FEE SUNSETS-CONSTRUCTION OCCUPATIONS         H.B. 4363 (H-1), 4364 (H-1), 4382 (H-1),

                                                                                   4383 (H-1):  SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

 

 

 

 

 

 

 

 

 

House Bill 4363 (Substitute H-1 as reported)

House Bill 4364 (Substitute H-1 as reported)

House Bill 4382 (Substitute H-1 as reported)

House Bill 4383 (Substitute H-1 as reported)

Sponsor:  Representative Chris Afendoulis (H.B. 4382 & 4383)

              Representative Harvey Santana (H.B. 4363 & 4364)

House Committee:  Appropriations

Senate Committee:  Appropriations

 


CONTENT

 

The bills would amend several public acts to delay the sunset on licensing fees paid by those seeking licenses for various types of construction-related occupations. These fees were last increased in 2008, and, after September 30, 2015, current law will roll back the amount to the 2008 level. The bills would delay that sunset until September 30, 2019.

 

Each of the bills would take effect on October 1, 2015.

 

MCL  338.980 (H.B. 4363)

       338.3541 (H.B. 4364)

       338.883 (H.B. 4382)

       338.2313 (H.B. 4383)

                                                                                                                            

FISCAL IMPACT

 

The bills would have a positive fiscal impact on the Department of Licensing and Regulatory Affairs (LARA) and no fiscal impact on local units of government. The bills would prevent LARA from losing approximately $1.4 million in fee revenue each year. Revenue from the fees affected by the bills is credited to the Construction Code Fund, and is used by the Bureau of Construction Codes within LARA to offset the costs related to licensing and regulating construction-related professions.

 

The fiscal year (FY) 2015-16 LARA budget as passed from the Senate Appropriations Committee assumes LARA will be able to collect these fees at their current levels. Table 1 provides additional detail on the fee sunsets that would be delayed by these bills.


Table 1

Fee Sunsets Delayed Under Bills

Bill

License Type

Fee Amount (Current)

Fee Amount (Sunset)

Revenue Loss Prevented Under Bills

4363

Mech. Contractor Exam

$100

$25

$43,050

4363

Mech. Contractor License

100

75

77,300

4364

Journey Plumber - License/Renewal

40

20

80,540

4364

Journey Plumber - License Reinstatement

50

25

4364

Apprentice Plumber - License/Renewal

15

5

13,370

4364

Apprentice Plumber - License Reinstatement

20

10

4364

Master/Contractor Plumber License/Renewal

3001

2001

131,233

4364

Master/Contractor Plumber Lic. Reinst.

100

85

4364

Plumber Exam Fee

100

50

32,800

4382

Master Electrician License/Renewal

50

25

237,000

4382

Electrical Journeyman License/Renewal

40

20

258,760

4382

Apprentice Electrician License/Renewal

15

5

42,200

4382

Fire Alarm Spec. Apprentice Tech. Lic./Ren.

15

5

4382

Fire Alarm Specialty Technician Lic./Ren.

50

25

14,550

4382

Sign Specialist License/Renewal

40

20

6,160

4382

Electrical/Fire Alarm Contractor Lic./Ren.

3001

2001

182,200

4382

Sign Specialty Contractor License/Renewal

2001

1201

3,130

4382

Exam Fees - Various

100

25

89,400

4383

Building Official/Inspector/Plan Reviewer

$25

$10

$150,000

Total

$1,361,693

Fees are assessed every three years.

 

Date Completed:  5-6-15                                                       Fiscal Analyst:  Josh Sefton

 

 

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.