Legislature(2001 - 2002)

01/30/2002 08:35 AM Senate ARR

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
                       JOINT COMMITTEE ON                                                                                     
                ADMINISTRATIVE REGULATION REVIEW                                                                              
                        January 30, 2002                                                                                        
                           8:35 a.m.                                                                                            
                                                                                                                                
                                                                                                                                
HOUSE MEMBERS PRESENT                                                                                                         
                                                                                                                                
Representative Lesil McGuire, Chair                                                                                             
Representative Jeannette James                                                                                                  
Representative Joe Hayes                                                                                                        
                                                                                                                                
HOUSE MEMBERS ABSENT                                                                                                          
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
SENATE MEMBERS PRESENT                                                                                                        
                                                                                                                                
Senator Robin Taylor, Vice Chair                                                                                                
Senator Lyda Green                                                                                                              
                                                                                                                                
SENATE MEMBERS ABSENT                                                                                                         
                                                                                                                                
Senator Georgianna Lincoln                                                                                                      
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
Overview Of Previous Committee Activities                                                                                       
                                                                                                                                
Community & Economic Dev. Interpretation of "Uniform Mechanical                                                                 
Code" Generically                                                                                                               
                                                                                                                              
PREVIOUS ACTION                                                                                                               
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CATHERINE REARDON, Director                                                                                                     
Division of Occupational Licensing                                                                                              
Department of Community & Economic Development                                                                                  
PO Box 110806                                                                                                                   
Juneau, Alaska  99811-0806                                                                                                      
POSITION  STATEMENT:   Discussed  her  decision  to [follow]  the                                                               
International  Mechanical  Code  per  the  Department  of  Public                                                               
Safety's adoption of that code.                                                                                                 
                                                                                                                                
DEAN J. GUANELI, Chief Assistant Attorney General                                                                               
Legal Services Section-Juneau                                                                                                   
Criminal Division                                                                                                               
Department of Law (DOL)                                                                                                         
PO Box 110300                                                                                                                   
Juneau, Alaska  99811-0300                                                                                                      
POSITION STATEMENT:  Answered questions.                                                                                        
                                                                                                                                
BILL SAGER, Executive Director                                                                                                  
Mechanical Contractors of Fairbanks                                                                                             
(No address provided)                                                                                                           
POSITION STATEMENT:  Expressed concerns  with the adoption of the                                                               
International Mechanical Code.                                                                                                  
                                                                                                                                
DWIGHT PERKINS                                                                                                                  
International Association of Plumbing & Mechanical Officials                                                                    
PO Box 33922                                                                                                                    
Juneau, Alaska 99803                                                                                                            
POSITION  STATEMENT:   Expressed  the hope  that  there would  be                                                               
legislation addressing this issue.                                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-1, SIDE A                                                                                                               
Number 001                                                                                                                      
                                                                                                                                
CHAIR LESIL McGUIRE called the  Joint Committee on Administrative                                                               
Regulation  Review  to  order  at   8:35  a.m.    Representatives                                                               
McGuire, James, and  Hayes and Senator Green were  present at the                                                               
call to  order.   Senator Taylor  arrived as  the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
OVERVIEW OF PREVIOUS COMMITTEE ACTIVITIES                                                                                     
                                                                                                                                
CHAIR McGUIRE recalled that last  year the committee reviewed the                                                               
Board  of Pharmacy  regulations, which  were ultimately  adopted.                                                               
The committee  also reviewed the "best  value procurement" method                                                               
that  the  University  of  Alaska  Fairbanks  utilized,  and  the                                                               
committee is  still waiting for  an update  on that matter.   The                                                               
Kachemak  Bay closure  to on-bottom  mariculture was  reviewed by                                                               
the  committee  a  number of  times  and  remains  controversial.                                                               
Chair  McGuire   noted  that   she  has   drafted  a   letter  to                                                               
Commissioner Rue,  Alaska Department  of Fish  & Game,  that will                                                               
circulate to members.  The  letter addresses concerns that remain                                                               
even  after the  court decision.   Last  year the  committee also                                                               
looked at  the proposed  rate increases  to the  Pioneers' Homes,                                                               
for                                                         which                                                               
Chair  McGuire  and Representative  James  continue  to work  on.                                                               
Chair McGuire  expressed her confidence that  this committee will                                                               
review  those  proposed  rate increases  in  conjunction  with  a                                                               
proposal  to make  the Pioneers'  Homes  Veterans' and  Pioneers'                                                               
Homes.   This summer  the committee reviewed  Title 17,  which is                                                               
still being reviewed.   There was also review of  Title 13, which                                                               
relates to  the Department of  Public Safety's (DPS)  adoption of                                                               
the International Plumbing and Building Code.                                                                                   
                                                                                                                                
COMMUNITY &  ECONOMIC DEV. INTERPRETATION OF  "UNIFORM MECHANICAL                                                             
CODE" GENERICALLY                                                                                                             
                                                                                                                                
