Analysis

TOPIC: FORBES MECHANICAL CONTRACTORS ACT, ELECTRICAL ADMINISTRATIVE ACT, AND PLUMBING LICENSING LAW. Staggering license renewal dates, extending validity of licenses, and reducing certain fees.

SPONSOR: SENATOR MICHAEL J. ROGERS

HOUSE/SENATE COMMITTEE: SENATE COMMITTEE ON HUMAN RESOURCES, LABOR, AND VETERANS AFFAIRS

POSITION: The Department requested introduction of the bills and supports their enactment.

PROBLEM/BACKGROUND: Currently, all mechanical contractors, electrical and plumbing licenses (36,881) are renewed at the same period of time. As a result, license renewal is not always timely. Contractors must have a license to secure permits for construction projects and may experience delays because of questions regarding the validity of their licenses. Local code enforcing agencies must contact the Bureau of Construction Codes to determine the validity of licenses.

The Bureau is required to hire additional help during the renewal period to process licenses and to keep abreast of other workloads, particularly permit issuance.

The bills will stagger license renewal dates and extend the validity of contractor licenses from oneyear to three. This provides for a more expedient renewal process.

DESCRIPTION OF THE BILLS: Senate Bill 118 amends Section 10 of Act 192 of 1984, to change the mechanical contractor license expiration date from December 31 to August 31, and to provide for license renewal every three years instead of annually. The bill changes the license renewal fee to $200, triennially, with a pro rata fee to cover the change in the license cycle.

Senate Bill 119 amends Section 3 of Act 217 of 1956, to provide for electrical contractor, fire alarm contractor, and sign specialty contractor license renewal every three years instead of annually. The bill changes the electrical contractor and fire alarm contractor license renewal fee to $200, triennially, with a pro rata fee to cover new licenses issued within the cycle. The fee for the sign speciality contractor is $120, triennially.

Senate Bill 120 amends Section 8 of Act 266 of 1929, to change the expiration date of journeyman and master plumber licenses from December 31 to April 30, and to provide for master plumber license renewal every three years instead of annually. The bill changes the master license renewal fee to $200, triennially, with a pro rata fee to cover the change in the licensing cycle.

SUMMARY OF ARGUMENTS:

PRO: There are two major benefits. First, the bills reduce paperwork requirements for contractors by extending the validity of their license from one year to three, with a reduction in the fee. Second, the mechanical, electrical, and fire alarm contractor, and master plumber license fee is reduced by $25 for a three year cycle.

CON: The misuse of a license may not be detected for a three year period. For example, people have used the license of a deceased person. This may not be detected until renewal when signatures are reviewed. Changes in licenses may not be properly reported in a timely manner--addresses, company names, contractor of records.

SUPPORTER/OPPONENTS: Contractor organizations advocate reforms in the renewal process to eliminate delays their members have experienced in renewing licenses.

No significant opposition is known.

FISCAL INFORMATION: The triennial contractor renewal date reduces revenue to the construction code fund over a three year cycle as shown below:

Mechanical contractor : $223,075
Electrical, fire alarm, sign contractor: $98,825
Master plumber : $113,000
The cost for processing renewals, however, is also decreased.

ECONOMIC IMPACT: The proposals have no significant economic impact.

ADMINISTRATIVE RULES IMPACT: If enacted, the bills will require revisions to the following administrative rules: