 1-4 hours and then they                                                               
are gone. It's  quite common for the general contractor  to go to                                                               
the rental  yard, pick up  the truck, go  back and set  the beams                                                               
and it's over  in just a few  hours. Boom trucks are  also used a                                                               
lot in panelized construction.                                                                                                  
                                                                                                                                
2:33:58 PM                                                                                                                    
His concern  is that there is  only one instructor in  the state.                                                               
He understands  Juneau has  one operator who  is licensed  by the                                                               
NCCCO, and  if this bill passes,  when he needs his  trusses set,                                                               
the  licensed operator  might  be  working full  time  on a  "big                                                               
crane," not a  boom truck. This would be an  obstacle for getting                                                               
his work  done during a limited  building season, as well  as add                                                               
to the  cost. He suggested  limiting the bill's  effectiveness to                                                               
20 tons in the exemption section  on page 6. Another option would                                                               
be to  add "cranes  used in the  residential construction  of one                                                               
and two family  homes" on line 4,  page 6. They could  also add a                                                               
definition of boom truck under (c) on line 17.                                                                                  
                                                                                                                                
2:36:56 PM                                                                                                                    
Does this  apply to guy  who is  actually pulling the  levers and                                                               
pushing the  buttons or the  guy who  is on the  ground directing                                                               
him  or both?  Many  times  when they  are  setting trusses,  for                                                               
example, the operator can't see  the project; so someone needs to                                                               
give directions.                                                                                                                
                                                                                                                                
2:37:37 PM                                                                                                                    
MR. ANDREWS also pointed out that  24 of the 26 accidents nation-                                                               
wide were commercial. So he didn't  see the need to regulate boom                                                               
trucks on residential construction sites.                                                                                       
                                                                                                                                
SENATOR MEYER  remarked that  most of  the accidents  happened on                                                               
high-rise buildings  instead of residential buildings.  It's also                                                               
not up to the rental store to know if the renter is certified.                                                                  
                                                                                                                                
MR. WILSON replied  that is correct, and for  instance, the local                                                               
rental company  doesn't require  any licensing  for its  17.5 ton                                                               
boom truck.                                                                                                                     
                                                                                                                                
2:39:47 PM                                                                                                                    
MR. ANDREWS said he agreed with  Mr. Wilson that the controls and                                                               
design  are similar  between 15,  17.5, 20  ton boom  trucks, but                                                               
industry  and the  Specialized Carriers  and Riggers  Association                                                               
have recognized it at 17.5 tons.                                                                                                
                                                                                                                                
SENATOR BUNDE asked  if there is another category  of guy sitting                                                               
in a  cab versus  the guy  sitting on  back of  a boom  truck. He                                                               
asked if either of those were used to differentiate licensing.                                                                  
                                                                                                                                
MR.  ANDREWS replied  that 20  tons can  be a  fixed cab,  a boom                                                               
truck or a  swinging cab. He can appreciate the  argument for the                                                               
17.5 tons versus 20.                                                                                                            
                                                                                                                                
SENATOR BUNDE commented that  they could consider differentiating                                                               
between a swinging cab and a boom truck.                                                                                        
                                                                                                                                
CHAIR PASKVAN  asked Mr. Andrews  to comment as matter  of public                                                               
safety on a boom truck up to 20 tons.                                                                                           
                                                                                                                                
MR.  ANDREWS  replied that  as  a  matter  of public  safety  the                                                               
highest risk for  any of the projects that have  a lifting device                                                               
is not  for the operator, it's  for the folks working  around him                                                               
and  the bystanders.  That being  the case,  he didn't  think the                                                               
division between 17.5  tons and 20 tons would make  or break that                                                               
argument.  The issues  are  electrocution,  ground stability  and                                                               
things  like that.  As the  size and  capacity of  the crane  are                                                               
increased, those risks are also increased.                                                                                      
                                                                                                                                
CHAIR  PASKVAN  said  someone   suggested  including  within  the                                                               
definition  of "crane"  on  page 6  that it  does  not include  a                                                               
knuckle boom, stacker,  lift truck, power shovel for  a 20-ton or                                                               
less boom truck. Would he support that?                                                                                         
                                                                                                                                
2:44:43 PM                                                                                                                    
MR. ANDREWS  replied that  he would  like to  refer that  back to                                                               
Gray Mitchell to explore further.                                                                                               
                                                                                                                                
MR. WILSON  said if  he understood  Mr. Mitchell's  testimony, it                                                               
sounds  like  OSHA will  have  requirements  for these  types  of                                                               
equipment soon.                                                                                                                 
                                                                                                                                