Number 0449                                                                                                                     
                                                                                                                                
CHAIR McGUIRE  turned to the  Department of Community  & Economic                                                               
Development's  (DCED) adoption  of  regulations interpreting  the                                                               
definition  of the  "Uniform Mechanical  Code".   The  department                                                               
views the statute's  reference to the Uniform  Mechanical Code to                                                               
be   a  generic   term,  which   allows  the   adoption  of   the                                                               
International  Mechanical Code.   Those  working in  the industry                                                               
are  concerned  with  regard  to where  they  will  obtain  their                                                               
certification   and  the   training   that   will  be   required.                                                               
Furthermore, there  are questions  regarding when  the transition                                                               
between  codes will  occur.   Chair  McGuire turned  to what  she                                                               
considers the  more pressing  issue:   the separation  of powers.                                                               
Some  members  of the  committee  are  of  the opinion  that  the                                                               
statutes  are  clear when  referring  to  the Uniform  Mechanical                                                               
Code, which  doesn't include  the International  Mechanical Code.                                                               
Chair McGuire announced that this  meeting is to be informational                                                               
not confrontational,  and intended  for the  committee to  make a                                                               
recommendation in  regard to whether  the department  is adopting                                                               
regulations in conflict with statutes.                                                                                          
                                                                                                                                
Number 0641                                                                                                                     
                                                                                                                                
CATHERINE REARDON, Director,  Division of Occupational Licensing,                                                               
Department  of Community  &  Economic  Development, informed  the                                                               
committee  that  the  division  administers  the  laws  governing                                                               
construction contractors  and mechanical administrators,  both of                                                               
which  are  impacted by  [this  change  in  code].   Ms.  Reardon                                                               
referred  to the  regulation that  was adopted,  which interprets                                                               
the Uniform Mechanical Code to  mean whatever mechanical code DPS                                                               
adopts.   In  the statutes  the division  administers, there  are                                                               
three references  to the Uniform  Mechanical Code.  Two  of those                                                               
references  are found  in the  mechanical administrators  statute                                                               
and  the construction  contractors statute.   Those  statutes are                                                               
where  DCED  draws  its  generic  interpretation.    Ms.  Reardon                                                               
mentioned that there is litigation in regard to this topic.                                                                     
                                                                                                                                
Number 0913                                                                                                                     
                                                                                                                                
MS. REARDON  pointed out  that this  regulation was  reviewed and                                                               
approved by  the Department of  Law, and filed by  the Lieutenant                                                               
Governor.  Therefore,  Ms. Reardon felt that  DCED's actions were                                                               
in accordance  with the law  as interpreted by the  Department of                                                               
Law.   She explained  that [the  division] becomes  involved with                                                               
this  issue because  it licenses  mechanical administrators,  who                                                               
are  advanced/supervisory plumbers  or  installers of  mechanical                                                               
systems.   Every  mechanical  contractor is  required  to have  a                                                               
mechanical administrator working  with the mechanical contractor.                                                               
The mechanical administrator has  extra training, experience, and                                                               
testing.                                                                                                                        
                                                                                                                                
MS. REARDON explained that the  statute, AS [08.]40.270,  directs                                                               
[the  division]  to test  applicants  before  the issuance  of  a                                                               
license.   When  DPS adopted  the International  Mechanical Code,                                                               
the division  questioned under which  code it should  be testing.                                                               
Ms.  Reardon said  that she  saw  the following  choices.   Since                                                               
there wasn't  a Uniform Mechanical  Code in effect in  the state,                                                               
[the division] couldn't  follow a strict reading  of the statute.                                                               
Therefore, the  division could've decided  not to give a  test on                                                               
the code  because no such  [Uniform Mechanical] code  existed any                                                               
more.   The  division could've  also viewed  the situation  to be                                                               
that the  Uniform Mechanical Code is  not in effect in  the state                                                               
any more.                                                                                                                       
                                                                                                                                
Number 1123                                                                                                                     
                                                                                                                                
CHAIR McGUIRE recalled the interim  hearing on this matter, which                                                               
highlighted  the problem  that  there was  [a Uniform  Mechanical                                                               
Code].  The  problem and controversy arose due  to DPS's decision                                                               
to adopt  a different  code.  There  was testimony  that although                                                               
DPS had  adopted the International  Mechanical Code,  the statute                                                               
clearly specified  that the code  for which testing  should occur                                                               
was the [Uniform Mechanical Code].                                                                                              
                                                                                                                                
REPRESENTATIVE   JAMES   related   her  understanding   of   [Ms.                                                               
Reardon's] testimony that she is  in a difficult place because of                                                               
[DPS's]  decisions.   Representative James  pointed out  that Ms.                                                               
Reardon is a  step down from the process.   The real problem lays                                                               
in  the  regulations that  Ms.  Reardon  is depending  on,  which                                                               
Representative  James felt  were out  of order  and don't  comply                                                               
with statute.                                                                                                                   
                                                                                                                                
CHAIR McGUIRE  reiterated that  the issue  was that  the [Uniform                                                               
Mechanical Code] existed,  although there was a new  [code].  She                                                               
recognized  Ms. Reardon's  challenge in  attempting to  deal with                                                               
this new code, the International Mechanical Code.                                                                               
                                                                                                                                
