Legislature(2023 - 2024)BARNES 124
02/26/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB385 | |
| HB237 | |
| HB290 | |
| HB200 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 385 | TELECONFERENCED | |
| += | HB 200 | TELECONFERENCED | |
| += | HB 289 | TELECONFERENCED | |
| *+ | HB 179 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HB 290 | TELECONFERENCED | |
| += | HB 237 | TELECONFERENCED | |
HB 290-CERT. OF FITNESS: PLUMBERS/ELECTRICIANS
3:33:10 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 290, "An Act relating to the issuance of
certificates of fitness for plumbers and electricians; relating
to fees for certificates of fitness for plumbers and
electricians; and providing for an effective date."
3:33:36 PM
CATHY MUNOZ, Commissioner Designee, Office of the Commissioner,
Department of Labor & Workforce Development, gave a summary of
HB 290 on behalf of the House Rules Standing Committee, sponsor
by request of the governor. She said the proposed legislation
would change the trainees' certificate of fitness (COF) for
plumbers and electricians from two years to six years.
Currently, if a trainee fails to renew the COF, the hours worked
during that lapse cannot be counted towards his/her journeyman
certification. The legislation would also increase the fee for
the journeyman level certificate from $200 to $300. She said
the elimination of the requirement for trainees to apply for and
pay for the renewals during the training period would expedite
apprenticeship procedure overall. Further, it would avoid the
difficult situation of rejecting training hours when an
individual is ready to sit for the journeyman test.
3:35:20 PM
SCOTT DAMEROW, Chief, Mechanical Inspection, Division of Labor
Standards and Safety, Department of Labor & Workforce
Development (DLWD), presented a PowerPoint, entitled "HB 290
Certificate of Fitness: Plumbers/Electricians." He began on
slide 2, "Proposal," which read as follows [original punctuation
provided]:
This legislation would:
• Change trainee certificate of fitness
durations from two- to six-years
o No change to the $200 fee for this
license
• Increase the fees for journey-level licenses
from $200 biennially to $300 biennially
3:36:33 PM
MR. DAMEROW moved to slide 3, "Why the Change," which read as
follows [original punctuation provided]:
Trainee certificate of fitness holders (enrolled in
the federal apprenticeship program) often lapse their
license during their apprenticeship. This results in:
• Time worked that cannot be counted towards
the journeyman license
• Administrative delays in processing licenses
• Delays in becoming a journeyman
MR. DAMEROW shared the mechanical inspection active licenses on
slide 4 and the amounts of each that were issued. Slide 5
showed new licenses issued by type and year from 2019-2023.
Slides 6-8 showed plumbing, electrical, and other licenses
issued from 2019-2023. He highlighted the overall decline in
plumbing and electrical journeyman licenses despite a slight
uptick in the number of trainees and noted the "alarming"
decline in other licenses issued by Mechanical Inspection as
well.
