Position: The department supports the bill.

Problem/Background: On July 29, 2001 an antique steam tractor engine operated by a hobbyist exploded killing five and injuring 48 people. There was considerable debate at the time as to whether the explosion was due to mechanical failure, operator error, or a combination of the two. Whatever the cause, the explosion caused several states to review the effectiveness of their rules and procedures. Ohio passed a law creating a Historical Boiler Licensing Board. Minnesota revised its law and Wisconsin modified its inspection procedures. Michigan proposed to revise its boiler rules to adopt Appendix C of the National Board Inspection Code and to require ultrasonic testing to identify structural weaknesses missed by current procedures. Michigan’s proposal proved to be very controversial with steam engine hobbyists. Forty-five of them came to the public hearing on the proposed rules. Ultimately, the department
did not proceed with the portions of the proposed rule opposed by the hobbyists.

Description of Bill: The bill amends the Boiler Act of 1965 to define “antique steam boiler” and add other definitions related to antique steam boilers. The bill also increases membership on the Board of Boiler Rules from 11 to 12 members and requires that 1 member represent antique steam boiler owners and operators. The current provision that the fee for an inspection made by a deputy inspector is $25 and is not subject to change by rule is deleted.

Summary of Arguments

Pro: The hobby has a nearly perfect accident record. The causes of the Medina, Ohio explosion were due to low water in the boiler (#1 problem) and human error (#2 problem). Expanding mechanical inspection procedures, as the department proposed to do in rules in 2002 would not have increased public safety, because there is no correlation between problem and this solution. Such inspection procedures would merely create a false sense of security. They would also be so cost-prohibitive to the hobby that their participation in important historical shows/events would cease. Popular events, such as those in Buckley and Mason that draw visitors from throughout the Midwest would cease. The current bill is a constructive compromise between the hobbyists and the department and will provide for hobbyist input into development of reasonable and workable rules.

Con: The bill does not go far enough in protecting antique steam boiler hobbyists from unnecessarily burdensome rules that would negatively affect their hobby. Issues related to ultrasonic testing and other procedures that would be cost-prohibitive for hobbyists may reappear in a new rulemaking.

Fiscal/Economic Impact

(a) Department

Budgetary: The enrolled bill would have no budgetary impact.

Revenue: The enrolled bill would have no revenue implications.

Comments:

(b) State

Budgetary: There is no budgetary impact on the state.

Revenue: There is no revenue impact on the state.

Comments:

(c) Local Government:

Comments: The bill would have no impact on local governments.

Other State Departments: The bill does not affect other state departments.

Any Other Pertinent Information: Tom Husband represented the Michigan Historical Steam Engine Association in working with the department on this bill.

House Bill 6569 was introduced in 2002 to address this issue. There were technical differences between the 2002 bill and the bill originally introduced in 2003.

Administrative Rules Impact: The bill does not mandate new or revised administrative rules. All fees, including those conducted by a deputy inspector, would be subject to establishment by administrative rule.