Number 1324                                                                                                                     
                                                                                                                                
MS.  REARDON  clarified that  when  she  said that  [the  Uniform                                                               
Mechanical Code] was  not longer in effect, she  was referring to                                                               
the "currently in  effect in the state" part of  the sentence [of                                                               
AS 08.40.270(a)(3)].   Although she agreed that there  was and is                                                               
a Uniform Mechanical Code, she  explained that she was looking at                                                               
the statement,  "the Uniform Mechanical Code  currently in effect                                                               
in  the  state"  in  statute.   Due  to  DPS's  adoption  of  the                                                               
International  Mechanical  Code,  the division  could  no  longer                                                               
point to  the Uniform Mechanical Code  as in effect in  the state                                                               
and for which  the testing should occur.   Therefore, Ms. Reardon                                                               
viewed the  choices as follows.   One choice being that  there is                                                               
no  Uniform Mechanical  Code in  the state,  and therefore  there                                                               
would be  no testing, which  she viewed as contrary  to statutory                                                               
intent.   Another  choice  would  be to  view  the "currently  in                                                               
effect in this state" language to  not be very important and thus                                                               
the testing  on the Uniform  Mechanical Code  that used to  be in                                                               
the state  could continue, which  seemed contrary to  the statute                                                               
as  well.   There was  also the  approach that  the most  weighty                                                               
portion of the phrase is  "Mechanical Code currently in effect in                                                               
the state",  which is  the route Ms.  Reardon chose.   Therefore,                                                               
she  viewed  the message  of  the  statute  was  to test  on  the                                                               
mechanical code  that is currently in  effect in the state.   Ms.                                                               
Reardon remarked  that she  felt she would  have been  before the                                                               
committee no matter the route she chose.                                                                                        
                                                                                                                                
MS. REARDON  explained that  her goal was  to chose  the [option]                                                               
that  kept the  spirit  of  the law  and  seemed  logical to  the                                                               
customers.  Ms. Reardon said:                                                                                                   
                                                                                                                                
       It seems logical that what I'm being told in this                                                                        
     statute is test on the knowledge that these people are                                                                     
     supposed to  apply when they  work.  And  the knowledge                                                                    
     that they're supposed to apply  is the knowledge of the                                                                    
     code that  complies with  other state  laws.   ... that                                                                    
     seemed to  ... be rational  to me -- that  testing them                                                                    
     on knowledge  that they're not  supposed to use  in the                                                                    
     field, testing them  on a code that was  not any longer                                                                    
     the code that the state  was demanding that people live                                                                    
     up to,  seemed maybe not  to make  as much sense.   And                                                                    
     more importantly,  when I looked  at my  customers, the                                                                    
     people coming  to take  the test,  I thought,  "It will                                                                    
     make most sense to them to  say I'm testing you on what                                                                    
     DPS expects you to be using."                                                                                              
                                                                                                                                
Number 1567                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES acknowledged  the situation  as an  obvious                                                               
dilemma.    Representative James  inquired  as  to Ms.  Reardon's                                                               
understanding of the authority to write regulations.                                                                            
                                                                                                                                
MS.  REARDON  related her  understanding  that  the authority  to                                                               
write regulations is to interpret, flesh out, statutes.                                                                         
                                                                                                                                
REPRESENTATIVE JAMES asked, "Aren't  regulations to implement the                                                               
statute?"                                                                                                                       
                                                                                                                                
MS. REARDON agreed.                                                                                                             
                                                                                                                                
REPRESENTATIVE JAMES related her belief  that the statute in this                                                               
case are very clear [in  its reference] to the Uniform Mechanical                                                               
Code, which  is a trademark  of a specific code.   Representative                                                               
James opined that the statute  didn't allow the regulations to be                                                               
written as done by DPS.                                                                                                         
                                                                                                                                
MS. REARDON  said that she  understood the importance  of keeping                                                               
the  branches  of   government  in  their  proper   roles.    She                                                               
reiterated that  the statute specifies  that the  "Code currently                                                               
in effect in the state" should be used.                                                                                         
                                                                                                                                
Number 1776                                                                                                                     
                                                                                                                                
CHAIR  McGUIRE pointed  out that  this committee  took an  active                                                               
role in the  interim.  During the time when  the regulations were                                                               
being  noticed,  there  was  a large  hearing  during  which  the                                                               
committee  expressed   its  concerns.    At   that  hearing,  the                                                               
committee also expressed its belief  that the regulations were in                                                               
direct conflict with the statute.   Therefore, she inquired as to                                                               
why  the regulations  were adopted  in  the face  of concerns  as                                                               
opposed to approaching  the legislature in an attempt  to reach a                                                               
statutory compromise.                                                                                                           
                                                                                                                                
MS. REARDON noted  that she participated in  that interim meeting                                                               
during  which  she  expressed  her  plan  to  public  notice  the                                                               
regulations.   Therefore,  she didn't  believe such  action would                                                               
take  the  committee  by  surprise.   Ms.  Reardon  recalled  the                                                               
meeting as one  in which [members] questioned what  she was going                                                               
to do with  the situation.  Ms. Reardon said  she thought much of                                                               
that meeting  was in regard to  whether DPS had the  authority to                                                               
adopt the  International Mechanical  Code or whether  that change                                                               
should have occurred.  She  recalled many questions regarding the                                                               
testing  and continuing  education aspects.   She  said, "When  I                                                               
said that my proposal  was going to be to test  on and ... change                                                               
my  continuing education  requirements to  reflect the  code that                                                               
[the Department  of] Public  Safety had  adopted, I  didn't think                                                               
... I was hearing 'No, don't  do that.  Keep continuing education                                                               
on the  Uniform Code, keep testing  on the Uniform Code.'"   From                                                               
that  meeting, she  heard the  committee voicing  its frustration                                                               
with  the   process  that  resulted   in  the  adoption   of  the                                                               
International Mechanical Code.                                                                                                  
                                                                                                                                
