Notice of Public Hearing for Senate Bill 6170

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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 Year		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