2:45:32 PM                                                                                                                    
RALPH  KIBBY, owner,  Chatham Electric,  said he  is a  statewide                                                               
electrical  contractor and  a member  of the  National Electrical                                                               
Contractors Association (NECA) and that  the bill needs much more                                                               
work. He met with the  sponsor of this legislation and identified                                                               
some of the problems industry  has with the current language, and                                                               
he apologized that it has been  a month and he hadn't gotten back                                                               
to him with recommendations.                                                                                                    
                                                                                                                                
NECA  members  were  polled,  but  they  hadn't  enough  time  to                                                               
respond. The  response he  did get  was that  it needs  much more                                                               
work. He  believes, as a  business owner, that all  accidents are                                                               
preventable, and the  people who worked on this  bill believe the                                                               
same thing. He  said he would work with  committee and department                                                               
on providing data  that would help with any  amendments to insure                                                               
the  resulting law  would not  severely  impact companies  across                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR. KIBBY said that Chatham  Electric has several boom trucks and                                                               
20 tons  isn't enough. He  could give him  a picture of  a 30-ton                                                               
that wouldn't look any different. He  also said unless you have a                                                               
CDL license and  were capable of running  something 26,000 pounds                                                               
and over, you couldn't do it.  Incidentally, he said, you have to                                                               
be licensed for the tonnage of the crane, not what it can pick.                                                                 
                                                                                                                                
He has up  to 30 employees who currently operate  his cranes, and                                                               
he  assured them  that  as an  owner he  didn't  allow anyone  to                                                               
operate  a crane  who  had not  been trained  to  do so.  Someone                                                               
mentioned  exempting  electricians  and line  work,  but  Chatham                                                               
Electric  performs three  disciplines: line,  telecommunications,                                                               
and wiring;  they work  with transmission  distribution, lighting                                                               
in   intersections,  residential,   industrial  and   commercial.                                                               
Everyone at Chatham  Electric has to be capable  of operating the                                                               
crane.                                                                                                                          
                                                                                                                                
The way  this legislation is  written will have a  huge financial                                                               
impact on his business. He  said this industry is already heavily                                                               
regulated. Everyone  at Chatham  has certificates of  fitness and                                                               
the  crane, itself,  has to  get annual  certification. He  asked                                                               
them to look further at the exemptions language.                                                                                
                                                                                                                                
SENATOR BUNDE  asked if all  of his  equipment is called  a "boom                                                               
truck," because he hears that used interchangeably with "crane."                                                                
                                                                                                                                
2:52:48 PM                                                                                                                    
MR. KIBBY replied in his opinion  it's a moving target. Some days                                                               
it's a  boom truck; others  it's a truck  crane. He has  no known                                                               
definition.  He currently  has  a 24  ton  boom truck/crane  that                                                               
doesn't swing. Again, he asked for  more time to work on wording;                                                               
he did not  want to leave it at the  20-tons, because he operates                                                               
in excess of 50 tons.                                                                                                           
                                                                                                                                
2:53:16 PM                                                                                                                    
JARED HAMLIN,  International Union  of Operating  Engineers Local                                                               
203,  supported  SB  97.  He  has   talked  with  a  lot  of  his                                                               
contractors and the  general consensus is they would  like to see                                                               
some  type of  crane operation  licensing put  in place  for many                                                               
reasons. On the business aspect,  in looking at other areas where                                                               
this has been enacted they  have noticed lower comp and insurance                                                               
rates and things like that.                                                                                                     
                                                                                                                                
CHAIR PASKVAN asked  him to comment upon  the distinction between                                                               
a 17.5 ton boom truck and a 20 ton.                                                                                             
                                                                                                                                
MR. HAMLIN replied that the 17.5  ton number comes from the NCCCO                                                               
that had to pick a standard  in which they could properly certify                                                               
crane operators in multiple areas across the United States.                                                                     
                                                                                                                                
CHAIR PASKVAN asked if he thought  that was the standard that was                                                               
most appropriate for safety.                                                                                                    
                                                                                                                                
MR. HAMLIN replied that the people  who make up the NCCCO are the                                                               
manufacturers  of the  cranes, their  users,  their insurers  and                                                               
anybody who  has anything to do  with it. This is  what they came                                                               
up with.                                                                                                                        
                                                                                                                                
2:56:15 PM                                                                                                                    
CHAIR PASKVAN closed public testimony  and held SB 97 for further                                                               
input.                                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
SB 138 Bill Packet.pdf SL&C 3/19/2009 1:30:00 PM
SB 138
SB 149 Bill Packet.pdf SL&C 3/19/2009 1:30:00 PM
SL&C 3/31/2009 1:00:00 PM
SB 149
SB 97 Bill Packet.pdf SL&C 3/19/2009 1:30:00 PM
SB 97