CHAIR McGUIRE  said she  viewed this  as the  point at  which the                                                               
process   breaks  down   between  the   administration  and   the                                                               
legislature.   Chair McGuire  maintained that  it was  clear that                                                               
the legislature adopted  the Uniform Mechanical Code,  which is a                                                               
trademark.   Chair  McGuire remarked  that with  more cooperation                                                               
and discussion,  such problems  could be  changed in  statute and                                                               
thus wouldn't result in the current situation.                                                                                  
                                                                                                                                
Number 2066                                                                                                                     
                                                                                                                                
SENATOR  TAYLOR noted  his appreciation  of Ms.  Reardon's candor                                                               
and her angst  in trying to determine what  the department should                                                               
do.  "It's tragic that you  don't have anybody in leadership that                                                               
can tell you  what to do," he  said.  He indicated  that the only                                                               
entity Ms.  Reardon could turn  to was [DPS], which  was "running                                                               
rogue."  [As a legislator],  he questioned why these things would                                                               
be put  in law when a  bureaucrat can decide otherwise.   Senator                                                               
Taylor stressed  that the  legislature establishes  the policies.                                                               
In this case,  the law says that a specific,  copyrighted book be                                                               
adopted.  He  questioned how the department could  think it could                                                               
[not  follow the  law] and  not end  up in  court.   He expressed                                                               
curiosity as  to the  process that  led to  [the adoption  of the                                                               
International Mechanical Code].                                                                                                 
                                                                                                                                
Number 2230                                                                                                                     
                                                                                                                                
MS. REARDON said  that Senator Taylor's comments  seemed to refer                                                               
to different  sections of statute and  two different departments.                                                               
Ms. Reardon  clarified that  DPS has the  authority to  adopt the                                                               
code.   Although she didn't  know much about DPS's  statutes, she                                                               
said she  assumed that the adoption  of the code was  referred to                                                               
in [generic]  terms not specifying  the Uniform  Mechanical Code.                                                               
The  Division  of  Occupational   Licensing  isn't  part  of  the                                                               
decision  to change  the  code.   Two  different departments  are                                                               
trying to carry out their statutes in a responsible manner.                                                                     
                                                                                                                                
MS. REARDON  turned to  the possibility of  a statute  change, as                                                               
mentioned  by Chair  McGuire.   Ms. Reardon  related that  at the                                                               
interim meeting  it was clear  that there  was an issue  with the                                                               
change in the  mechanical code.  Furthermore, she  noted her [and                                                               
the  administration's]  awareness of  the  option  for a  statute                                                               
change.  However,  "we" didn't feel that  these regulations would                                                               
be  contrary to  statute, and  still maintain  that belief.   Ms.                                                               
Reardon asked if the committee  wants the division to continue to                                                               
test on the Uniform Mechanical Code.                                                                                            
                                                                                                                                
CHAIR  McGUIRE reiterated  that the  legislature is  charged with                                                               
making  policy,  and there  is  a  fundamental policy  difference                                                               
between  the  two  codes.    Furthermore,  the  statute  is  very                                                               
specific.   Therefore, the  [thrust] of  the interim  meeting was                                                               
regarding the  need for the  legislature to have a  policy debate                                                               
on  whether the  code  should be  changed.   The  voters [have  a                                                               
voice] during elections.   Chair McGuire agreed  with Ms. Reardon                                                               
in that there is a bifurcated  issue, but the discussion today is                                                               
in regard to  DCED's specific statute under  which applicants are                                                               
to  be tested.    That  specific statute  refers  to the  Uniform                                                               
Mechanical Code.                                                                                                                
                                                                                                                                
Number 2526                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES  remarked  that  there  is  a  conflict  in                                                               
statute in relation  to DPS and what  it can do in  regard to the                                                               
implementation  of safety  issues  in the  state.   However,  she                                                               
maintained  that   the  statute  says  [anywhere]   that  writing                                                               
regulations supercedes statutes.                                                                                                
                                                                                                                                
REPRESENTATIVE JAMES informed  the committee that in  the fall of                                                               
2000 [changing] this  code was contemplated.   However, there was                                                               
no word  to the  legislature.  She  charged that  the legislature                                                               
could've solved this problem had  the legislature been contacted.                                                               
Personally,  she felt  that  [DPS] didn't  want  [to contact  the                                                               
legislature].   Therefore,  Representative  James echoed  earlier                                                               
comments  relating to  the notion  that the  issue is  beyond Ms.                                                               
Reardon.   In  the  future, Representative  James suggested  such                                                               
situations as this  to be brought to the  legislature rather than                                                               
going forward.                                                                                                                  
                                                                                                                                
