Legislature(2023 - 2024)BARNES 124

02/26/2024 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 385 OCCUPATIONAL LICENSING FEES TELECONFERENCED
Heard & Held
+= HB 200 GAMING; ELECTRONIC PULL-TABS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 289 BUSINESS LICENSE FEES TELECONFERENCED
Scheduled but Not Heard
*+ HB 179 EMPLOYEE RIGHTS, EMPLOYER SPEECH TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
*+ HB 290 CERT. OF FITNESS: PLUMBERS/ELECTRICIANS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 237 TEMPORARY PERMIT FOR LAPSED NURSE LICENSE TELECONFERENCED
Moved HB 237 Out of Committee
         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.                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 179 ver A.PDF HL&C 2/26/2024 3:15:00 PM
HB 179
HB 179 Sponsor Statement.pdf HL&C 2/26/2024 3:15:00 PM
HB 179
HB 179 Sectional Analysis.pdf HL&C 2/26/2024 3:15:00 PM
HB 179
HB200 Presentation to H.L&C 02.12.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 200
HB 200 Sectional Analysis 02.12.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 200
HB 200 Transmittal Letter 05.09.23.pdf HL&C 2/26/2024 3:15:00 PM
HB 200
HB200-DOR-TAX-02-09-24.pdf HL&C 2/26/2024 3:15:00 PM
HB 200
HB 290 Sectional Analysis Version A.pdf HL&C 2/26/2024 3:15:00 PM
HB 290
HB 290 Sponsor Statement Version A.pdf HL&C 2/26/2024 3:15:00 PM
HB 290
HB290 HL&C COF Presentation.pptx HL&C 2/26/2024 3:15:00 PM
HB 290
MI 2023 5 Year Review Chart.pdf HL&C 2/26/2024 3:15:00 PM
HB 290
DOR Response to H.L&C HB200 presentation 02.22.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 200
HB 200 ver S Sectional Analysis 02.22.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 200
HB 200 Summary of changes ver A to S 02.22.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 200
HB 385 Fiscal Note version A 2.26.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 385
HB 385 Sectional Analysis version A 2.26.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 385
HB 385 Sponsor Statement version A 2.26.24.pdf HL&C 2/26/2024 3:15:00 PM
HB 385
HB0385A.pdf HL&C 2/26/2024 3:15:00 PM
HB 385