HOUSE BILL NO. 262 "An Act relating to accounting for and appropriations of receipts from fees collected by the Department of Labor and Workforce Development for certain inspections and for certain plumbing and electrical worker certificates of fitness; establishing a building safety account; and providing for an effective date." Representative Lisa Murkowski, Sponsor, spoke in support of the legislation. She noted that the legislation was at the request of the department to eliminate the sizeable backlog of elevator and boiler inspections. In the mid-1990s there were five electrical inspectors, two elevator inspectors, and five boiler/pressure vessel inspectors to inspect approximately 600 elevators statewide. Currently there are only two electrical inspectors, one elevator inspector, and three boiler pressure inspectors to inspect nearly 900 elevators, with nearly 6,000 boiler/pressure vessels overdue for inspection. Representative Murkowski explained that revenue collected by the four additional inspectors would generate enough funds for the program to pay for itself. She noted that discussions have occurred regarding the ability of private industry to provide the services. She concluded that if the backlog is going to be reduced and the safety addressed additional inspectors are needed. Vice-Chair Bunde referred to the fiscal note and questioned why it is not a net zero. REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT explained that the cost of the two boiler inspectors and the elevator inspectors would be $276 thousand dollars but that fees collected would only be $235 thousand dollars. The fees do not cover 100 percent of the costs. The elevator inspectors would not cover their costs; the mechanical inspectors do cover their costs. Vice-Chair Bunde questioned why the fees were not raised to cover the costs. Representative Murkowski observed that fees are uniformed, and pointed out that inspections occur in small remote communities, which cannot sustain the cost. Mr. Henderson noted that fees were revised to $40 - $75 dollars per boiler inspections, depending on size. He added that the entire component would be self-sustaining overtime, including elevator and boiler inspections. TAPE HFC 02 - 30, Side A  Mr. Henderson explained that the estimated increase is $25 thousand dollars per year from fees for mechanical inspections. Representative Hudson observed that the workforce is being increased to accomplish more of the inspections, which would raise revenues from fees. Mr. Henderson clarified that the fees were increased, but the fees still do not cover costs. Vice-Chair Bunde questioned why fees are not sufficient to cover costs. Mr. Henderson stressed that the intent is to cover costs in the future. Representative Lancaster agreed that costs should be covered. Representative Murkowski acknowledged that there may need to be an amendment. Representative Harris suggested that fees would have to be raised. Mr. Henderson stressed that the component is being reduced by $363 thousand general fund dollars and $695.5 thousand dollars in general fund program receipts. These funds are being replaced with income from the Building Safety Account. The bill addresses the whole program with the goal of making it self-sufficient. Representative John Davies asked for further clarification of the fiscal note. Mr. Henderson noted that the Division takes in approximately $1 million dollars a year in program receipts, but only has authorization to spend $695.0 thousand dollars; the rest is lapsing. Representative Davies concluded that the Division receives excess receipts already and is asking for authority to expend them under the new category. In response to a question by Representative Croft, Mr. Henderson clarified that the change in revenues from the increase in fees is $235.0 thousand dollars. Representative Lancaster questioned what would happen after the backlog is addressed. REBECCA NANCE GAMEZ, DEPUTY DIRECTOR, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT explained that there is an aging workforce in the mechanical inspection portion of their operation and thought that attrition would take care of the issue once the backlog is handled. She noted that there are a couple of employees who are slated for retirement but agreed to stay on to assist in the backlog. She noted that the positions are difficult to fill. Representative Whitaker asked how the legislation would affect the fees. Ms. Gamez observed that fees are established by regulation. She did not think that fees would be affected by the legislations. RICH MASTRIANO, DIVISION OF LABOR AND STANDARDS, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT explained that the fees are an averaged based on the entire state. If fees were raised some outlying areas would be set at a higher rate. HB 262 was heard and HELD in Committee for further consideration.