MS.  REARDON  inquired  as  to  the  [meaning]  of  the  language                                                               
"currently in effect in this state".                                                                                            
                                                                                                                                
CHAIR McGUIRE clarified  that the language refers  to the version                                                               
of the Uniform Mechanical Code.                                                                                                 
                                                                                                                                
MS.  REARDON pointed  out  that she  wouldn't  be deciding  which                                                               
version is in effect.                                                                                                           
                                                                                                                                
CHAIR McGUIRE inquired as to how the version [is chosen].                                                                       
                                                                                                                                
MS. REARDON  explained that  each time  DPS changed  its version,                                                               
the division  would change  the version [on  which it  tested and                                                               
provided continuing  education].  Therefore,  if DPS took  a year                                                               
or so to  change the version, then the division  would be testing                                                               
on the older  version due to the "currently effect  in the state"                                                               
language.    Ms.  Reardon  related  her  understanding  from  the                                                               
committee that she should've kept  testing on the last version of                                                               
the  Uniform Mechanical  Code  that DPS  had  adopted before  the                                                               
change in  code.  She said  she also understood the  committee to                                                               
say  that  the   "currently  in  effect  in   the  state"  wasn't                                                               
significant language.                                                                                                           
                                                                                                                                
CHAIR  McGUIRE clarified  that the  "currently in  effect in  the                                                               
state"  would  be  significant  in  regard  to  the  year.    The                                                               
"currently  in effect  in the  state" provides  the division  the                                                               
opportunity to update the code as it's updated.                                                                                 
                                                                                                                                
MS. REARDON  pointed out  that she was  taking the  "currently in                                                               
effect  in  the  state"  language seriously.    She  related  her                                                               
thinking that  it would've referred  to the "current  addition of                                                               
the  Uniform Mechanical  Code"  if  that's what  it  meant.   She                                                               
explained that at times, the state  waits a long time to update a                                                               
code.                                                                                                                           
                                                                                                                                
CHAIR McGUIRE  stressed that  in this case,  there was  an active                                                               
Joint Committee  on Administrative Regulation Review  which had a                                                               
hearing to clarify  that there was a problem  between the statute                                                               
and what DPS  was adopting.  "There wasn't a  person in that room                                                               
who  could've come  away  believing that  there  wasn't a  direct                                                               
conflict," she emphasized.                                                                                                      
                                                                                                                                
Number 2865                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES  agreed that this  is a tough  situation for                                                               
Ms. Reardon, the  middle person.  He stated  that this discussion                                                               
should "be one step up."                                                                                                        
                                                                                                                                
CHAIR McGUIRE specified  that the request was for  whomever to be                                                               
sent.                                                                                                                           
                                                                                                                                
REPRESENTATIVE HAYES  interjected that  this is  a DPS  issue and                                                               
thus the  committee is  probably discussing  this with  the wrong                                                               
individual [department].                                                                                                        
                                                                                                                                
SENATOR  TAYLOR noted  his appreciation  of Ms.  Reardon's candor                                                               
today and  in the letter she  wrote.  Senator Taylor  pointed out                                                               
that departments read  the law and regulations  very narrowly and                                                               
express  the  need  for  laws   to  be  changed  versus  amending                                                               
regulations.   However,  this department  didn't  even bother  to                                                               
come to  the legislature for  this change but rather  changed the                                                               
law by regulation.                                                                                                              
                                                                                                                                
TAPE 02-1, SIDE B                                                                                                               
                                                                                                                                
SENATOR TAYLOR expressed frustration  with the level of arrogance                                                               
[of the departments].                                                                                                           
                                                                                                                                
Number 2966                                                                                                                     
                                                                                                                                
MS. REARDON clarified  that she didn't decide to  change the code                                                               
in effect in the state.   Therefore, she didn't feel that she has                                                               
displayed any arrogance.  However,  she acknowledged that she was                                                               
instrumental in  the decision to  test on  the code in  effect in                                                               
the state.   Ms. Reardon  remarked that the  legislators involved                                                               
in this issue  should've been aware of their  option to introduce                                                               
legislation resolving this issue.                                                                                               
                                                                                                                                
Number 2877                                                                                                                     
                                                                                                                                
SENATOR  GREEN inquired  as  to the  timeline  during which  that                                                               
could've occurred.                                                                                                              
                                                                                                                                
CHAIR  McGUIRE  highlighted  the  fact that  during  the  interim                                                               
meeting  the  legislature  wasn't   in  session.    [During  that                                                               
meeting] she  expressed the  need [for  the legislature]  to meet                                                               
again and review  this issue.  However,  [these regulations] were                                                               
adopted during the interim.   Furthermore, [the departments] knew                                                               
this  was coming  up when  the  legislature was  in session  last                                                               
year.    Chair  McGuire  questioned  how the  law  could  be  any                                                               
clearer.                                                                                                                        
                                                                                                                                
MS.  REARDON  related  her understanding,  from  the  committee's                                                               
letter  to DPS,  that  it  requested that  DPS  hold  off on  its                                                               
adoption of the code.                                                                                                           
                                                                                                                                
