Notice of Public Hearing for Senate Bill 6170
Office of the Governor / Office of Financial Management sent this bulletin at 02/12/2020 08:57 PM PST
You are receiving this email as a subscriber to the Initiative 960 email list. RCW 43.135.031 (I-960) requires that notices be sent each time a
bill that raises taxes or fees is: introduced in either house; scheduled for a public hearing; approved by any legislative committee; or passed by either house of the Legislature.
Please note: This email message was sent from a notification-only address. Please do not reply to this message.
SB 6170, titled AN ACT Relating to plumbing, has been scheduled for a public hearing by the House Committee on Labor & Workplace Standards.
Date and Time: 02/20/2020 8:00AM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm E, Olympia, WA
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 |
Appeal bonds |
Examination fees |
License fees |
Total |
|
|
|
|||||
|
2020 |
$ |
$ |
$ |
$ |
|
|
2021 |
0 |
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 |
0 |
98,760 |
$ 128,160 |
|
|
2025 |
29,400 |
0 |
98,760 |
$ 128,160 |
|
|
2026 |
29,400 |
0 |
98,760 |
$ 128,160 |
|
|
2027 |
29,400 |
0 |
98,760 |
$ 128,160 |
|
|
2028 |
29,400 |
0 |
98,760 |
$ 128,160 |
|
|
2029 |
29,400 |
0 |
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:
Department of Labor and Industries
Bill sponsors and contact information:
Senator Karen Keiser, Prime Sponsor
Democrat
(360) 786-7664
Karen.Keiser@leg.wa.gov
Senator Steve Conway
Democrat
(360) 786-7656
Steve.Conway@leg.wa.gov
Senator Phil Fortunato
Republican
(360) 786-7660
phil.fortunato@leg.wa.gov
Senator Bob Hasegawa
Democrat
(360) 786-7616
Bob.Hasegawa@leg.wa.gov
Senator Curtis King
Republican
(360) 786-7626
Curtis.King@leg.wa.gov
House Committee on Labor & Workplace Standards members and contact information:
Representative Bruce Chandler
Republican
(360) 786-7960
Bruce.Chandler@leg.wa.gov
Representative Mike Chapman
Democrat
(360) 786-7916
Mike.Chapman@leg.wa.gov
Representative Mia Gregerson
Democrat
(360) 786-7868
Mia.Gregerson@leg.wa.gov
Representative Larry Hoff
Republican
(360) 786-7812
HOFF_LA@leg.wa.gov
Representative Gina Mosbrucker
Republican
(360) 786-7856
Gina.Mosbrucker@leg.wa.gov
Representative Timm Ormsby
Democrat
(360) 786-7946
Timm.Ormsby@leg.wa.gov
Representative Mike Sells
Democrat
(360) 786-7840
Mike.Sells@leg.wa.gov
Legislative Bill Information Website:
http://apps.leg.wa.gov/billinfo/
Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp