Notice of Senate Passage for Senate Bill 6170

Office of the Governor / Office of Financial Management sent this bulletin at 02/03/2020 09:06 AM PST

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SB 6170, titled AN ACT Relating to plumbing, has been passed by the Senate. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Fiscal
Year

Appeal bonds

Examination fees

License fees

Total

2020

2021

121,520

47,160

$ 168,680

2022

29,400

121,520

1,560

$ 152,480

2023

29,400

121,520

47,160

$ 198,080

2024

29,400

98,760

$ 128,160

2025

29,400

98,760

$ 128,160

2026

29,400

98,760

$ 128,160

2027

29,400

98,760

$ 128,160

2028

29,400

98,760

$ 128,160

2029

29,400

98,760

$ 128,160

Total:

$ 235,200

$ 364,560

$ 688,440

$ 1,288,200

Department of Labor and Industries:

New Licenses - initial

• Assume 2,400 plumbers will be required to be licensed under this bill, phased in over a three year period, or 800 annually beginning July 1, 2020.

• The license fee is $117.90.

• $94,320 increase annually in the Plumbing Certificate Account is expected for fiscal years 2021, 2022, and 2023. (800 applicants x $117.90 = $94,320)

o Of those 800 per year, it’s estimated that 400 are currently paying license fees as a part of RCW 18.27. These fees are paid into the Construction Registration Inspection Account (21V). They would no longer be required to do that.

o RCW 51.44.190 requires that seven percent of fees collected as part of RCW 18.27 be transferred to the general fund until June 30, 2023.

o The decrease in cash receipts to the General Fund-State is $3,301 per year for fiscal years 2021 through 2023. (400 x $117.90 x 0.07 = $3,301)

          o The decrease in cash receipts to the Construction Registration Inspection Account (21V) is $43,859 per year for fiscal years 2021 through 2023, and $47,160 for fiscal years 2024 and 2025. (400 x $117.90 x 0.93 = $43,859; 400 x $117.90 = $47,160)

New Licenses - Renewal

• Licenses are good for three years.

• The renewal fee is $182.40.

• $145,920 increase annually in the Plumbing Certificate Account is expected beginning in fiscal year 2024. (800 applicants x $182.40 = $145,920)

Examination

• Passing a written examination is required for the initial license.

• The examination fee is $151.90.

• $121,520 increase annually in the Plumbing Certificate Account is expected for fiscal years 2021, 2022, and 2023. (800 applicants x $151.90 = $121,520)

Current Renewals

• The bill changes the renewal period for some licenses from a two year cycle to a three year cycle.

• There are currently 250 existing licensees that are impacted.

• The renewal fee is $182.40.

• A decrease of $45,600 in cash receipts is expected in the Plumbing Certificate Account for fiscal year 2022 by extending the renewal period one year.

Penalties

• The bill creates a new license type and new violation types.

• Section 19 of the bill provides for a $500 penalty for first time violations, and a penalty not to exceed $5,000 for a repeat violation. L&I has no data to reasonably estimate how many will be first time violations, and which will be repeat violations. Therefore, the penalty portion of the revenue estimate is indeterminate.

• At minimum, assuming all are first time violations, $61,000 annually in cash receipts is expected in the Plumbing Certificate Account beginning in fiscal year 2022 for new penalties. (122 penalties x $500 = $61,000)

o For fiscal year 2018, there were 611 violations related to plumbing certification.

o With new violations and increased enforcement resources, an additional 20 percent of violations is expected, beginning in fiscal year 2022.

          o 122 new, first time, violations are expected annually. (611 currently x 0.20 = 122)

Appeal bond

• The bill requires a $200 appeal bond for appeals to violations.

• Currently, 20 percent of violations are appealed.

• 733 violations are expected. (611 current level + 122 additional under this bill)

     • 147 appeal bonds are expected (733 violations x 0.20 appeal rate = 147)

• $29,400 annually in cash receipts is expected in the Plumbing Certificate Account beginning in fiscal year 2022. (147 appeal bonds x $200 = $29,400)

Ten-year projection prepared in consultation with the following agencies:

The following legislators voted yea:

Senator Mike Padden
Republican
(360) 786-7606
Mike.Padden@leg.wa.gov

Senator Tim Sheldon
Democrat
(360) 786-7668
Timothy.Sheldon@leg.wa.gov

Senator Mark Schoesler
Republican
(360) 786-7620
Mark.Schoesler@leg.wa.gov

Senator Steve Conway
Democrat
(360) 786-7656
Steve.Conway@leg.wa.gov

Senator Maureen Walsh
Republican
(360) 786-7630
Maureen.Walsh@leg.wa.gov

Senator Jim Honeyford
Republican
(360) 786-7684
Jim.Honeyford@leg.wa.gov

Senator Karen Keiser
Democrat
(360) 786-7664
Karen.Keiser@leg.wa.gov

Senator Brad Hawkins
Republican
(360) 786-7622
Brad.Hawkins@leg.wa.gov

Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov

Senator Hans Zeiger
Republican
(360) 786-7648
Hans.Zeiger@leg.wa.gov

Senator Sam Hunt
Democrat
(360) 786-7642
Sam.Hunt@leg.wa.gov

Senator Jeannie Darneille
Democrat
(360) 786-7652
DARNEILL_JE@leg.wa.gov

Senator Bob Hasegawa
Democrat
(360) 786-7616
Bob.Hasegawa@leg.wa.gov

Senator Dean Takko
Democrat
(360) 786-7636
Dean.Takko@leg.wa.gov

Senator Shelly Short
Republican
(360) 786-7612
Shelly.Short@leg.wa.gov

Senator Christine Rolfes
Democrat
(360) 786-7644
Christine.Rolfes@leg.wa.gov

Senator Jamie Pedersen
Democrat
(360) 786-7628
Jamie.Pedersen@leg.wa.gov

Senator Kevin Van De Wege
Democrat
(360) 786-7646
Kevin.VanDeWege@leg.wa.gov

Senator Steve Hobbs
Democrat
(360) 786-7686
Steve.Hobbs@leg.wa.gov

Senator Judy Warnick
Republican
(360) 786-7624
Judith.Warnick@leg.wa.gov

Senator Curtis King
Republican
(360) 786-7626
Curtis.King@leg.wa.gov

Senator Marko Liias
Democrat
(360) 786-7640
Marko.Liias@leg.wa.gov

Senator Randi Becker
Republican
(360) 786-7602
Randi.Becker@leg.wa.gov

Senator Reuven Carlyle
Democrat
(360) 786-7670
Reuven.Carlyle@leg.wa.gov

Senator Derek Stanford
Democrat
(360) 786-7600
Derek.Stanford@leg.wa.gov

Senator Andy Billig
Democrat
(360) 786-7604
Andy.Billig@leg.wa.gov

Senator Ann Rivers
Republican
(360) 786-7634
Ann.Rivers@leg.wa.gov

Senator David Frockt
Democrat
(360) 786-7690
David.Frockt@leg.wa.gov

Senator Steve O'Ban
Republican
(360) 786-7654
Steve.OBan@leg.wa.gov

Senator Mark Mullet
Democrat
(360) 786-7608
Mark.Mullet@leg.wa.gov

Senator John Braun
Republican
(360) 786-7638
John.Braun@leg.wa.gov

Senator Annette Cleveland
Democrat
(360) 786-7696
Annette.Cleveland@leg.wa.gov

Senator Sharon Brown
Republican
(360) 786-7614
Sharon.Brown@leg.wa.gov

Senator Lynda Wilson
Republican
(360) 786-7632
Lynda.Wilson@leg.wa.gov

Senator Patty Kuderer
Democrat
(360) 786-7694
Patty.Kuderer@leg.wa.gov

Senator Rebecca Saldaña
Democrat
(360) 786-7688
Rebecca.Saldana@leg.wa.gov

Senator Manka Dhingra
Democrat
(360) 786-7672
Manka.Dhingra@leg.wa.gov

Senator Keith Wagoner
Republican
(360) 786-7676
Keith.Wagoner@leg.wa.gov

Senator Mona Das
Democrat
(360) 786-7692
DAS_MO@leg.wa.gov

Senator Joe Nguyen
Democrat
(360) 786-7667
NGUYEN_JO@leg.wa.gov

Senator Jesse Salomon
Democrat
(360) 786-7662
SALOMON_JE@leg.wa.gov

Senator Claire Wilson
Democrat
(360) 786-7658
WILSON_CL@leg.wa.gov

Senator Emily Randall
Democrat
(360) 786-7650
RANDALL_EM@leg.wa.gov

Senator Liz Lovelett
Democrat
(360) 786-7678
Liz.Lovelett@leg.wa.gov

Senator Ron Muzzall
Republican
(360) 786-7618
MUZZALL_RO@leg.wa.gov

The following legislators were excused:

Senator Doug Ericksen
Republican
(360) 786-7682
Doug.Ericksen@leg.wa.gov

Senator John McCoy
Democrat
(360) 786-7674
John.McCoy@leg.wa.gov

Senator Jeff Holy
Republican
(360) 786-7610
Jeff.Holy@leg.wa.gov

Senator Lisa Wellman
Democrat
(360) 786-7641
Lisa.Wellman@leg.wa.gov

Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp

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