SB 278-LABOR & WORKFORCE DEVELOPMENT FEES  CHAIR CON BUNDE announced SB 278 to be up for consideration. SENATOR GARY STEVENS moved to adopt CSSB 278(L&C), version \D. There were no objections and it was so ordered. COMMISSIONER GREG O'CLARAY, Department of Labor and Workforce Development (DOLWD), explained that in general terms SB 278 is a user fee bill that offsets some of the operating costs of the Division of Labor Standards and Safety. He deferred questions on the fees to Mr. Grey Mitchell, Director, Division of Labor Standards and Safety, but had a question about what was meant by "instructional devices". CHAIR BUNDE responded that this bill would be heard again and those questions would be answered then. MR. GREY MITCHELL, Director, Division of Labor Standards and Safety, DOLWD, said the fees will help fund enforcement enhancements in the Mechanical Inspection Section, including filling a vacant position, and replace revenue reductions in the Wage and Hour Section. 2:20 p.m. TAPE 04-09, SIDE B  SENATOR HOLLIS FRENCH asked who inspects ski tows and ferris wheels now. MR. MITCHELL replied that amusement rides are inspected by the Mechanical Inspection Section of the Division of Labor Standards and Safety. Currently all inspections are performed by one person. He related that certifying inspectors for amusement rides is very expensive and has to be done every two years. Typically, they are sent to either California or Florida where there are a lot of amusement rides - and this fee will help defray the cost of those trips. SENATOR FRENCH asked how much the state currently charges to do the inspections. MR. MITCHELL replied that right now there is no fee. SENATOR FRENCH asked him to explain what a boiler operator does. MR. MITCHELL answered that they are licensed to do particular types of work on particular types of boilers. The State of Alaska has four different classes of boiler operator licenses. In SB 278, AS 18.60.395 requires them to be licensed by the DOLWD. Currently, there is no fee nor is there a statutory requirement for anyone to have the license. SENATOR FRENCH asked if inspectors are now going to be required to have a license and that they would have to pay $200 to get it. MR. MITCHELL defended his position saying the statute requires the DOLWD to provide a license. Historically, the department has not required licensing, but some employers and different insurance companies want to have the people who are working on boilers in their facilities to be licensed. That is what we're dealing with. It's not a statutory requirement and we don't propose to have one, but if a person does want to come out and get licensed, we want to charge them a fee for it. CHAIR BUNDE commented that the policy for getting a beautician's license was revenue neutral and maybe this is a reflection of that. SENATOR FRENCH asked whom exactly this would cover. MR. MITCHELL replied that it would apply to the group of people who currently have licenses, but not everyone who works on boilers in general. Probably individuals working on the larger boilers would fit the bill the best. Alaska has approximately 978 individuals who have boiler operator's licenses, but he didn't know how many are currently working. There were 300 renewals last year, which is the figure the department based its estimate on. CHAIR BUNDE asked if, in the past, the department has licensed boiler operators as a courtesy for some employers, but now they will charge a fee for the licensing. MR. MITCHELL said that is correct. CHAIR BUNDE asked if the voluntary flex work hour plan (section 4) meant that an employee would work four-tens instead of five- eights or something like that. MR. MITCHELL replied that is correct. CHAIR BUNDE asked if the state requires a flex schedule to be filed with the DOLWD. MR. MITCHELL replied yes, because by statute flex schedules must be exempted from overtime. CHAIR BUNDE asked him to expand on the building safety account in section 6. MR. MITCHELL explained that the building safety account was put into place last year and is basically a way to provide the Mechanical Inspection Section some accountability. Section 6 directs the fees that are charged by that section into that account and inspection services are paid out of it. SENATOR FRENCH asked how many people he thought would be affected by section 3 that deals with applications and examination fees for journeymen and trainees. MR. MITCHELL replied that section would affect 3,300 plumbers and electricians - about 60 percent in the electrical category and about 40 percent in the plumber category. SENATOR FRENCH asked how the revenue neutral concept applies to this category and what is the reason behind increasing the fees. MR. MITCHELL replied that the department has come up short in a few areas in the Mechanical Inspection Section due to cost increases. As a result, an electrical inspector position has been left vacant. The fees would first be used to fill that position and then another position would be added. Currently, he declared, only one inspector covers the entire State of Alaska. SENATOR STEVENS asked why the state needs to know if an employer has a flexible work schedule plan (regarding section 4). COMMISSIONER O'CLARAY replied that Alaska's basic overtime law requires the department to approve any change in the eight-hour day work schedule. Over 240 exemptions were filed last year. History has shown that many employers try to take advantage of employees and that's why laws like this are on the books. SENATOR STEVENS asked if all employers who want a flexible work plan must file through this system. COMMISSIONER O'CLARAY answered that is correct. CHAIR BUNDE said they would set SB 278 aside and hear it in the near future.