CHAIR  McGUIRE  interjected  that   the  Department  of  Labor  &                                                               
Workforce  Development (DLWD)  is impacted  by DPS's  decision as                                                               
well.   The DLWD  has decided  not to  adopt a  totally different                                                               
code but  rather update to the  2000 code, in recognition  of the                                                               
law.                                                                                                                            
                                                                                                                                
MS. REARDON pointed  out that even after  the committee's letter,                                                               
DPS adopted the regulations.                                                                                                    
                                                                                                                                
Number 2754                                                                                                                     
                                                                                                                                
DEAN  J.   GUANELI,  Chief  Assistant  Attorney   General,  Legal                                                               
Services  Section-Juneau, Criminal  Division,  Department of  Law                                                               
(DOL),  began  by  saying  that   Ms.  Reardon  did  a  good  job                                                               
describing  her dilemma  in regard  to testing  and licensing  of                                                               
mechanical contractors.   Mr. Guaneli  surmised that  Ms. Reardon                                                               
thought,  "and  responsibly  so,"  that  proceeding  forward  and                                                               
testing under the [code in effect] was the responsible choice.                                                                  
                                                                                                                                
REPRESENTATIVE JAMES  related her understanding of  Mr. Guaneli's                                                               
testimony to  be that  the International  Mechanical Code  is the                                                               
law due to the actions of DPS.                                                                                                  
                                                                                                                                
MR. GUANELI added, "And repealed the other one."                                                                                
                                                                                                                                
REPRESENTATIVE   JAMES   clarified    that   DPS   repealed   the                                                               
regulations,   but  didn't   repeal  the   statute  because   the                                                               
legislature repeals  statute.  Therefore, she  indicated that the                                                               
question  is  whether  the  statute  is  more  binding  than  the                                                               
regulations.  Although she recognized  that the statute governing                                                               
DPS if  fairly broad,  she said she  believes the  statute trumps                                                               
the regulations and that is the core of the issue.                                                                              
                                                                                                                                
MR. GUANELI agreed that the  statute governing DPS's authority is                                                               
quite broad; in  fact, there are no limitations in  regard to the                                                               
regulations  DPS can  adopt  for the  purchase  of [the  various]                                                               
codes  in the  interest of  public  safety.   "The only  arguable                                                               
limitation comes from a few  definitional sections and provisions                                                               
in the  testing part of  the statutes,  which Ms. Reardon  has to                                                               
administer," he explained.                                                                                                      
                                                                                                                                
REPRESENTATIVE  JAMES  characterized  this situation  as  one  in                                                               
which  there is  statute  that authorizes  the implementation  of                                                               
regulations and  there is  a statute that  specifies the  type of                                                               
code  to  be  used.    Therefore, if  there  was  such  a  severe                                                               
conflict, shouldn't it have been  brought to the attention of the                                                               
legislature in  order to make a  caveat in DPS's authority  or to                                                               
make the  same change in the  Department of Labor where  the same                                                               
code  is also  specified.   This issue  could've been  dealt with                                                               
last year by changing the statute.                                                                                              
                                                                                                                                
Number 2507                                                                                                                     
                                                                                                                                
MR.  GUANELI pointed  out  that  this issue  was  brought to  the                                                               
legislature in  2000 in the form  of a budget request  by DPS for                                                               
$98,000  to  adopt  the  family  of  International  Codes.    The                                                               
legislature  appropriated  almost $100,000  to  DPS  in order  to                                                               
begin the  process of studying the  codes.  Mr. Guaneli  said, "I                                                               
would  say  that  given  that, there  was  some  legislative,  at                                                               
minimum,  acquiescence but  certainly  indication of  legislative                                                               
intent  that  that  was  the direction  that  Public  Safety  was                                                               
supposed to  be going  in."  Therefore,  Mr. Guaneli  didn't feel                                                               
that  it's  quite  accurate  to  say  that  the  first  time  the                                                               
legislature heard about this code was last summer.                                                                              
                                                                                                                                
MR. GUANELI  turned to the  references to the  Uniform Mechanical                                                               
Code, which earlier testimony has  pointed out is copyrighted and                                                               
bound.  Although that may be  true, DPS never adopted the Uniform                                                               
Code  verbatim.   There  has always  been  some adjustment  under                                                               
DPS's broad  authority to  adopt what's in  the best  interest of                                                               
Alaska.                                                                                                                         
                                                                                                                                
CHAIR McGUIRE informed  Mr. Guaneli that the  Department of Labor                                                               
decided  to adopt  the  2000 version  of  the Uniform  Mechanical                                                               
Code.                                                                                                                           
                                                                                                                                
SENATOR GREEN said that an  appropriation for study doesn't imply                                                               
that [what was studied is the path to follow].                                                                                  
                                                                                                                                
Number 2354                                                                                                                     
                                                                                                                                
BILL  SAGER,   Executive  Director,  Mechanical   Contractors  of                                                               
Fairbanks, testified  via teleconference.  He  explained that the                                                               
Mechanical  Contractors  Association  of Alaska  (MCA)  requested                                                               
that he outline  the association's concerns with  the adoption of                                                               
the  International  Mechanical  Code.   Mr.  Sager  informed  the                                                               
committee that  MCA, several  unions, and  other trade  and labor                                                               
organizations such  as the  Associated General  Contractors (AGC)                                                               
believe that  the Uniform  Mechanical Code  has served  the state                                                               
well  for years  and are  troubled by  the move  to the  "new and                                                               
unproven"  International  Mechanical  Code.    More  importantly,                                                               
[MCA] is  puzzled with the manner  in which the adoption  of this                                                               
new code ignores current state law.                                                                                             
                                                                                                                                
