LICENSING FEES - S.B. 120 (S-1): FLOOR ANALYSIS

Senate Bill 120 (Substitute S-1 as reported)

Sponsor: Senator Mike Rogers

Committee: Human Resources, Labor and Veterans Affairs

CONTENT

The bill would amend Public Act 266 of 1929, which regulates plumbers, to specify that beginning January 1, 1998, an initial or renewal journeyman plumber license would expire on April 30, 1999, and to require the Plumbing Board, as of January 1, 1998, to charge the $20 yearly license fee as well as a monthly pro rata license fee of $6.67 for the period between January 1, 1999, and April 30, 1999. After April 30, 1999, an applicant's license would be renewable annually upon application and payment of the $20 license fee not later than June 30. A person applying for initial licensure at a time other than between April 30 and June 30 would have to pay a $20 fee.

Further, the bill specifies that beginning January 1, 1998, an initial or renewal master plumber's license would expire on April 30, 2001, and the Plumbing Board would have to charge a three-year license fee of $200 as well as a monthly pro rata license fee of $22 for the period between January 1, 2001, and April 30, 2001. After April 30, 2001, an applicant's license would expire every third year thereafter and would be renewable not later than June 30 upon application and payment of the $200 license fee.

(Currently, the initial or renewal fee is $75 per year for a master plumber's license and $20 per year for a journeyman plumber's license.)

The bill also provides that a master plumber's license not renewed by June 30 in a renewal year would be void and could be reinstated only upon application for reinstatement and payment of the appropriate license fee.

MCL 338.908 - Legislative Analyst: L. Burghardt

FISCAL IMPACT

Senate Bills 118 (S-1), 119 (S-1), and 120 (S-1) would affect the licenses issued to electricians and mechanical contractors, fire alarm contractors, sign specialty contractors, and master plumbers by extending the licensing period from one year to three years. The renewal fees attributable to all of the licenses, except sign specialty contractors, also would be changed as a result of this extension from $75 per year to $200 for three years. According to the Department, this change in the fee structure actually would reduce the revenues into the Construction Code Division by $25 per license or approximately $375,000 annually, but the extended license period would reduce the administrative costs for this division as licensing paperwork would be processed less frequently. Therefore, there would be no net fiscal impact. Renewal fees for sign specialty contractors would not be reduced as they are currently $40 for one year and would be $120 for three years.

Date Completed: 2-10-97 - Fiscal Analyst: M. Tyszkiewicz

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.