3:38:36 PM
MR. DAMEROW moved to slide 9, "Trainee Requirements," which read
as follows [original punctuation provided]:
Requirements for a journeyman plumber or electrician
license are similar:
• Completion of 8,000 legally-obtained on-the-
job hours
o May include 1,000 classroom hours
o Hours are submitted on one or more
'Experience Verification Forms'
• Passing score of 70% or better on the exam
• Payment of $200 fee
MR. DAMEROW continued to slide 10, "Trainee Barriers," which
read as follows [original punctuation provided]:
Barriers that can make it difficult to obtain a
journeyman license:
• Employers do not complete the 'Experience
Verification Form' correctly
• Employers are not available to complete the
'Experience Verification Form'
• Some of the hours worked were not legally-
obtained
o Maintenance hours may not be counted
o Trainee certificate of fitness was
lapsed when the hours were worked
MR. DAMEROW advanced to slide 11, "Lapsed Trainee Card Hours,"
which read as follows [original punctuation provided]:
In the period from 2019-2023:
• Electrical trainee license days lapsed: 21,142
(57.9 years)
o Average number of licensees affected per
year: 51.6
o Average days lapsed for each affected
licensee: 81.9
• Plumbing trainee license days lapsed: 15,513 (42.5)
o Average number of licensee affected per year:
28.8
o Average days lapsed for each affected licensee
(107.7)
3:40:20 PM
MR. DAMEROW moved to slide 12, "Trainee Card Renewal
Requirements," which read as follows [original punctuation
provided]:
Renewal of a two-year trainee certificate of fitness:
• Pay $200 renewal fee
MR. DAMEROW proceeded to slide 13, "Impact," which read as
follows [original punctuation provided]:
The proposed change to duration and fees would:
• Lower the cost of apprenticeship programs
for plumbers and electricians
• Reduce administrative requirement to renew a
trainee certificate of fitness in the middle
of an apprenticeship
• Result in much less time lost due to lapsed
licenses
Results:
• Incentivize more workers to enter the trade
apprenticeship programs
• Shift the financial burden to the higher-
paid journey-level workers
• Allow apprentices to "journey out" faster by
removing lapsed periods
3:41:23 PM
MR. DAMEROW moved to slide 14, "Proposed Fee Changes," which
read as follows [original punctuation provided]:
Fee change results:
• $164.5 average increase in annual fees based on
2019-2023 data
• $58.75 average annual savings for trainees
• Trainee licenses will cost $200 for the entire
apprenticeship rather than the current $400
3:41:58 PM
MR. DAMEROW concluded on slide 15, "Reasoning for Proposed Fee
Increase," which read as follows [original punctuation
provided]:
The primary purpose of the proposed fee increase is to
offset the proposed lack of renewals for trainee
licenses
This number was selected to compensate for the lack of
fee increases since 2006
$200-$300 fee change matches the Consumer Price Index
from 2006-2023
Mechanical Inspection is self-funded from program
receipts
3:42:31 PM
REPRESENTATIVE PRAX surmised that a person with a trainee
license might not get enough work. He asked whether there are
enough projects available.
MR. DAMEROW said that scenario is rare because there are a lot
more projects than people. The problem, he said, is when
trainees have an expired two-year card and at the end of the
four years, the hours worked during the lapsed period cannot be
counted. In other words, when trainees forget the
administrative requirement, they are punished for that.
3:44:03 PM
REPRESENTATIVE CARRICK asked whether the decreasing number of
electricians is due the training requirements or outmigration.
In addition, she asked Mr. Damrow to quantify that decrease "by
the numbers."
MR. DAMEROW acknowledged that the reduction is caused by many
factors that are probably beyond the department's control. He
reviewed the data on slide 5 and reiterated that both licensed
plumbers and electricians are suffering from the same downward
trend, which could result in a need to outsource that work.
3:46:37 PM
REPRESENTATIVE RUFFRIDGE returned to slide 3 and questioned the
need for additional revenue. He posited that the department's
effort for license renewals would go down if the trainees'
licenses was extended to six years.
MR. DAMEROW said fees have not been increased in the past 17
years. He acknowledged that the trainee extension would save
the department a slight amount in non-renewals; however, as a
self-funded agency, inflation has impacted everything from the
cost of travel, vehicles, and gas.
REPRESENTATIVE RUFFRIDGE asked what the department is shy of in
terms of funding to accomplish the task at hand, and whether the
fee increase would cover that shortfall.
MR. DAMEROW said the department lacks the funding for updated
databases and computer systems. He said the department is
spending on vital elements; however, infrastructure improvements
are needed to improve the safety of field officers and the speed
of delivery at the licensing desk.
REPRESENTATIVE RUFFRIDGE stated that those projects seem best
suited for a capital project. He asked whether ongoing funded
is needed in other areas.
MR. DAMEROW answered personnel costs. He said every self-funded
cost is increasing exorbitantly without any revenue gains. He
added that the bill would stabilize the department in today's
market without making up for lost revenue.
3:50:38 PM
CHAIR SUMNER announced that HB 290 would be held over.