MR. SAGER  highlighted the  fact that the  statute refers  to the                                                               
Uniform  Mechanical  Code  with  capital letters.    The  Uniform                                                               
Mechanical  Code  is  a  well  known code  that  is  a  specific,                                                               
copyrighted mechanical  code not a  generic code.   He questioned                                                               
how  much  more obvious  the  law  could  be.   Mr.  Sager  said,                                                               
"Mechanical  contractors all  over Alaska  want to  know how  the                                                               
Division of Occupational Licensing  can ignore the laws requiring                                                               
testing and education according  to the Uniform Mechanical Code."                                                               
He questioned how  a state agency could ignore the  law and adopt                                                               
a  new code  per regulations.   Mr.  Sager pointed  out that  the                                                               
Uniform Mechanical Code  is a proven code that is  the product of                                                               
an open adoption  process.  If a new code  is necessary, then the                                                               
legislature should review this, he suggested.                                                                                   
                                                                                                                                
Number 2105                                                                                                                     
                                                                                                                                
DWIGHT   PERKINS,  International   Association   of  Plumbing   &                                                               
Mechanical Officials, announced that  he wasn't present to debate                                                               
which  code is  the  better code.   He  recalled  past debate  in                                                               
regard to  various codes  for the  state [which  has led]  to the                                                               
legislature's adoption of a specific  code.  Mr. Perkins remarked                                                               
that  Ms.  Reardon  has  been  very helpful.    He  informed  the                                                               
committee that there were 50  plus contractors who requested DPS,                                                               
the Division of Fire [Prevention]  to not adopt the International                                                               
Mechanical Code.  Additionally, Ms.  Reardon's letter to the Code                                                               
Adoption  Coordinator,   DPS,  dated  June  7,   2001,  says  the                                                               
following:                                                                                                                      
                                                                                                                                
     The  proposed  change from  the  Uniform  Codes to  the                                                                    
     International  Codes  appears   to  conflict  with  the                                                                    
     statutes and  regulations administered by  the Division                                                                    
     of   Occupational    Licensing   governing   Mechanical                                                                    
     Administrators  and Residential  Contractors.   Even if                                                                    
     the  Mechanical   Administrator  and   the  Residential                                                                    
     Endorsement  statutes can  be interpreted  in a  manner                                                                    
     that does  not technically  conflict with  the proposed                                                                    
     DPS  regulations,  the   outcome  will  be  conflicting                                                                    
     policies and public confusion.                                                                                             
                                                                                                                                
MR.  PERKINS pointed  out that  Ms. Reardon's  letter goes  on to                                                               
say:                                                                                                                            
                                                                                                                                
     Furthermore,   the   continuing  education   Mechanical                                                                    
     Administrators  are required  to obtain  under Division                                                                    
     regulations  is training  in the  Uniform  Codes.   All                                                                    
     Mechanical Administrators must  renew their licenses by                                                                    
     August 31,  2001, and document  8-16 hours  of training                                                                    
     on  specific Uniform  Codes.   This  training will  not                                                                    
     have familiarized them with the International Code.                                                                        
                                                                                                                                
MR.  PERKINS  then turned  to  the  conclusion of  Ms.  Reardon's                                                               
letter:                                                                                                                         
                                                                                                                                
     In   conclusion,  the   Division   requests  that   the                                                                    
     Department  of  Public  Safety delay  adoption  of  the                                                                    
     International   Codes   until    conflicts   with   the                                                                    
     Mechanical Administrator  statutes can be  resolved and                                                                    
     the transition can be made in an orderly manner.                                                                           
                                                                                                                                
MR.   PERKINS  specified   that  this   is  all   the  mechanical                                                               
contractors wanted.   Mr. Perkins  then turned to a  letter dated                                                               
May 29,  2001, from Richard Mastriano,  Director, Labor Standards                                                               
and  Safety, Department  of Labor  & Workforce  Development.   He                                                               
directed attention to  the final paragraph of  that letter, which                                                               
reads as follows:                                                                                                               
                                                                                                                                
     Finally,  the adoption  of  the  International body  of                                                                    
     codes  would  create  several conflicts  with  existing                                                                    
     statutes.   These conflicts will  have to  be addressed                                                                    
     by   the  various   agencies   that  enforce   existing                                                                    
     statutes.   Switching enforcement to  the International                                                                    
     codes would  create confusion  and require  each agency                                                                    
     to access what  the costs of enforcing  the codes would                                                                    
     be.   In  closing,  Labor Standards  and Safety  stands                                                                    
     ready  to   assist  you  and   your  agency   with  any                                                                    
     assistance you may need from us.                                                                                           
                                                                                                                                
MR.  PERKINS  pointed out  that  both  of these  letters  express                                                               
concern with  the process DPS  was using  in the adoption  of the                                                               
International Codes.  The process  moved forward even in the face                                                               
of   over  50   contractors  expressing   confusion  with   this.                                                               
Therefore, the hope is that  there will be legislation addressing                                                               
this issue.                                                                                                                     
                                                                                                                                
Number 1758                                                                                                                     
                                                                                                                                
SENATOR  TAYLOR  inquired as  to  the  moving force  behind  this                                                               
change.                                                                                                                         
                                                                                                                                
MR. PERKINS answered that the  statute governing the [Division of                                                               
Fire  Prevention] says,  "The Department  of Public  Safety shall                                                               
adopt  regulations  for  the  purpose   of  protecting  life  and                                                               
property  from   fire  and  explosion  by   establishing  minimum                                                               
standards."   This  is broad  authority,  unlike DLWD's  statute,                                                               
which is  specific.   Mr. Perkins said  that the  Fire Marshall's                                                               
Office  started  this  process.    In  regard  to  Mr.  Guaneli's                                                               
reference to DPS's budget request,  Mr. Perkins remarked that the                                                               
$98,000 appropriation could've been  saved by requesting that the                                                               
legislature introduce legislation [for the change].                                                                             
                                                                                                                                
SENATOR TAYLOR identified  the situation as one in  which a small                                                               
group has generic  authority from which it decides  to change the                                                               
specific  authority  granted  other  agencies.    Senator  Taylor                                                               
expressed  frustration  [with  the   ignoring]  of  the  standard                                                               
legislative  practice in  which  the specific  law overrides  the                                                               
generic law.   He noted his appreciation of the  request to delay                                                               
from Ms.  Reardon and others.   He expressed concern that  in the                                                               
face of much concern and requests  for delay DPS moved forward on                                                               
this.    Therefore, he  suggested  that  the committee  introduce                                                               
legislation.   Senator Taylor further  suggested that there  be a                                                               
Finance subcommittee to take up  the specific budget of those who                                                               
don't understand that the legislature sets policy.                                                                              
                                                                                                                                
Number 1434                                                                                                                     
                                                                                                                                
CHAIR  McGUIRE  announced  that   the  committee  will  introduce                                                               
legislation  labeled   22-LS1369\A,  Bannister,   1/28/02  [which                                                               
ultimately became HB 399].                                                                                                      
                                                                                                                                
SENATOR GREEN  asked if  any of  these codes  overlay [in  such a                                                               
way]  that would  allow  one  to be  tested  under  one code  and                                                               
qualify under the restrictions and requirements of another code.                                                                
                                                                                                                                
MR.    PERKINS    explained    that    all    these    mechanical                                                               
contractors/administrator  have  been  taught under  the  Uniform                                                               
Mechanical Code, which  was addressed in Ms.  Reardon's letter to                                                               
DPS.   There is an organization  that the division uses  to write                                                               
the tests  for these, and  they have had  to rewrite the  test to                                                               
reflect the International Mechanical  Code.  However, the statute                                                               
requiring  the  Uniform  Mechanical  Code  remains.    Therefore,                                                               
contractors are in flux.                                                                                                        
                                                                                                                                
Number 1216                                                                                                                     
                                                                                                                                
SENATOR  GREEN  clarified that  she  is  attempting to  determine                                                               
whether  the language  should  name the  specific  test that  the                                                               
legislature  intends to  be given  notwithstanding  what DPS  has                                                               
required.  Senator Green moved that as a conceptual amendment.                                                                  
                                                                                                                                
MR. PERKINS  informed the  committee that  there is  a three-year                                                               
code cycle.  He pointed out  that the 2000 version of the Uniform                                                               
Mechanical  Code is  what these  folks  are familiar  with.   Mr.                                                               
Perkins specified  that the  language could  say, "They're  to be                                                               
tested  per  the Uniform  Mechanical  Code  as published  by  the                                                               
International  Association of  Plumbing &  Mechanical Officials".                                                               
The  language could  also  refer to  the need  to  update to  new                                                               
versions of the code as appropriate.                                                                                            
                                                                                                                                
SENATOR  GREEN offered  Mr. Perkins'  suggestion as  a conceptual                                                               
amendment.   There being no  objection, the  conceptual amendment                                                               
was adopted.                                                                                                                    
                                                                                                                                
Number 1032                                                                                                                     
                                                                                                                                
CHAIR McGUIRE  announced the [committee's]  intent to  repeal the                                                               
regulations in order to return  to the legislature's authority in                                                               
this area.  Then there needs  to be a legitimate policy debate in                                                               
regard  to  the International  Mechanical  Code  and the  Uniform                                                               
Mechanical Code.   She further  announced the need to  review the                                                               
broad authority of DPS.                                                                                                         
                                                                                                                                
CHAIR McGUIRE asked  if there is any objection  to the [committee                                                               
sponsoring]  the  aforementioned  work  draft.   There  being  no                                                               
objection,    the    [committee   supported    sponsoring]    the                                                               
aforementioned work  draft.  [This  work draft  ultimately became                                                               
HB 399.]                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the Joint                                                                 
Committee on Administrative Regulation Review meeting was                                                                       
adjourned at 10:00 a.m.                                                                                                         

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